PRESS RELEASE: MagForce aims to raise up to EUR33.5 million

MagForce AG / MagForce aims to raise up to EUR33.5 million . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.

* Capital increase against cash and noncash contributions by granting preemptive rights of up to a total of EUR33.5 million proposed for resolution by the General Shareholders' Meeting * Debt reduction and balance sheet restructuring planned

Berlin, Germany, December 19, 2012 - MagForce AG (Frankfurt, Xetra: MF6), a leading medical device company in the field of nanomedicine with a focus on oncology, today announced that the Company, with the approval of the Supervisory Board, has resolved a restructuring plan to safeguard MagForce's long-term existence.

Under the plan, the Company's share capital is to be increased by up to EUR18.6 million by granting preemptive rights to shareholders against cash and noncash contributions. The new shares will have a notional value of EUR1.00 and will be issued for EUR1.80. As part of the capital increase, some of the company's creditors are also to be granted the right to subscribe for new shares at an issue price of EUR1.80 per share against noncash contributions to the extent that shareholders' preemptive rights are disapplied for shares counting as fractions or that preemptive rights have not been exercised following the expiration of the subscription period for all shareholders, but only up to a maximum of 8,933,643 new shares. The rights will not be traded on the stock exchange. The planned capital measures will be proposed to MagForce's shareholders at an extraordinary General Shareholders' Meeting in Berlin on January 25, 2013.

In the short to medium term, MagForce will use part of these cash funds to finance the post-marketing glioblastoma study.

As well as financing its operating business, the Company plans to repay loans in the amount of EUR16.1 million to its primary creditors. In the event that this amount is not raised by the cash capital increase, the Company's primary creditors have agreed to convert their loans to equity as part of a noncash capital increase.

The Company considers the debt reduction and balance sheet restructuring vital for safeguarding the long-term existence of MagForce AG. The Company is confident to meet the General Shareholders' Meeting's approval on January 25, 2013.

About MagForce AG MagForce AG is a leading medical technology company in the field of nanomedicine in oncology. The Company's proprietary, NanoTherm® therapy, enables the targeted treatment of solid tumors through the intratumoral generation of heat via activation of magnetic nanoparticles. NanoTherm®, NanoPlan®, and NanoActivator(TM) are components of the therapy and have received EU-wide regulatory approval as medical devices for the treatment of brain tumors. MagForce, NanoTherm®, NanoPlan®, and NanoActivator(TM) are trademarks of MagForce AG in select countries. For more information, please visit www.magforce.com.

Disclaimer This release may contain forward-looking statements and information which may be identified by formulations using terms such as "expects", "aims", "anticipates", "intends", "plans", "believes", "seeks", "estimates" or "will". Such forward- looking statements are based on our current expectations and certain assumptions, which may be subject to a variety of risks and uncertainties. The results actually achieved by MagForce AG may substantially differ from these forward-looking statements. MagForce AG assumes no obligation to update these forward-looking statements or to correct them in case of developments, which differ from those, anticipated.

Contact: Anne Hennecke MC Services AG

T +49 89 210228-18 F +49 89 210228-88 M +49 151 12 555 759 Email: anne.hennecke@mc-services.eu

MagForce_Press Release_Financing: http://hugin.info/143761/R/1666359/540803.pdf

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Source: MagForce AG via Thomson Reuters ONE [HUG#1666359]

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MagForce AG Max-Dohrn-Str. 8 Berlin Germany

WKN: A0HGQF;ISIN: DE000A0HGQF5; Listed: Open Market (Freiverkehr) in Frankfurter Wertpapierbörse;

http://www.magforce.de/english/home1.html (END) Dow Jones Newswires

   December 19, 2012 09:41 ET (14:41 GMT)- - 09 41 AM EST 12-19-12