SWX Swiss Exchange: Ad Hoc Publicity: Preliminary Investigation Of Serono SA Stayed

In late January 2006, the SWX Swiss Exchange announced that it had initiated a preliminary investigation of Serono SA with regard to a potential violation of Art. 72 of the Listing Rules ("Ad hoc publicity"). On the basis of this preliminary investigation, the SWX has concluded that Serono SA did not breach the provisions governing ad hoc publicity. The SWX has therefore stayed the proceeding.

The SWX examined whether Serono SA had breached the provisions of Art. 72 of the Listing Rules in connection with a discussion triggered by the 24 January 2006 issue of the Wall Street Journal Europe regarding the missed deadline for making offers for a possible takeover of Serono.

Under Art. 72 of the Listing Rules, price-sensitive facts are facts which are likely to result in substantial movements in the price of the securities. Mere rumours, however, are in general not deemed new facts within the meaning of Art. 72 of the Listing Rules.

According to Serono SA, the statement of the Wall Street Journal Europe mentioned above is a rumour, and hence there is no reason to assume that there has been a leak.

The SWX has therefore stayed the proceeding.