Deinove

Why is Deinove listing on the stock market?

On March 25, 2010, DEINOVE registered its "Document de Base" prospectus (reference number I.10-014) with the Autorité des Marchés Financiers (AMF, the French stock market regulator), with a view to stock market listing.

Stock market listing and the associated fund raising operation will enable us to accelerate the deployment of our bioethanol and green chemistry projects and consolidate the technological head-start which has earned the company its reputation.

What is DEINOVE's core business?

DEINOVE is an innovative greentech company dedicated to the discovery and development of new production processes for biofuels and building block chemicals. The company intends to show that ultra-robust, self-repairing bacteria from the genus Deinococcus (some of which can grow at temperatures above 40°C) can achieve better industrial and environmental performance levels than the brewer's yeast generally used to produce ethanol biofuel.

By developing revolutionary, profitable and environmentally friendly microbiological processes in the field of biomass conversion, biofuels and green chemistry, DEINOVE is at the heart of worldwide industrial efforts to set up biorefineries that can use non-food biomass and thus reduce our dependence on crude oil.

What are DEINOVE's key strengths?

Deinove's key strengths are constituted by the diverse set of skills needed to develop innovative technologies with major industrial advantages:

• Unique expertise in the screening, optimization and industrial exploitation of deinococci - natural, multifunctional bacteria with exceptional properties and which can potentially produce bioethanol from any type of biomass.
• Technologies with worldwide patent protection.
• Blue-chip industrial partners, such as TEREOS - a global player in sugar, starch and bioethanol production.
• Strategic positioning in large, fast-growing markets and potential for value creation.
• Innovation, i.e. the insight needed to spot opportunities to adapt our existing expertise to novel scenarios, such as the discovery of antibiotics.

What are deinococci?

The deinococci: 3 billion years of evolution and adaptation

• considerable natural biodiversity.
• the most robust living organism.
• the unique ability to reassemble its genome
• the capacity to incorporate genes from other species.

For more information:

http://www.deinove.com/en/research-and-development/deinococcus-sp.html

What technology is DEINOVE's know-how based on?

http://www.deinove.com/en/research-and-development/technology.html

What are DEINOVE's target markets?

DEINOVE is positioning itself in large, fast-growing markets which are looking for innovative solutions.

• The biofuels market: Deinove intends to optimize the production of first- and second-generation biofuels (produced from all types of biomass) via its collaborative Deinol project. The current global bioethanol market is thought to be worth over 38 billion dollars in 2009, with an expected growth rate of 10% per year over the next decade.
• The green chemistry market: thanks to its Deinochem project, Deinove intends to develop microbiological processes for producing building block chemicals of major interest for the chemical industry, and to replace the currently used petrochemical processes.
• The pharmaceutical market: with its Deinobiotics project, Deinove intends to leverage its exceptional collection of rare, unexplored microorganisms by isolating the antibiotics which are naturally produced by the deinococci. These new pharmaceutical compounds will help address the emerging issue of resistant microbial pathogens.

What is the DEINOL project?

This Deinol project is a major, Deinove-led collaborative effort with two top-rank academic labs (CNRS Montpellier and INSA Toulouse) and the Tereos group (with its SYRAL and BENP Lillebonne subsidiaries).

The Deinol project has received with €8.9 million in financial support from the Strategic Industrial Innovation programme run by Oséo, the French state innovation agency. The goal is to validate and quantify our bacteria's performance levels for bioethanol production in our high-priority development area, the biofuels market.

The Deinol project's objective is to open up (by 2014) new pathways for both improved production of ethanol from feed grain and access to "second-generation" production from lignocellulosic feedstocks in existing industrial installations and without the need for additional investment.

What is your development strategy?

Today, thanks to our staff's commitment and our collaborations with world-renowned academic labs, Deinove's work and exceptional results are positioning it as part of a new generation of hi-tech companies working for a greener future.

Our business model is based on three main drivers: biofuels, green chemistry (with the development of organic acid production processes) and the discovery of new antibiotics.

Our objectives are clear: for the DEINOL and DEINOCHEM projects, we intend to grant non-exclusive licences for our processes and technologies to industrial partners, in return for royalties and milestone payments. In the DEINOBIOTICS project, we expect to sign exclusive licensing agreements with pharma partners for the pre-clinical and clinical development of our lead compounds.

What is the IPO's timeline?

• April 6, 2010 : approval by the AMF
• April 7, 2010 : opening of the Public Offering and the Global Offering
• April 20, 2010 : closure of the Public Offering and the Global Offering
• April 21, 2010 : the share price is set
• April 26, 2010 : settlement and delivery of the shares
• April 27, 2010 : trading starts on Alternext

Where can I find the subscription form?

http://www.deinove.com/en/documentation.html

How should I fill out the subscription form?

Complete the form by entering your details and the number of your securities account.

• Indicate on the form that you intend to subscribe to DEINOVE's IPO by specifying the number of shares that you would like to obtain.
• Give the form to your broker or investment advisor.

Before making an investment decision, potential investors should be aware of the risks described in section 4 ("Facteurs de risque") of the "Document de Base" prospectus (reference number I.10-014, registered on March 25, 2010) and section 2 of the securities note.

Are there any tax advantages related to investment in Deinove?

Eligibility for the IRPP scheme

French taxpayers subscribing to IPOs on Alternext can deduct 25% of the amounts invested. Deductions are limited to €50,000 for an unmarried person and €100,000 for a married couple (as long as the shares are held for at least 5 years). The purchase orders must be submitted as part of the OPO. Your broker or investment advisor will then draw up a subscription certificate for DEINOVE's stock market listing.

Eligibility for the TEPA scheme

In some cases, subscription to DEINOVE's share capital increase also enables a reduction in France's private wealth tax under the terms of the TEPA finance bill. All requests for deductions in this respect must be sent to Dexia Securities or Invest Securities by the shareholder's broker as part of the global offering. These requests may be reduced.

What is an open price offering (OPO)? What share price do I pay?

Each investor must order a number of shares at a price within the suggested range. At the end of the offering, the price is fixed by comparing the purchase orders and the number of shares on offer. Lastly, only purchase orders above the set price will be honoured.