GENEVA, Switzerland, March 31 /PRNewswire-FirstCall/ -- Serono (virt-x:
SEO and NYSE: SRA) announces today that the Board of Directors will propose
an increase in authorized share capital at the annual Shareholders' meeting
of April 25, 2006.
    The Board of Directors will propose to the Shareholders the creation of
an authorized share capital of CHF 190,471,500, allowing the Board to issue
up to 7,618,860 new bearer shares of CHF 25 nominal value each. This
authorized share capital would be valid for two years, until April 25, 2008.
    The strategic review announced in November 2005 is on-going and could
result in a sale of, merger of, or one or more acquisitions by, the company.
To provide the company with financing capacity to pursue such alternatives,
the Board of Directors of Serono propose to increase the authorized share
capital at the forthcoming annual Shareholders' meeting.
    There is no assurance that any transaction will be consummated.
    About the annual Shareholders' meeting
    The full text of the invitation to the annual Shareholders' meeting of
April 25, 2006 can be consulted on http://www.serono.com.
    Background material
    For free B-roll, video and other content for Serono and its products,
please visit the Serono Media Center http://www.thenewsmarket.com/Serono. You can
download print-quality images and receive broadcast-standard video digitally
or by tape from this site. Registration and video is free to the media.
    For Serono
    Some of the statements in this press release are forward looking. Such
statements are inherently subject to known and unknown risks, uncertainties
and other factors that may cause actual results, performance or achievements
of Serono S.A. and affiliates to be materially different from those expected
or anticipated in the forward-looking statements. Forward-looking statements
are based on Serono's current expectations and assumptions, which may be
affected by a number of factors, including those discussed in this press
release and more fully described in Serono's Annual Report on Form 20-F filed
with the U.S. Securities and Exchange Commission on February 28, 2006. These
factors include any failure or delay in Serono's ability to develop new
products, any failure to receive anticipated regulatory approvals, any
problems in commercializing current products as a result of competition or
other factors, our ability to obtain reimbursement coverage for our products,
the outcome of government investigations and litigation and government
regulations limiting our ability to sell our products. Serono has no
responsibility to update the forward-looking statements contained in this
press release to reflect events or circumstances occurring after the date of
this press release.
    About Serono
    Serono is a global biotechnology leader. The Company has eight
biotechnology products, Rebif(R), Gonal-f(R), Luveris(R), Ovidrel(R
)/Ovitrelle(R), Serostim(R), Saizen(R), Zorbtive(TM) and Raptiva(R). In
addition to being the world leader in reproductive health, Serono has strong
market positions in neurology, metabolism and growth and has recently entered
the psoriasis area. The Company's research programs are focused on growing
these businesses and on establishing new therapeutic areas, including
oncology and autoimmune diseases. Currently, there are more than 25 on-going
development projects.
    In 2005, Serono, whose products are sold in over 90 countries, achieved
worldwide revenues of US$2,586.4 million. Reported net loss in 2005 was
US$106.1 million, reflecting a charge of US$725 million taken relating to the
settlement of the US Attorney's Office investigation of Serostim. Excluding
this charge as well as other non-recurring items, adjusted net income grew
28.4% to US$565.3 million in 2005. Bearer shares of Serono S.A., the holding
company, are traded on the virt-x (SEO) and its American Depositary Shares
are traded on the New York Stock Exchange (SRA).

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