Kiel – Erkrath, June 19, 2006. PROTEO Biotech AG, a wholly owned subsidiary of PROTEO Inc., USA, has signed a cooperation agreement with ARTES Biotechnology GmbH. The aim of the agreement is the marketing of Elafin, the lead product of PROTEO Biotech AG / PROTEO Inc., in India, Egypt and Argentina. PROTEO has engaged ARTES with the marketing of Elafin in these territories.

The Indian healthcare market in particular offers enormous sales prospects. With an economic growth of around 8%, the subcontinent has the potential to be the fastest growing economy over the next ten years, with an immense backlog of demand in the medical sector.

In 2004 PROTEO acquired the exclusive license from ARTES to produce recombinant Elafin using the yeast strain Hansenula polymorpha. PROTEO’s CEO Birge Bargmann stated: “Because of the
extensive foreign contacts of ARTES Biotechnology GmbH, we expect a breakthrough in the application of Elafin, especially in view of faster regulatory approval procedures. The successful use of
Elafin in the new contract territories may even speed up its market launch in other countries.”

Both partners regard the intensification of their collaboration as a strategic alliance in which ARTES will initiate and supervise Elafin projects in the intended foreign markets, from marketing to
communication with clients.

“The cooperation with PROTEO is an excellent endorsement of the success of our technology and business strategy,” announced Dr. Michael Piontek, CEO of ARTES. “PROTEO Biotech AG from Kiel
is the first company in Germany, which after having received approval from the German Federal Institute for Drugs and Medical Products (BfArM), has successfully conducted a phase I clinical trial on
humans using a compound manufactured with our Hansenula-technology. Further Hansenula-based products from other licensees are already being marketed worldwide some of which have been approved by the US FDA.”