DGAP-News: SYGNIS AG

Press Release

SYGNIS AG reports financial results for the second quarter and first six months of 2017

- Half-year revenue increases 9-fold compared with H1 2016 and 103% compared with H2 2016

- Sixth quarter of consecutive growth (Q2 2016: EUR 1,610 T; Q1 2016: EUR 1,370 T); expected to continue to increase significantly during second half 2017

- Operating cash flow continues to improve - on track to achieve break even in fourth quarter of 2017

- Successful acquisitions of profitable C.B.S. Scientific and Innova Biosciences expand capabilities and increase revenues by strengthening portfolio with best-in-class labelling technology

- Conference call to be held today, 3 August 2017, 2 p.m. CET

Madrid, Spain and Heidelberg, Germany, 3 August 2017 - SYGNIS AG (Frankfurt: LIO1; ISIN: DE000A1RFM03; Prime Standard) today reported results for the second quarter of 2017 and six-month period ended 30 June 2017.

"In the first half of 2017, we continued to actively implement our Grow, Buy, and Build strategy, highlighted by the successful acquisition of two profitable companies - C.B.S. Scientific and Innova Biosciences," said Dr. Heikki Lanckriet, CEO and CSO. "We also continued to introduce new products and services and expanded our access to the growing Chinese market with the signing of a second OEM deal with TANON. In the months ahead, we expect to continue to grow and advance our business with a focus on new product launches."

2017 year-to-date operational highlights:

- Acquisition of profitable Innova Biosciences for EUR 8 million in cash and up to 3.5 million shares completed

- Second OEM deal with TANON signed, expanding access to Chinese market from one to three product lines; expected revenue contribution more than EUR 1 million

- Integration of recently acquired C.B.S. Scientific, a profitable debt-free company, successfully completed within three months

- Seasoned financial executive, David Roth, appointed as new CFO, strengthening the management team

- New services, tools and kits successfully launched

- TrueHelix bioinformatics service platform

- TrueAdvance^TM amplification service to address quality needs in next-generation sequencing

David Roth, CFO, said: "We are continuing to see strong quarter-over-quarter revenue growth, driven by sales of existing products as well as new product sales from recent acquisitions and the launch of new SYGNIS products. We are in a solid financial position and remain on track to achieve operational cash flow break even in the fourth quarter of this year."

First half of 2017 financial results:

Revenues increased 9-fold to EUR 3.0 million for the first half of 2017 (HY 2016: EUR 319 thousand) primarily due to the sale of SYGNIS' own kits and devices.

Total operating expenses were EUR 5.2 million for the first half of 2017 compared to EUR 1.8 million for the same period in 2016.

The increase in operating expenses reflects the increased sales, manufacturing and R&D base of the Group. Operating expenses also include restructuring costs and fair value non-cash accounting charges under IFRS for the Expedeon, C.B.S. Scientific and Innova Biosciences acquisitions, as well as transaction-related expenses.

The adjusted net loss was EUR 0.9 million excluding one-time costs and non-cash charges relating to the acquisitions of Expedeon, C.B.S. Scientific and Innova Biosciences, a strong improvement compared to the EUR 1.45 million loss for the same period in 2016. The reported net loss for the first half of 2017 was EUR 2.0 million.

The following table shows the composition of revenue and operating expenses for the first half of 2017 compared to the first half of 2016:

At 30 June 2017, total assets were EUR 50.5 million, the majority of which was goodwill (EUR 30.4 million). Cash and cash equivalents were EUR 2.7 million, compared to EUR 3.8 million at 31 December 2016.

During the first half of 2017, cash outflows from operating activities, excluding one-off restructuring and transaction costs, continued to improve to less than EUR 1.1 million (H1 2016: EUR 1.5 million). Including one-off cash items, reported cash flows from operating activities were EUR 1.6 million:

Cash outflows from investing activities were EUR 8.6 million (H1 2016: EUR 0,2 million) and related primarily to the acquisitions of C.B.S. Scientific and Innova Biosciences.

Subsequent events:

Effective 7 July 2017, as approved by the Annual General Meeting, Pilar de la Huerta and Peter Llewellyn-Davis were elected new members of the Supervisory Board. Consequently on 7 July 2017, Mrs Pilar de la Huerta resigned from her position as Co-CEO of the Company to take a new position in the pharmaceutical industry and Dr. Heikki Lanckriet became sole CEO, retaining his position as CSO as well.

Outlook 2017:

Following the acquisition of Innova Biosciences in June 2017, the SYGNIS Group has increased its full year revenue targets and expects revenues to be in the range of EUR 7 million - EUR 8 million for 2017 against a previous range of EUR 6.5 million - EUR 7.5 million. This forecast is based on continued strong organic growth of the product sales through expansion of the sales force in combination with further development of the OEM and distribution sales channels.

The Company continues to invest in R&D with a focus on further development of its ground-breaking TruePrime^TM technology for high-value applications such as single cell DNA analysis and Liquid Biopsy for early detection and monitoring of cancer.

With the increased marketing and sales activities and a broader but targeted product offering, SYGNIS intends to further strengthen and expand its sales and customer base across the globe. Assuming the business continues to progress as projected, the Management Board expects to reach break even in the fourth quarter of 2017, with strong upside potential and cash generation expected for 2018.

The Company's 2017 half-year report will be available online in the "Investors" section of SYGNIS' website today 3 August 2017.

Conference call details:

SYGNIS will host a conference call (conducted in English) today, 3 August 2017, at 2 p.m. Central European Time (CET) to discuss the consolidated financial statements for the half year ended 30 June 2017 and important developments during the reporting period and to provide a strategic update and financial outlook.

Interested parties can access the conference call via the following telephone numbers:

* From Germany: +49 (0) 69 7104 45598
* From Spain: +34 91 787 0777
* From the US: +1 646 843 4608
* From the UK and other countries: +44 (0) 20 3003 2666

When prompted, please provide the password "SYGNIS".

The conference call, which is also being webcast, will be accompanied by a slide presentation which can be accessed during the call here.

Please dial in 5 minutes before the beginning of the event.

A conference call recording will be available in the "Investors" section of the Company's website at www.sygnis.com.

For further information, please contact:

SYGNIS AG
Dr. Heikki Lanckriet
CEO/CSO
Phone: +44 1223 873 364
Email: heikki.lanckriet@sygnis.com

MC Services AG
Raimund Gabriel
Managing Partner
Phone: +49 89 210228 0
Email: sygnis@mc-services.eu

About SYGNIS AG: www.sygnis.com

SYGNIS AG develops and commercialises value-added, easy-to-use, reliable products based on its proprietary technologies, offering a wide range of solutions that address key challenges in molecular biology. With the acquisitions of Expedeon Holdings, Ltd. in 2016 and both C.B.S. Scientific Company, Inc. and Innova Biosciences Ltd. in 2017, SYGNIS significantly expanded its product line and now covers the entire molecular biology workflow, including genomics, proteomics and tools as well as cutting-edge bioconjugation technologies and services. SYGNIS' products are sold through a direct sales force and several distribution partners in Europe, the U.S. and Asia. The SYGNIS Group has offices in Germany, Spain and the UK; production sites in the UK and the U.S. and sales offices in Asia. The Company is listed on the Prime Standard segment of the Frankfurt Stock Exchange (Ticker: LIO1; ISIN: DE000A1RFM03).

### This publication is intended for information only and constitutes neither an offer to sell nor an invitation to buy securities. Some statements included in this press release, relating neither to proven financial results nor other historical data, should be viewed as forward-looking, i.e. not definite. Such statements are mainly predictions of future results, trends, plans or goals. These statements should not be considered to be total guarantees since given their very nature they are subject to known and unknown risks and imponderability and can be affected by other factors as a consequence of which the actual results, plans and goals of SYGNIS AG may deviate greatly from the established conclusions or implied predictions contained in such statements. SYGNIS does not undertake to publicly update or revise these statements in the light of new information or future results or for any other reason. ###