Pharming Group N.V. (Euronext: PHARM; “Pharming” or “the Company”) announced today its annual financial results for the period ended December 31, 2003. The Company also provided an update on the clinical development of recombinant human C1 inhibitor (“rhC1INH”) and the recently completed financing round of EUR 29.3 million.

In 2003, Pharming further strengthened the Company through limited financing transactions and focused product development activities for its lead product, rhC1INH. The Company made significant progress in the clinical development of this product in a Phase II clinical trial as well as on manufacturing through a partnership with DSM Biologics. The Company recruited Mr. J. Pieters, a former Amgen executive to join its Board of Supervisory Directors. The improved position of the Company led Euronext Amsterdam to grant the Company a listing on its Next-Economy segment. In early 2004, Pharming announced positive interim results from the Phase II trial of rhC1INH and completed the financing round of EUR 29.3 million to support its corporate operations, including the development of rhC1INH. As part of the financing round, the Company also cleared all convertible short terms loans on its balance sheet and is now virtually debt free.

For the period ended December 31, 2003, the Company’s total revenues were EUR 0.4 million compared to EUR 2.9 million in 2002. The revenues of Pharming were recognized from research and development revenues and existing government grants and subsidies. The difference in revenues is largely attributable to a
one time patent revenue of EUR 1.6 million in 2002. The total costs and expenses in 2003 were EUR 11.2 million compared to EUR 8.1 million (excluding benefits from restructuring) in 2002. The costs and expenses of the Company in 2003 were largely attributable to investments made in the clinical development and manufacturing of the Company’s lead product candidate rhC1INH. Cash costs were lower than the costs over the comparable period in 2002. Net cash used for operational activities amounted to approximately EUR 5.3 million compared to EUR 7.1 million in 2002. As a consequence, the net result of Pharming is a loss of EUR 11.0 million for the period ended December 31, 2003 compared to EUR 6.9 million excluding benefits from restructuring and other items in 2002 (see table on page 3). The difference in net result between the two periods is largely attributable to increased investments in rhC1INH.
Pharming’s cash position improved considerably in 2003. During this period, the Company raised EUR 9.0 million through previously disclosed financing transactions. As of December 31, 2003, the total assets of the Company are EUR 12.7 million. The Company’s cash liabilities reduced significantly to EUR 1.4 million from EUR 5.3 million at the end of 2002. Property, plant and equipment changes in 2003 mainly reflect regular depreciation charges and the effect of the decreased exchange rate of the US Dollar on the net book value of Pharming Healthcare, Inc. Inventories covering stock of bulk and purified rhC1INH ncreased slightly and are expected to be fully expensed in 2004. The total equity of the Company is EUR 5.7 million at December 31, 2003 compared to EUR 11.2 million at the end of 2002. The changes on the balance sheet mainly reflect
investments made for the production of rhC1INH and the release of batches of rhC1INH for use in clinical studies. In 2003, the Company fully repaid a commercial loan of EUR 1.4 million itemized under bank overdrafts.
"In 2003, Pharming improved its financial position and advanced its lead product towards phase II/III of clinical testing," said Dr. Francis Pinto, CEO of Pharming. “In 2004, we are off to a strong start by securing the capital required to bring our lead product to the market and we will now forge biotech partnerships with industry leaders for the further development of our products, including rhC1INH.”

Update on rhC1INH and Recent Developments In 2004, Pharming announced positive interim results from the Phase II trial of rhC1INH and completed a financing round of EUR 29.3 million. Based on the positive interim results of rhC1INH in the Phase II clinical study, the Company has initiated preparations for multi-center double blind placebo controlled Phase III studies for rhC1INH in Europe and for clinical studies in the United States. Pharming further strengthened its financial position by clearing current liabilities. Existing short term loans and borrowings amounting to EUR 5.6 million have been converted into equity as part of the completed financing round. With this conversion, the Company is now virtually debt free with the exc eption of a EUR 0.3 million
mortgaged loan and a normal amount of trade and other payables. The successful completion of these transactions has further improved the financial position of the Company through an increase in equity and reduction of liabilities.
A complete description of the financing round and the Company is presented in a prospectus. This prospectus and the annual report 2003 will be published on March 5, 2004. The capital secured by the Company will be used to support its corporate operations, including further development of its lead product and in limited amounts for its other products.