Frankfurt/Berlin – March 5, 2008 – Together with its four consortium partners, Nanostart affiliate MagForce Nanotechnologies AG has reached the final round of "BioPharma – The Strategy Competition for Medicine of the Future," an initiative of the German federal government. With its initial proposal "Combination of innovative technology and therapeutic procedures for the targeted treatment of solid tumors," the consortium was among the ten selected out of 37 entries to proceed to the finals of the competition. In the next four months, MagForce will work together with its partners Bayer Vital GmbH (Oncology Business Unit), Kinaxo Biotechnologies GmbH, the Charité University Medical Center in Berlin, and the University Hospital of Cologne to develop and submit a detailed proposal.

From the ten finalists, up to five will be selected by the German Federal Ministry of Education and Research and provided with a total of EUR 100 million in funding to implement their ideas. The winners of the competition will be announced in the fall of 2008. The proposal submitted aims to significantly increase the response rate and cure rate in the treatment of solid tumors by investigating the combination of various treatment modalities.

This is precisely the approach which has in the past led to some of the most significant advances in fighting cancer. An example of a potential combination therapy to be investigated would be combining kinase inhibitors and angiogenesis inhibitors from Bayer with nanoparticle-based thermotherapy from MagForce. To determine the optimal combination of therapeutic approaches, biological interactions will be studied using sophisticated proteomics technology from Kinaxo. Those combinations which appear most promising will then be investigated in preclinical and clinical studies in cooperation with the University Hospital of Cologne and the Charité University Medical Center in Berlin.

"We were convinced from the outset by the idea and the approach of this competition. There are few opportunities like this to work together with other leading companies and research institutions in the area of oncology on such an exciting project, and to be able to exchange both general know-how and specific research findings with each other. We are especially delighted that we can now proceed to the final round to present our detailed proposal from which we hope to achieve significant advances in the treatment of cancers which are otherwise extremely difficult to treat," commented Dr. Uwe Maschek, CEO of MagForce Nanotechnologies AG.

About the competition:

"BioPharma – The Strategy Competition for Medicine of the Future," the new competition-based funding scheme of the German Federal Ministry of Education and Research, calls upon business consortiums to submit their best long-term concepts for the efficient design of the biopharmaceutical value-added chain. The intent is to identify biopharmaceutical research with economically relevant results and to accelerate its development into clinical application. The competition seeks not only the most promising ideas from a technological and therapeutic standpoint but also the most creative and productive partnerships.

About MagForce Nanotechnologies:

MagForce Nanotechnologies AG is the world’s leading company in the area of nanotechnology-based cancer treatment. Its patented therapy allows the targeted destruction of tumors using magnetic nanoparticles. MagForce’s nanotechnology represents a revolutionary approach to the future successful treatment of solid tumors.

About Nanostart:

Nanostart AG is the world’s leading nanotechnology investment company. The Frankfurt-based company provides venture capital financing for nanotechnology companies in various growth phases. It also provides the benefits of its experience and expertise to developers of financial instruments and to investors in the nanotechnology sector. For further information about the company, please visit www.nanostart.de

Disclaimer:

This notice constitutes neither an offer to sell nor a solicitation of offers to purchase or subscribe to securities. There will be no public offering of securities of Nanostart AG in conjunction with the existing listing of its shares in the “Entry Standard” segment of the regulated unofficial market (Freiverkehr) on the Frankfurt Stock Exchange. This notice does not constitute a securities prospectus. Neither this notice nor the information contained within is intended for direct or indirect distribution within the United States of America, Canada, Australia or Japan.

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