Innate Pharma exceeds objectives in obtaining € 20 million funding for first clinical trials Marseille, Saturday June 8, 2002

Major international investors commit € 5 million more than expected in one of Europe’s largest private financing rounds in biotechnology this year.

Innate Pharma, developer of novel anti-tumoral therapies, today announced it has raised a further € 20 million in a second round of financing, significantly more than the expected € 15 million. The company sees the success as a clear vote of confidence in its innovative technology based on the stimulation of innate immunity.

Co-leaders of the financing are Alta Partners, a Californian Venture Capital firm, and Axa Private Equity, an investment management company in the AXA Group with funds in approximately 50 countries. Other new investors include Pechel Industries (Paris), Gilde Biotech & Nutrition (Utrecht, Netherlands) and Innoveris (Marseille). The original investors (including first-round financing leader Sofinnova Partners, as well as GIMV and Auriga) have also significantly increased their investments for the second round of financing.

The scale of the funding gives Innate Pharma the best possible conditions in which to begin its clinical trials program and to pave the way for a second-generation product research program. The company aims to become a leader in the anti-cancer immunotherapy field and believes this can be achieved through its unique technological platform. Innate Pharma products to undergo clinical trial initially include:

• INNACELL-gd, is a cellular therapy based on the use of a novel chemical entity to activate a population of anti-tumoral cells (T g9d2 cells) ex-vivo. INNACELL-gd is to be initially aimed at fighting certain types of renal carcinoma.
• PHOPHOSTIM is an immunostimulatory medicine intended for systematic administration that also relies on the activation of T g9d2 cells. Phophostim will be initially developed in two cancer indications, multiple myeloma and renal carcinoma.
• KIROMAB is a cytotoxic monoclonal antibody that will enable the body to fight against certain cutaneous lymphomas (orphan indication), for which no satisfactory treatments currently exist.

“We are extremely encouraged by the fact we have exceeded our objectives for initial funding with the support of first-class international investors, particularly in the current economic climate,” said Hervé Brailly, Chairman and Chief Executive Officer of Innate Pharma. “It allows us to build our clinical trial program on solid foundations and shows how well our technology is perceived.”

“The current climate means we pay a great deal of attention to our investment criteria,” added Jean Deleage, a General Partner of Alta Partners. “The project presented to us by Hervé Brailly really attracted our interest and we decided to give it our full backing. We have already invested in a number of French biotechnology companies, two of which are listed companies.”

Dominique Senequier, President of the Board of Directors of AXA Private Equity said: “Three elements in particular caught our attention as we looked at Innate Pharma’s project proposal: the technology, business plan and market potential. The combination as presented by Innate Pharma matched our criteria for investment and we did not hesitate to lend our full support to this project.”

About Alta Partners

Alta Partners is a leading Venture Capital firm investing in biotechnology, life sciences and information technology companies. The Firm's partners have a combined experience of more than 120 years in financing and building high-growth companies. Alta Partners, formed in 1996, has approximately $1 billion under management. For further information on Alta Partners, please visit our web site at www.altapartners.com

About Innate Pharma

Innate Pharma S.A.S., ‘The Innate Immunity Company’, is a French biotechnology company developing immuno-modulating medications and cellular therapies based on the novel concept of ‘innate immunity’ – stimulation of non-conventional lymphocytes. The main field of research is cancerology, with the first clinical trials expected for 2002. The company was founded in 1999 by a group of four European scientists and two managers from the biotech industry. Companies investing in Innate are Sofinnova Partners, Auriga, GIMV, INSERM Transfert, Alta Partners, Axa Private Equity, Gilde Biotech and Nutrition, Pechel Industries and Innoveris.

For further information please contact:

Andrew Lloyd
Andrew Lloyd & Associates
Tel: +44 1273 675100
Fax: +44 1273 675400
allo@ala.com