Presentation to Investors

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BIOCLONES (PTY) LTD Dr Shaun Cochrane - Chief
Executive Officer
Presentation to Investors Analysts 28 February
2008
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Contents

• Company Profile
• Mission
• Products and Projects
• Senior Management
• Partnerships
• Business Value
• Valuations
• Future Strategies and Time Frames
• Resources Required

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Company Profile
Sekunjalo Investment 49.9
BIOSIMILARS
NEW TECHNOLOGIES
Repotin Recombinant Human Erythropoietin
(EPO) Global Market Size for EPO 12 billion
Dendritic Cell Vaccine Project. Global Market
for DCVs is substantial
Recombinant Human Granulocyte Colony Stimulating
Factor (G-CSF). Global Market Size for EPO
4.4 billion
Retro-Inverso Peptides Project Global vaccine
market in the region of 11.4 billion
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Mission

• THE DEVELOPMENT OF QUALITY, COST-EFFECTIVE,
  MODERN BIOTECHNOLOGY PRODUCTS FOR HUMAN
  PHARMACEUTICAL USE.

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Products - Repotin

• Repotin 2000 and Repotin 4000 (Recombinant
  Human Erythropoietin 2000 and 4000 IU per ml)
• Recombinant human erythropoietin (Baby Hamster
  Kidney cell derived)
• Registered with the South African Medicines
  Control Council in July 1997.
• Products marketed in South Africa since early
  1998. State tender for the past nine years.

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Products - Repotin

• CELL CULTURE DIVISION, CENTURION, PRETORIA
• Pilot Production Facility GMP approved
• Occupied in 2001

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Products G-CSF

• Technology Transfer Agreement negotiated with
  large European Biotech company
• Ribotech to be developed into G-CSF manufacturing
  plant
• R35 million investment obtained from Biopad
• Anticipated formulations 30MU/ml and 48MU/ml

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Products G-CSF

• RIBOTECH, EPPING
• CAPE TOWN
• Designed to FDA and EMEA standards

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RD Project Dendritic Cell Vaccines

• Bioclones has developed the technology to mature
  dendritic cells for potential use in personalised
  medicine.
• Worldwide market for dendritic cell vaccines is
  substantial. Market potential approximately
  32,5 billion in 2006 for cancer therapy alone.

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RD Project Retro-Inverso Peptides

• Bioclones has also developed patented technology
  for retro-inverso peptides potentially
  revolutionising the vaccine market. Such vaccines
  could be developed in tablet form without the
  need for a cold chain
• The vaccine market is substantial 11.4 billion
  2006.

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Senior Management and Staff
Dr Shaun Cochrane CEO
Maryna Fuss Head - CCD
Ismet Amod COO/Marketing Director
Chantelle Ah Sing Financial Director
Ribotech
Repotin
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Senior Management and Staff

• Dr Shaun Cochrane - CEO
• Extensive Life Sciences experience both in South
  Africa and the U.K.
• PhD from UCL (London).
• MBA from UCT GSB with additional courses taken at
  London Business School.
• International network.
• Knowledge of pharma and biotech industries
  through work with Market Research and Consulting
  Company.

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Senior Management and Staff

• Ismet Amod COO/Marketing Director
• Managing Director experience
• Extensive export drive and foreign trade mission
  drives.
• Chantelle Ah Sing Financial Director
• Qualified CA with articles carried out with
  Deloitte and Touche
• Financial management experience in commercial
  industry.

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Senior management and staff

• Cell Culture Division
• Maryna Fuss
• One of leading Biopharmaceutical registration
  pharmacists in SA.
• Extensive regulatory affairs experience.
• Dr Waha Vundla
• RD experience with multinational beverage
  company .
• International qualifications and research
  experience.
• Dr Crispen Mawadza
• International research experience

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Senior Management and Staff

• Cell Culture Division cont.
• Gail Ziegelmeier
• 18 years experience with Bioclones
• Worked with monoclonal antibodies, erythropoietin
  manufacture and DCV RD project.
• Ribotech
• Dr Francisca Mochaba
• International qualifications.
• Research experience with multinational beverage
  company.
• Numerous academic publications.

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Partnerships

• Major European Biotech Company
• Provides licensing agreement for the use of
  rHU-EPO transfected cell line.
• Provides licensing agreement for technology and
  rHu-GSCF cell line for the manufacture of G-CSF.
• University of Pretoria
• Location for DCV research
• University of Cape Town
• Location for immunology unit carrying out
  bio-assays for Repotin manufacture.

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Business Value

• Introduction
• Extensive investment by a number of investors.
• SAB Miller, SA mining house and others have
  invested in debt and equity gt R200m.
• This was only for the production of Repotin and
  Ampligen
• Equivalent Ampligen facility in the U.S. cost
  26m

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Business Value

• G-CSF- Ribotech
• Facility in the process of being developed for
  G-CSF manufacture.
• A government BRIC has invested 5.3m in Ribotech
  for a 35 share.
• Thus minimum value is 15m

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Business Value

• Intellectual Property
• 40 patents held by Bioclones
• Patents include
• Process for the maturation of Dendritic Cells and
  a Vaccine.
• Retro-, Inverso and Retro-inverso Synthetic
  Peptide Analogues.
• Purification of Erthyropoietin.
• Monoclonal Antibody
• Others
• These patents have, however, not been valued to
  date.

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Business Value

• Intellectual Property Cont.

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Valuations

• Equity Value of Bioclones

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Valuations

• 1. DCF for CCD
• Value R340m (Audited)
• Assumptions
• 0.5 - 6 escalating market share
• Capital requirements approx 22.3m (motivation
  for listing).
• Key advantages of Bioclones
• Facility has proven track record of production
• Facility approved by the MCC
• Sekunjalo investing heavily in upgrade of
  facility

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Valuations

• 2. G-CSF
• Valuation R200m (not included for SIL
  valuation)
• Assumptions
• 0.5 - 4 escalating market share
• Capital Requirements 1.5m
• 3. Dendritic Cell Vaccine and Retro-Inverso
  Peptides
• It is too early to take these RD projects into
  account for a valuation.

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Valuations

• Comparable Listed Biotech Company Valuations

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Future Strategies and Time Frames
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Resources Required

• Company is relatively ungeared this is highly
  unusual for a Biotech company.
• International Partnerships and Tech Transfer
  agreements required for development of product
  portfolio.
• Additional university partnerships to ensure an
  RD base.
• Investment by Government agencies such as the
  BRICs and the DST required.

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Resources Required

• Listing on international Stock Exchange required
  for upgrade of current facility and development
  of new EPO facility.
• Anticipated for second half of 2008.

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Thank You!