Two Acquisitions in the Biomaterials Segment

aap Implantate AG, a German medical technology company specialized in healing bone fractures, joint replacement, bone cements and biomaterials, is acquiring retroactively from July 1, 2005, all of the shares in Osartis GmbH & Co. KG (previously holding 49%) and a 51% stake in ADC Advanced Dental Care GmbH & Co. KG, both headquartered in Obernburg, Germany, and is thereby extending its activities in the biomaterials segment. The acquisition of ADC is still formally subject to approval by ADC´s shareholder meeting.

Osartis develops and manufactures the synthetic bone replacement material OstimŽ that aap already distributes in Germany and Austria. Osartis markets OstimŽ in various countries via distribution partners. Along with OstimŽ Osartis is developing a number of other synthetic bone replacement and infection treatment products. ADC distributes on an OEM basis products developed by Osartis in the dental sector. In 2005 the two companies will jointly total around EUR 850,000 in sales. They are consolidated and have already reached breakeven at the net profit level.

aap is paying for the acquisition by issuing around 350,000 shares in aap Implantate AG and repaying around EUR 500,000 in loan capital. Osartis and ADC are to be integrated into the biomaterials division that aap plans to set up at the beginning of 2006. aap is currently engaged in negotiations with other potential partners in Europe and Asia on international distribution of OstimŽ and plans at the same time to apply in the months ahead to the FDA for OstimŽ approval in the United States.