MagForce AG : MagForce Publishes Financial Results and Operative Highlights for 2012

 MagForce AG : MagForce Publishes Financial Results and Operative Highlights
                                   for 2012

MagForce AG / MagForce Publishes Financial Results and Operative Highlights
for 2012 . Ad hoc announcement according to § 15 WpHG. Processed and
transmitted by Thomson Reuters ONE. The issuer is solely responsible for the
content of this announcement.

  *Strategic realignment and operative restructuring completed
  *Successful capital increase totaling €33.5 million (after period-end)
  *Dr. Ben J. Lipps appointed Chairman of the Management Board as of
    September 2013 (after period-end)
  *Focus on expanding strategic partnerships as well as on establishing and
    commercializing the NanoTherm® therapy
  *Post-marketing study approval from the Federal Institute for Drugs and
    Medical Devices and the Federal Office for Radiation Protection (after

Berlin, Germany,  June 27,  2013  - MagForce  AG  (Frankfurt, Xetra:  MF6),  a 
leading medical device company in the  area of nanotechnology with a focus  on 
oncology, published today its financial  results and operative highlights  for 
the fiscal year ending on December 31, 2012.

Christian von Volkmann, CFO  and co-CEO of  MagForce comments: "For  MagForce, 
2012 was characterized  by the Company's  important strategic realignment  and 
operational restructuring. We concentrated all of our activities and  finances 
on both expanding our  strategic partnerships as well  as on establishing  the 
NanoTherm® therapy in the oncology field and its corresponding  post-marketing 
study. The  most important  milestone for  MagForce was  the capital  increase 
announced in December 2012 and successfully completed in March 2013, amounting
to €33.5 million against cash and noncash contributions. Despite the difficult
market  environment,   the   transaction  attracted   renowned   international 
investors. This capital increase allows us  to lay a solid foundation for  the 
implementation of our strategy  and helps to  put our Company  on the path  to 
success. We are also extremely pleased that Dr. Ben J. Lipps, former  Chairman 
of the Management  Board at  Fresenius Medical Care  AG, will  be joining  the 
Management Board  of  MagForce as  Chairman  beginning in  September  2013  to 
support us as we move forward. Both the overwhelming response of investors  to 
the capital  increase  and the  fact  that we  have  added Dr.  Lipps  to  our 
management  team  only  reassured  us  that  our  strategic  realignment   and 
operational restructuring were the right decisions."

The highlight of the  Company's development in the  2012 reporting period  was 
the completion of the strategic  realignment and operational restructuring  of 
MagForce AG.  Ultimately,  MagForce  focused on  establishing  the  NanoTherm® 
therapy on the oncological market and on commercializing it for value creation
in the short-term. MagForce therefore concentrated on the primary steps needed
for successful marketing.  As a  result, we built  up a  network with  leading 
neurosurgeons and neuro-oncologists and developed a clinical trial plan for  a 
three-armed, randomized  study  on  glioblastoma patients  to  underscore  the 
benefits of  the  NanoTherm®  therapy  and  facilitate  its  acceptance  among 
specialists. In 2012, the  study was submitted to  the Ethics Commission,  the 
Federal Institute for  Drugs and Medical  Devices and the  Federal Office  for 
Radiation Protection and was approved in the first half of 2013.

In accordance  with  the new  strategy,  the  core segments  of  the  Company, 
including Clinical  Development,  Business Development,  Medical  Affairs  and 
Legal & IP, were consolidated to the Munich site. In addition to the  Software 
Development and  Finance  departments,  the production  of  nanoparticles  and 
NanoActivators(TM) remained at  the Company's headquarters  in Berlin. At  the 
same time, early-stage research activities were substantially reduced and  can 
be outsourced as needed. As a  result, the Company expects seven-digit  annual 
savings (in euros) in these areas.

In the short to medium  term, MagForce will use  the majority of its  finances 
for the post-marketing study of glioblastoma, which will greatly contribute to
the Company's strategic  expansion. MagForce will  also focus on  establishing 
the NanoTherm® therapy on the market with its distribution partners, including
DELRUS and TekGrup,  its development  partners, such  as the  Mayo Clinic  for 
gastro-intestinal  tumors  and  the   Department  of  Urology  at   Düsseldorf 
University for prostate cancer, as well as the production of nanoparticles.

Result of operations, net assets and financial position

Before starting the post-marketing study and in accordance with  expectations, 
MagForce did not  generate any revenues  with the NanoTherm®  therapy in  2012 
(previous  year:  €41  thousand).  As  a  result  of  restructuring  measures, 
operating expenses  were reduced  to €5,846  thousand (previous  year:  €7,022 
thousand), mainly due to lower personnel costs. As a result, the Company  also 
generated a lower net loss for  the year with €5,717 thousand (previous  year: 
€8,586 thousand). This means  that MagForce's performance  in 2012, also  with 
regard to costs, was as forecasted in its report from the previous year.

The net  loss was  partially offset  by cash  inflows from  capital  increases 
amounting to €5,455  thousand in the  reporting year. In  2012, the  Company's 
share capital  was  successively  increased  from  €4,127thousand  to  €5,316 
thousand by issuing new shares against cash contributions. As of the reporting
date, other liabilities  increased by  a total  of €16,081  thousand from  the 
takeover of loan receivables from Nanostart AG and Venture Tech GmbH by Avalon
Capital One GmbH.

Cash flow from  operating activities  amounted to  €-5,473 thousand  (previous 
year: €-4,537).  Cash flow  from investing  activities totaled  €-40  thousand 
(previous  year:  €-1,258  thousand)  while  the  cash  flow  from   financing 
activities amounted to €6,187 thousand (previous year: €4,816 thousand). As of
the reporting date, December 31, 2012, the Company's cash and cash equivalents
amounted to €689thousand (previous year: €14 thousand).

Owing to the net  loss, MagForce's balance sheet  was indebted as of  December 
31, 2012. However, the Company announced  a capital increase against cash  and 
noncash contributions  in  December  2012  and  successfully  generated  €33.5 
million from its implementation in March 2013. This underscores the trust  and 
confidence that international  investors have in  MagForce technology and  the 
MagForce team. The  Company now has  adequate capital for  achieving its  next 
milestones. The  Company's  liquidity  totaled  €17.6  million  following  the 
capital increase.

Outlook 2013

Due to the early  phase of commercialization for  its innovative therapy,  the 
Company cannot be sure  whether increasing revenues can  be realized in  2013. 
The Company  expects  to  generate  an  increasing  net  loss  from  operating 
activities as compared to 2012 as part of its roll-out plan. This will  mainly 
be due to the start of the clinical post-marketing study and preparations  for 
market entry in additional  countries. This corresponds  to the objectives  of 
the series  of measures  passed  in 2012,  the  related restructuring  of  the 
Company and the focus on strategically important value drivers.

The Company expects an increased negative cash flow from operating  activities 
in the fiscal year 2013, which is largely due to the reduction of  liabilities 
and financing  of  measures in  connection  with establishing  the  NanoTherm® 
therapy. Cash flow from financing activities  will be clearly positive due  to 
the capital  increase from  March  2013, despite  the  repayment of  all  loan 
liabilities amounting to €15.9 million.

About MagForce AG

MagForce AG is a leading medical  device company in the field of  nanomedicine 
in oncology.  The  Company's  proprietary, NanoTherm^®  therapy,  enables  the 
targeted treatment of solid tumors through the intratumoral generation of heat
via activation  of superparamagnetic  nanoparticles. NanoTherm^®,  NanoPlan^®, 
and NanoActivator(TM) are components of the therapy and have received  EU-wide 
regulatory approval  as medical  devices for  the treatment  of brain  tumors. 
MagForce, NanoTherm^®,  NanoPlan^®, and  NanoActivator(TM) are  trademarks  of 
MagForce  AG  in  selected  countries.  For  more  information,  please  visit


This release may contain forward-looking statements and information which  may 
be  identified  by  formulations  using  terms  such  as  "expects",   "aims", 
"anticipates", "intends", "plans", "believes", "seeks", "estimates" or "will".
Such forward-looking  statements are  based on  our current  expectations  and 
certain  assumptions,  which  may  be  subject  to  a  variety  of  risks  and 
uncertainties. The results actually achieved by MagForce AG may  substantially 
differ  from  these  forward-looking   statements.  MagForce  AG  assumes   no 
obligation to update these  forward-looking statements or  to correct them  in 
case of developments, which differ from those, anticipated.

Anne Hennecke
MC Services AG

T +49 89 210228-18
F +49 89 210228-88
M +49 151 12 555 759


MagForce_Press Release_June 27, 2013


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MagForce AG
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