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MagForce to Radically Enforce Market Set Up Strategy With New Management Team


October 1, 2012 - Berlin

MagForce AG / MagForce to radically enforcemarket set up strategy with new management team. Processed and transmitted by Thomson Reuters ONE.The issuer is solely responsible for the content of this announcement.

· Focus on most important value drivers in the short-term

· Experienced senior executives added to the management board

· Core functions will be centralized in Munich

· Million Euro cost savings expected from restructuring measures

Berlin, Germany, October 1, 2012 - MagForce AG (Frankfurt, XETRA: MF6), aleading medical device company in the field of nanomedicine with a focus ononcology, today announced additions to the management board and furthermeasuresto enforce commercialization of NanoTherm® therapy. Thus, focusing onestablishing the NanoTherm® therapy in the oncology market as well ason itscommercialization for near-term value generation.

In the short to mid term, MagForce will dedicate its financial resources tothepost marketing trial in glioblastoma, which is expected to start in early2013and is supposed to make a significant contri­bution to its strategicset up.Simultaneously, the Company will also focus on the commercialization of itsNanoTherm® therapy with its distribution partners including DELRUS andTekGrup,development partners such as the Mayo Clinic for gastro-intestinal cancerandthe Department of Urology at Duesseldorf University for prostate cancer, aswellas the production of nanoparticles.

In line with this strategy, the Company's core functions, includingclinical andbusiness development, medical affairs plus legal & IP will be concentratedatthe MagForce site in Munich where these teams are already located.Production ofnanoparticles, NanoActivators(™), software engineering as well as thefinancedepartment will remain at the Company's registered office in Berlin. Allearlyresearch activities will be reduced to a minimum and will be outsourced asdeemed necessary.

In this respect experienced senior executives are added to the managementboard.Prof Dr Hoda Tawfik, currently VP Clinical Development and Medical Affairs,willbe appointed COO. Christian von Volkmann, currently acting CFO, will assumetheposition of CFO, both effective immediately. They will jointly lead theCompanyas co-CEOs going forward. The founder and long-term Board member Dr AndreasJordan will step down from the management board of MagForce to pursue newprojects, but will continue to serve the Company as an advisor.

Along with these measures the headcount of MagForce will be reduced from 27to12. These measures are meant to annually save the Company a seven digitEuroamount.

"With this restructuring MagForce is completing a period of importantstrategicrefocus. In the short-term, we have to concentrate all our efforts andfinancialresources on the development of strategic partnerships as well as onestablishing NanoTherm® therapy in the area of oncology. Thus,concentrating onthe post-marketing clinical study planned at different sites in Germany,whichis critical to achieving acceptance of our NanoTherm® therapy in theGermanmedical community. We are encouraged about the progress we are making andneedto ensure that we translate this momentum into commercial success,"commentedProf Dr Hoda Tawfik, COO of MagForce AG.

"The implementation of these measures announced today are essential toenforcethe commercialization of NanoTherm® therapy," commented Norbert Neef,Chairmanof the Supervisory Board of MagForce AG. "We strongly regret that thisrestructuring results in lay-offs and I thank all employees for theircontinuedsupport. We sincerely thank Dr Jordan for his long term commitment andeffortsin the previous years. We are glad that Dr. Jordan will continue tosupport usas an advisor."

About MagForce AGMagForce AG is a leading medical technology company in the field ofnanomedicinein oncology. The Company's proprietary, NanoTherm® therapy, enablesthe targetedtreatment of solid tumors through the intratumoral generation of heat viaactivation of magnetic nanoparticles. NanoTherm®, NanoPlan®, and

NanoActivator(™) are components of the therapy and have received EU-wideregulatory approval as medical devices for the treatment of brain tumors.MagForce, NanoTherm®, NanoPlan®, and NanoActivator(™) aretrademarks ofMagForce AG in select countries.

For more information, please visit www.magforce.com.

DisclaimerThis release may contain forward-looking statements and information whichmay beidentified by formulations using terms such as "expects", "aims","anticipates","intends", "plans", "believes", "seeks", "estimates" or "will". Suchforward-looking statements are based on our current expectations andcertainassumptions, which may be subject to a variety of risks and uncertainties.Theresults actually achieved by MagForce AG may substantially differ fromtheseforward-looking statements. MagForce AG assumes no obligation to updatethese forward-looking statements or to correct them in case ofdevelopments, whichdiffer from those, anticipated.

MagForce_Press Release_Oct 01, 2012:http://hugin.info/143761/R/1645513/530172.pdf

This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:(i) the releases contained herein are protected by copyright and other applicable laws; and(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: MagForce AG via Thomson Reuters ONE[HUG#1645513]

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