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Biofrontera agrees with ASAT on the settlement of purchase price payments with new shares

June 16, 2011 - London

Biofrontera AG /Biofrontera agrees with ASAT on the settlement of purchase price payments with new shares . Processed and transmitted by Thomson Reuters ONE.The issuer is solely responsible for the content of this announcement.

Leverkusen, Germany - Biofrontera AG (DSE: B8F) and ASAT Applied Science and Technology AG, Zug, Switzerland, agreed yesterday to transfer debt claims of € 2,094,395 against Biofrontera Bioscience GmbH (a wholly-owned affiliate of Biofrontera) to Biofrontera. In return ASAT will receive 385,000 new Biofrontera shares from authorized capital.

The claims of ASAT stem from 2004, when Biofrontera purchased know-how and patents related to her leading product BF-200 ALA, which is currently in the European approval process. A payment obligation of € 1 mln. remaining after yesterday's agreement will be due three months after the approval.

The transaction leads to a considerable improvement of the equity situation of the Biofrontera group. If the debt had been paid to ASAT in cash, substantially more shares had to be issued to refinance the payment. Thus, the transaction improved both, equity capital and liquidity, thereby particularly accommodating the interests of the share holders.

Peter Schmid, president of the board of ASAT commented: "Given the advanced approval process of BF-200 ALA we expect a very positive development, and accepted the modification of the purchase agreement and the receipt of the shares since we anticipate a profound increase of the share price. As a visible indication for our long-term interest we have agreed to the obligation to hold the shares for at least one year after the registration of the shares. We are happy to be again involved in the commercial success of the product through this instrument."

Hereto Prof. Hermann Lübbert, CEO of Biofrontera AG: "The investment in kind through the transfer of the debt claim corresponds to a share price of € 5.44 and illustrates the potential that our business partners, which naturally expect even higher prices, see in the Biofrontera shares."

BF-200 ALA gel is a drug for the treatment of actinic keratosis. It is applied in the relatively novel photodynamic therapy (PDT). This therapy is a one-time treatment of actinic keratosis lesions with very high efficacy and excellent cosmetic results, without the side-effects and discomfort of a long-term treatment.
Actinic keratosis is a superficial Skin cancer that is still restricted to the upper skin layer (the epidermis). These tumors result from UV-light induced lesions accumulating during the life time. They occur very frequently in sun-exposed skin regions. In about 10-15% of the affected people the actinic keratosis lesions develop into malignant, potentially fatal squamous cell carcinomas.

About Biofrontera AG
Biofrontera aims at attending and treating the skin, recognizing the aesthetic needs of a person's visual reflection.
Biofrontera is listed in the regulated market of the Düsseldorf stock exchange under the symbol B8F and the ISIN number DE0006046113.

This press release contains forward-looking statements based on the currently held beliefs and assumptions of the management of Biofrontera AG, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the assumptions expressed or implied in this press release to be faulty. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on the forward-looking statements. Biofrontera AG disclaims any obligation to update these forward-looking statements to reflect future events or developments.

For further information please contact:

Werner Pehlemann

+ 49 (0) 214 87632 0
+ 49 (0) 214 87632 90

Biofrontera AG
Hemmelrather Weg 201
D- 51377 Leverkusen, Germany

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Biofrontera AG
Hemmelrather Weg 201 Leverkusen Germany

WKN: 604611;ISIN: DE0006046113;
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Börse Berlin,
Open Market (Freiverkehr) in Frankfurter Wertpapierbörse,
Freiverkehr in Bayerische Börse München,
Regulierter Markt in Börse Düsseldorf;

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Source: Biofrontera AG via Thomson Reuters ONE



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