MorphoSys AG (FSE: MOR; Prime Standard Segment, TecDAX, OTC: MPSYY) announced today that it has received a milestone payment from Novartis in connection with the initiation of a Phase 1 clinical trial of a HuCAL antibody in the field of diabetic eye diseases. This becomes the ninth therapeutic antibody made using MorphoSys`s technologies that Novartis is evaluating in clinical trials.

The official start of the clinical trial, which will be conducted in research centers in Australia, is pending final approval by regulatory authorities there.

"The clinical output of our strategic alliance with Novartis has been remarkable so far. We are looking forward to seeing more programs with Novartis moving into the clinic in the months and years ahead," commented Dr. Marlies Sproll, Chief Scientific Officer of MorphoSys AG. "We are also very pleased that this is the third ophthalmology program within our collaboration to enter the clinical development stage."

MorphoSys`s collaboration with Novartis has resulted in nine clinical programs to date, four of which are in Phase 1 development, with another four programs in Phase 2 and one in Phase 3. In total, MorphoSys`s partnered and proprietary clinical pipeline currently comprises 21 unique antibody molecules which are being evaluated in more than 50 clinical trials.

About MorphoSys:
MorphoSys developed HuCAL, the most successful antibody library technology in the pharmaceutical industry. By successfully applying this and other patented technologies, MorphoSys has become a leader in the field of therapeutic antibodies, one of the fastest-growing drug classes in human healthcare.

Together with its pharmaceutical partners, MorphoSys has built a therapeutic pipeline of more than 80 human antibody drug candidates for the treatment of cancer, rheumatoid arthritis, and Alzheimer`s disease, to name just a few. With its ongoing commitment to new antibody technology and drug development, MorphoSys is focused on making the healthcare products of tomorrow. MorphoSys is listed on the Frankfurt Stock Exchange under the symbol MOR. For regular updates about MorphoSys, visit http://www.morphosys.com

HuCAL^®, HuCAL GOLD^®, HuCAL PLATINUM^®, CysDisplay^®, RapMAT^®, arYla^® and Ylanthia^® and 100 billion high potentials^® are registered trademarks of MorphoSys AG.

Slonomics^® is a registered trademark of Sloning BioTechnology GmbH, a subsidiary of MorphoSys AG.

This communication contains certain forward-looking statements concerning the MorphoSys group of companies. The forward-looking statements contained herein represent the judgment of MorphoSys as of the date of this release and involve risks and uncertainties. Should actual conditions differ from the Company`s assumptions, actual results and actions may differ from those anticipated. MorphoSys does not intend to update any of these forward-looking statements as far as the wording of the relevant press release is concerned.