Credit Ratings From Moody's and Standard & Poor's Confirm Underlying
Strength and Positive Business Prospects

    GENEVA, Switzerland, July 13 /PRNewswire-FirstCall/ -- Serono (virt-x:SEO
and NYSE: SRA), the third largest biotechnology company in the world, today
announced that it had received credit ratings of A3 from Moody's and A- from
Standard & Poor's, both with a stable outlook.
    "These positive credit ratings are an excellent reflection of our
position in the top tier of biotech companies and clearly demonstrate our low
risk profile," comments Stuart Grant, Chief Financial Officer, Serono. "We've
achieved this result through our sound financial management, the underlying
strength of the business and our clear strategic direction for the company."
    According to both Moody's and Standard & Poor's, these ratings reflect
their confidence in the strength of Serono's solid and focussed portfolio of
biotech brands in its major therapeutic areas. The company also demonstrated
good patent protection and limited risk from biosimilars, along with a good
track record of generating royalty and licence income. Both agencies
confirmed Serono's solid cash generation, conservative financial guidelines,
and stable majority shareholder base.
    Note to Editors:
    Serono will report its Q2 results on 19 July 2005, 4.01pm, Eastern Time
    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 March 16, 2005. 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. Currently, there are approximately 30 ongoing development projects.
    In 2004, Serono achieved worldwide revenues of US$2,458.1 million, and a
net income of US$494.2 million, making it the third largest biotech company
in the world. Its products are sold in over 90 countries. 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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