TRANSGENE : Creates a Subsidiary in China and signs Immunocan

Transgene Creates a Subsidiary in China and signs Immunocan, a European Commission Subsidized International Scientific Cooperation Program, with Chinese and European Academic Laboratories

Transgene Biopharmaceuticals Technology (Shanghai) Co. Ltd, 100% owned by

Transgene SA, to run academic collaborations in the Chinese territories

Strasbourg, France, January 30, 2012- Transgene (Euronext Paris: FR0005175080) today announced two new milestones regarding its activities in China:

Creation of Transgene Biopharmaceuticals Technology (Shanghai) Co. Ltd:
Based in Shanghai with a staff of 5 persons for its debut in 2012, Transgene Biopharmaceuticals Technology (Shanghai) Co. Ltd is a Wholly Foreign Owned Enterprise ("WOFE") under the laws of the People's Republic of China. Research activities conducted by Transgene through Transgene Biopharmaceuticals Technology (Shanghai) Co. Ltd will mostly be academic and early stage.
Development of Transgene's more mature R&D programs for the Chinese market will be conducted in the context of Transgene Tasly (Tianjin) Biopharmecutical Co. Ltd, the 50/50 joint-venture formed in
2010 by Transgene with the Chinese pharmaceutical group Tianjin Tasly Pharmaceutical Co. Ltd.

Launch of international cooperation program Immunocan:

An important international scientific cooperation program coordinated by Transgene, called Immunocan (www.immunocan.org), has recently received approval from the European Commission as a FP7 (Seventh Framework Program) funded research program. Immunocan aims at increasing the translational medical research cooperation between European countries and China, and more particularly at conducting research to identify immunological characteristics in Chinese cancer patients as medical biomarkers for the personalized prognosis of patients. The Fudan University Shanghai Cancer Centre (China), the University of Copenhagen (Denmark), the IRCCS (Istituto Nazionale dei Tumori) Foundation (Italy) and the Medizinische Hochschule from Hannover (Germany) are associated in this collaborative program.
Immunocan will be conducted in the laboratories of the joint institute for cancer research of the Fudan University Shanghai Cancer Centre and Institut Mérieux ("FDUSCC-IM") in Shanghai, in which Transgene is also a partner. Under this FP7-sponsored program, the goal of the partners and of the European Commission is to build a Euro-Asian reference centre for medical and scientific research on cancer.

"China is important to Transgene's development strategy as we expect the local market to rapidly become one of the major biopharmaceutical markets" said Philippe Archinard, Chairman and CEO of Transgene. He added: "In parallel to the investments we will be making under our joint venture company with Tasly, we expect to invest further in discovery activities in this region so as to take advantage of the tremendous research effort being conducted there in state-of-the-art academic laboratories. These investments should have positive outcomes to the benefit of both Transgene and patients".

Société anonyme au capital de 72.500.404 € - R.C. Strasbourg B 317 540 581

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About Transgene:

Transgene, a member of the Institut Mérieux Group, is a publicly traded French biopharmaceutical company dedicated to the development of therapeutic vaccines and immunotherapeutic products in oncology and infectious diseases and has four compounds in Phase II clinical development: TG4010 and JX594/TG6006 having already completed initial Phase II trials, TG4001 and TG4040. Transgene has concluded strategic agreements for the development of two of its immunotherapy products: an option agreement with Novartis for the development of TG4010 to treat various cancers and an in-licensing agreement with US-based Jennerex, Inc. to develop and market JX594/TG6006, an oncolytic virus. Transgene has bio-manufacturing capacities for viral-based products. Additional information about Transgene is available at www.transgene.fr.

Disclaimer:

This press release contains certain forward-looking statements. Although the company believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those anticipated. In particular, the Company's ability to commercialize its first product depends on the continuing success of clinical studies, ongoing financing for further product developments and marketing launch, a positive response from the medical community regarding the product's costs and effectiveness. For a discussion of risks and uncertainties which could cause the company's actual results, financial condition, performance or achievements to differ from those contained in the forward-looking statements, please refer to the Risk Factors ("Facteurs de Risque") section of the Document de Reference prospectus, which is available on the AMF website (http://www.amf-france.org) or on Transgene's website (www.transgene.fr). This press release and the information contained herein do not constitute an offer to sell or a solicitation of an offer to buy or subscribe to shares in Transgene in any country.

Contacts:

Transgene MC Services

Philippe Archinard, Chairman & CEO Raimund Gabriel
Phone: [phone] Phone: [phone]
Stéphane Boissel, Executive Vice President & CFO Shaun Brown
Phone: [phone] Phone: [phone]
Elisabetta Castelli, Director IR Phone: [phone]

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