Biotie Therapies - Company Announcement

Biotie and Synosia to Combine to Create a Leading CNS Development Company, Conference Call Tuesday, 11 January, 3:00 p.m. Central European Time

BIOTIE THERAPIES CORP. STOCK EXCHANGE RELEASE  11

 January 2011 at 00.55 a.m. (Helsinki time)

Biotie and Synosia to Combine to Create a Leading CNS Development Company,
Conference Call Tuesday, 11 January, 3:00 p.m. Central European Time

Biotie Therapies Corp. ("Biotie" or "Company", NASDAQ-OMX; BTH1V) and Synosia
Therapeutics Holding AG ("Synosia") jointly announce today the signing of a
combination agreement through which Biotie will issue 161,448,371 shares to the
shareholders and warrant holders of privately-owned Synosia in an acquisition of
the entire issued share capital and outstanding warrants of Synosia (the"Transaction").

The combined entity includes a promising pipeline of nine clinical-stage drug
candidates; a significant international presence with operations in Finland, The
United States and Switzerland, and an experienced management team and Board of
Directors.

The Transaction remains subject to approval by the extraordinary general meeting
("EGM") of shareholders of Biotie to be held on 1 February 2011.

The combined clinical development pipeline includes nalmefene, Biotie's Phase 3
product candidate for the treatment of alcohol dependence, which recently
reported positive results from the first two Phase 3 trials conducted by its
partner Lundbeck and is on track for submission for approval in Europe in the
second half of 2011. Synosia brings a broad pipeline of innovative central
nervous system (CNS) product candidates and a recently announced partnership
with UCB Pharma SA ("UCB") that included a $20 million equity investment and has
potential for $725 million in milestone payments plus royalties. This
collaboration covers SYN-115, a novel adenosine A2a receptor antagonist for
Parkinson's disease in Phase 2 and SYN-118, a potential first-in-class
hydroxyphenyl-pyruvate dioxygenase (HPPD) inhibitor intended for movement
disorders also in Phase 2.

Timo Veromaa, President and Chief Executive Officer (CEO) of Biotie commented:"We are very excited to announce this compelling business combination, bringing
together an outstanding pipeline and complementary drug development expertise.
Through this transaction we establish Biotie as a global leader in CNS drug
development."

Ian Massey, President and CEO of Synosia stated: "We are enthusiastic to join
forces with Biotie and confident that the combined entity has the right
capabilities and infrastructure to maximize the value for shareholders and
deliver innovative products to patients."

About the New Organization

Under the combination agreement, Timo Veromaa, will continue as President and
CEO of Biotie. Synosia's CEO, Ian Massey, will become Chief Operating Officer
and President, US Operations, a newly created position.

Synosia's Chief Medical Officer (CMO), Stephen Bandak, will become Biotie's CMO.
Chris Piggott, Biotie's Chief Business Officer will continue in this role in the
combined entity.

Biotie's Chief Financial Officer (CFO), Thomas Taapken, will continue in his
role through the closing of the transaction and until 1 April 2011, when he will
leave the Company for personal reasons. Ulla Sjöblom, Biotie's Vice President,
Finance, will serve as acting CFO from 1 April 2011 until a new CFO is
appointed.

It will be proposed at Biotie's EGM in February that Biotie's Board of Directors
is augmented by the addition of the following Synosia board members: Brad
Bolzon, Ismail Kola, Guido Magni and Andy Schwab.

In addition, Bill Burns, until recently CEO of Roche Pharmaceuticals, will be
proposed to join Biotie's board.  Bill led the global pharmaceuticals division
for eight years through some of its most significant milestones, including the
short-form merger acquisition of Genentech.

All these individuals have given their consent to stand for election at the
upcoming EGM.

It is intended that Peter Fellner will continue as Chairman of Biotie's Board of
Directors and that Brad Bolzon will serve as Deputy Chairman. Pauli Marttila and
Riku Rautsola have decided to step down from the Biotie board at the EGM.

Biotie's Chairman, Peter Fellner stated: "We all thank Pauli Marttila and Riku
Rautsola for their valuable contribution to the company during their many years
of service and wish them well."

Brad Bolzon, Chairman of Synosia's Board of Directors, paid tribute to those who
had supported Synosia through its rapid growth: "We have benefitted from an
outstanding board of seasoned investors in life sciences and an experienced
management team, who together established a new paradigm of efficient drug
development in CNS. We look forward to being part of this exciting new entity."

The Boards of Directors of both Biotie and Synosia unanimously support the
proposed combination of companies.

The EGM is to be convened for 1 February 2011 to resolve on the issuance of new
shares in Biotie in connection with the Transaction and to take certain other
decisions required for the completion of the Transaction. Biotie will publish an
invitation to the EGM separately which will contain full details of the proposed
resolutions. Existing Biotie's shareholders, representing more than thirty (30)
per cent of the Company's total number of votes, have agreed to vote in the EGM
in favor of the Transaction.

Financial Information

Biotie reported revenues of EUR 1.5 million for the first three quarters of
2010. Liquid assets were EUR 8.9 million, as at 30 September 2010. Biotie's
research and development costs from continuing operations for the same period
amounted to EUR 4.4 million.

Synosia reported revenues of EUR 1.1 million and liquid assets of EUR 34.6
million for the same period, and had research and developments costs of EUR 8.1
million.

On a pro forma basis, the combined entity would have had revenues of EUR 2.6
million from continuing operations in accordance with IFRS in the first three
quarters of 2010. On a combined basis, liquid assets without pro forma or IFRS
adjustments would have been EUR 43.5 million as at the end of September 2010.

Certain debt repayments will be made by Synosia prior to the completion of the
transaction, which will reduce liquid assets on a combined basis by
approximately EUR 8.8 million after the completion of the transaction.

Research and development costs incurred for the continued operations on a
combined basis for the first three quarters of 2010 would have been EUR 12.5
million without pro forma or IFRS adjustments. Biotie earnings per share will be
affected by the transaction as the revenues and results of Synosia and Biotie
are combined to consolidated financial statements, and on the other hand as
Biotie will issue new shares to the shareholders of Synosia.

The unaudited pro forma financial information on Biotie for the nine months
ending on 30 September 2010 and the full year 2009 will be available in the
listing prospectus intended to be published by Biotie on or about 1 February
2011.

About the Combined Pipeline

The combined product pipeline represents a strong and balanced portfolio of
novel drugs for diseases with high unmet medical need. Key features are
summarized below:

_ Nalmefene: Novel, oral opioid receptor antagonist in Phase 3 clinical trials
with partner Lundbeck. As-needed dosing offered by nalmefene could dramatically
alter the way alcohol dependence is treated. Recent results from the first two
of a total of three Phase 3 trials reported positive results in helping patients
reduce alcohol consumption. A final Phase 3 trial (ESENSE2) is expected to
complete Q2 2011.

_ SYN-115: Potent and selective inhibitor of the adenosine A2a receptor with
class-leading profile for the treatment of Parkinson's disease. SYN-115 is the
first potential new mechanism in 20 years in Parkinson's with the potential to
impact motor and non-motor symptoms and be disease modifying. Phase 2a completed
successfully and Phase 2b trial planned to start H1 2011. This program is
partnered with UCB.

_ SYN-118 (nitisinone): Already approved and marketed product for an orphan
disease indication (Orfadin®) by Swedish Orphan Biovitrum. The combined entity
will have rights outside orphan disease indications and plans to leverage this
product as a new treatment for Parkinson's disease that could be complementary
to SYN-115. A placebo-controlled Phase 2a study in Parkinson's disease is
ongoing with data expected H1 2011. UCB has an option to license this compound.

_ SYN-120: Orally available inhibitor of 5-HT6 receptors in the CNS with
potential to be a best-in-class treatment for cognitive disorders, such as
Alzheimer's disease. This product has completed single and multiple ascending
dose Phase 1 studies and is currently in studies to establish therapeutic dose
due to report in H2 2011. Roche has an opt-in right after completion of the
ongoing studies.

_ SYN-114: Orally bioavailable potent and selective antagonist of the 5-HT6
receptor. SYN-114 has completed Phase 1 single and multiple ascending dose
studies and is a back-up compound to SYN-120.

_ SYN-117 (nepicastat): Orally available inhibitor of dopamine metabolism
(dopamine betahydroxylase) in Phase 2 trials for post-traumatic stress disorder
which are funded by the US Department of Defense.

_ SYN-111 (rufinamide): Sodium channel blocker marketed by Eisai as an
adjunctive therapy for Lennox Gastaut Syndrome. The combined entity will seek
opportunities to evaluate this compound for the treatment of bipolar disorder.

_ VAP-1 antibody: First-in-class monoclonal antibody targeting vascular adhesion
protein-1 (VAP-1). The product is well tolerated and has shown encouraging
activity in Phase 1b trials for rheumatoid arthritis. Preparations for Phase 2
development are ongoing. In parallel, Biotie is considering potential
partnerships for this product.

_ Ronomilast: A Phase 2 ready, potentially best-in-class phosphodiesterase-4
(PDE4) inhibitor for chronic obstructive pulmonary disease (COPD). Biotie is
considering potential partnerships for this product.

About the Transaction

New Shares to be issued and transaction to be approved by the EGM

In consideration of Biotie acquiring the entire issued share capital and
outstanding warrants of Synosia, Biotie will issue 161,448,371 new shares to
Synosia shareholders and warrant holders (the "Consideration Shares"). Based on
Biotie's closing share price on 10 January 2011 of EUR 0.58, the Transaction is
valued at EUR 93.6 million. In addition, 14,912,155 shares will be issued to
Synosia to be held in treasury and used to satisfy future potential exercise of
Synosia's options (the "Additional Treasury Shares" and together with the
Consideration Shares, the "New Shares").

Subsequent to the subscription and registration of the New Shares, the aggregate
number of Biotie shares in issue will be 352,364,457. The following table
outlines the pre- and post-transaction capitalization structure:

Biotie Pre-transaction Capitalization

Biotie's shares and votes outstanding 161,256,847

Biotie's  treasury shares             14,747,084

Biotie's total shares in issue        176,003,931



New Shares to be Issued

Consideration Shares to be issued to Synosia shareholders and        161,448,371
warrant holders

Additional Treasury Shares to be issued to Synosia in connection     14,912,155
with option scheme

Total New Shares                                                     176,360,526



Post-transaction Capitalization (prior to conveyance of shares to Synosia option
holders)

Total shares and votes post-Transaction (excluding treasury shares   322,705,218
held by Biotie's group companies)

Total shares post-Transaction                                        352,364,457



The Transaction is subject to the necessary resolutions passed by Biotie
shareholders at the EGM to be held on 1 February 2011, and certain additional
conditions described below. The Transaction will be completed as soon as the EGM
has passed the resolutions necessary for the completion of the Transaction,
provided that also the other prerequisites for the completion are fulfilled.
Once registered with the Finnish Trade Register, the New Shares will rank pari
passu in every respect with the existing shares in Biotie.

Subsequent to the completion of the Transaction, Biotie will apply to list the
New Shares on NASDAQ OMX Helsinki Oy. Trading of the New Shares is expected to
commence after their registration with the Finnish Trade Register. Biotie will
publish a prospectus in relation to the listing of the New Shares on or about 1
February 2011. The prospectus will be available in the Finnish language on
Biotie's web site, on or about 1 February 2011 and at the offices of Biotie, in
Turku, Finland.

Execution of Combination Agreement

Biotie, Synosia and Synosia's shareholders and warrant holders have today
entered into a Combination Agreement, which sets out the terms and conditions of
the Transaction. The Combination Agreement includes conditions to the completion
of the Transaction. Such conditions include (i) the availability of necessary
authorisations, (ii) the approval by the Finnish Financial Supervisory Authority
of the prospectus in relation to the listing of the issued shares, (iii) the
absence of breach of agreement or material adverse effect on the respective
assets, businesses, financial condition or results of operation of Biotie and/or
Synosia,  (iv) Synosia's option plan having been amended to reflect the transfer
of Biotie's shares instead of Synosia shares to option holders upon exercise of
the option rights, and (v) certain other conditions. The Combination Agreement
also contains stipulations governing the conduct of Biotie and Synosia prior to
the completion of the Transaction, the cooperation of the parties for the
purposes of preparing necessary filings and documents to complete the
Transaction and the possible termination of the Combination Agreement for
example on the basis of material adverse effect in the respective businesses of
Biotie or Synosia.

In the Combination Agreement, it is agreed that the shares issued to Synosia
shareholders and warrant holders may not be transferred during a period of
twelve (12) months from the completion of the Transaction without the prior
written consent of the Board of Directors of Biotie, however provided that the
above transfer restrictions do not apply in relation to certain situations such
as offers made for Biotie shares that would result in the offer or obtaining
control of Biotie, or disposals required by any law, competent authority or
court order.

Expected Timetable of Certain Events

10 January 2011           Combination Agreement signed

10 January 2011           Invitation to the EGM of Biotie

1 February 2011           EGM of Biotie

(approx.) 1 February 2011 New Shares subscribed

(approx.) 1 February 2011 Listing Prospectus will be available

(approx.) 2 February 2011 New Shares registered with the Finnish Trade Register

(approx.) 3 February 2011 Admission to trading of the New Shares



Advisers

Nomura Code Securities Ltd. have acted as financial advisers to Biotie, while
Hannes Snellman Attorneys Ltd., Vischer Ltd and Morrison & Foerster LLP have
acted as the company's legal advisers.

Wedbush PacGrow Life Sciences have acted as financial advisers to Synosia, while
Bird & Bird Attorneys Ltd. and Blum & Grob Attorneys at Law Ltd have provided
legal advice to Synosia in connection with the transaction.

About Biotie

Biotie is a specialised drug development company focused on central nervous
system and inflammatory diseases. It has several innovative small molecule and
biological drug candidates at different stages of clinical development. Biotie's
products address diseases with high unmet medical need and significant market
potential, including addiction and broad range of inflammatory conditions such
as rheumatoid arthritis or chronic obstructive pulmonary disease (COPD). The
most advanced product nalmefene for alcohol dependence is currently in Phase 3
clinical development by licensing partner H. Lundbeck A/S. Biotie is based in
Turku, Finland and its shares are listed on NASDAQ OMX Helsinki Ltd.

For more information, please refer towww.biotie.com

About Synosia

Please see Appendix 1 below for more information on Synosia.

In Turku, 10 January 2011

Biotie Therapies Corp.

Board of Directors

For further information, please contact:
Virve Nurmi, Investor Relations Manager
tel. +358 2 274 8911, e-mail: virve.nurmi@biotie.com

www.biotie.com

Distribution:
NASDAQ OMX Helsinki Ltd
Main Media

Contact Information

Biotie Therapies Corp.: Timo Veromaa, Tel: +358 2274 8901

Synosia Therapeutics Holding AG: Julie Walters, Tel: +44 (0) 775 362 6967

Nomura Code Securities Ltd.: Uli Kinzel, Tel: +44 20 777 61200

Conference call

An analyst and media conference call will take place on Tuesday, January
11, 2011 at 3.00 p.m. Central European Time. The conference call will be held in
English.

Callers may access the conference directly at the following telephone numbers:
US: +1 212 444 0481, UK: +44 (0)20 7138 0824  and Finland: +358 (0)9
2319 4345  access code 8664658. Lines are to be reserved ten minutes before the
start of conference call. The event can also be viewed as a live webcast
atwww.biotie.com. An on demand version of the conference will be published on
Biotie's website later during the day.

In case you need additional information or assistance, please contact: Virve
Nurmi, IR Manager Biotie Therapies, Tel +358 2 2748 911,
emailvirve.nurmi@biotie.com


Appendix 1 - Information on Synosia

Synosia Therapeutics Holding AG is a biopharmaceutical company focused on
developing and commercialising innovative and clinically-differentiated products
for neurodegenerative and psychiatric disorders. Synosia was founded around a
portfolio of clinically enabled compounds licensed from Roche, Novartis, and
Syngenta. Over the last four years, Synosia has conducted 10 clinical studies on
five compounds and, based on the data obtained, has prioritised the portfolio of
compounds to progress into more advanced stages of development.

Synosia is now focusing primarily on the development of SYN-115 and SYN-118 for
Parkinson's disease, and SYN-120 for the treatment of cognitive disorders
associated with Alzheimer's and schizophrenia.

Synosia Therapeutics Holding AG licensed SYN-115 from Roche and SYN-118 from
Syngenta and maintains development and commercialisation rights to these
programmes.

SYN-120 was licensed from Roche and Roche retains an opt-in right on this
compound.

On 12 October 2010, Synosia Therapeutics Holding AG announced a strategic
partnership with UCB where Synosia has granted UCB a license for exclusive,
worldwide rights to SYN-115 and an option to rights to, SYN-118, for non-orphan
indications. Under the agreement, UCB made an equity investment totalling $ 20
million in Synosia Therapeutics Holding AG, and agreed to pay up to $ 725
million in potential regulatory and commercial milestone payments.

Synosia Therapeutics Holding AG is domiciled in Basel, Switzerland. All
significant operations of Synosia Therapeutics Holding AG are conducted by its
wholly owned subsidiaries, Synosia Therapeutics, Inc. based in the United States
and Synosia Therapeutics AG based in Switzerland. The commercial registry code
of Synosia Therapeutics Holding AG is CH-270.3.013.998-7 and the accounting
period is a calendar year.

The management of Synosia Therapeutics Holding AG consists of the following
persons:

Name                     Year of birth Position          Joined company

Ian Massey, D.Phil.      1950          President and CEO 2006

Steve Bandak, MB BS MRCP 1950          CMO               2007



On 30 September 2010, Synosia Therapeutics Holding AG and its subsidiaries had
17 employees.

Prior to the transaction, the largest shareholders of Synosia Therapeutics
Holding AG by means of basic equity holdings are:

Funds owned or managed by Versant Ventures        21.3%

Funds owned or managed by UCB                     19.6%

Funds owned or managed by Novo A/S                16.3%

Funds owned or managed by Abingworth Management   10.4%

Funds owned or managed by 5AM Ventures            10.4%

Funds owned or managed by Investor Growth Capital 9.5%

Funds owned or managed by Aravis                  6.0%

Other                                             6.5%



In connection with the transaction, the distribution of the new shares to be
issued to Synosia's shareholders and warrant holders is based on their relative
holdings in Synosia Therapeutics Holding AG. In such a distribution, the
following groups may receive a quantity of shares in Biotie that corresponds to
more than 5% of the total number of shares and votes in Biotie after the
transaction:

Funds owned or managed by Versant Ventures
Funds owned or managed by UCB
Funds owned or managed by Novo A/S
Funds owned or managed by Abingworth Management
Funds owned or managed by 5AM Ventures

The aforementioned estimate is based on the market value of Biotie's shares at
the time of signing of the Combination Agreement.

Certain financial information regarding Synosia

The following table presents selected financial information on Synosia as at and
for the nine months ended on 30 September 2010, as at and for the six months
ended on 30 June 2010 and 2009 and as at and for the financial years ended on
31 December 2009, 2008 and 2007. This information has been derived from
Synosia's unaudited interim financial reports and audited financial statements
for the corresponding financial periods.

Synosia's unaudited interim financial statements as at and for the nine months
ended on 30 September 2010 and as at and for the six months ended 30 June 2010
(with comparative information for the six month period in 2009) and Synosia's
audited financial statements as at and for the years ended 31 December 2009 and
2008 (with comparative information for 2007), have been prepared in accordance
with accounting principles generally accepted in the United States of America
(US GAAP).

The figures presented in this stock exchange release, including the financial
information, have been subject to rounding adjustments. Accordingly, in certain
instances, the sum of the numbers in a column or row may not conform exactly to
the total figure given for that column or row. In addition, certain percentages
presented in this stock exchange release reflect calculations based upon the
underlying figures prior to rounding and, accordingly, may not conform exactly
to the percentages that would be derived if the relevant calculations were based
upon the rounded numbers.

The exchange rates used to translate CHF to euros are as follows: average rate
for 1 January to 30 September 2010 of 1.400217 for income statement data and
closing rate at 30 September 2010 of 1.3287 for the balance sheet data.

Income Statement Data

             1 January - 1 January -
             30 Sep-     30 Sep-     1 January -            1 January -
             tember      tember      30 June                31 December

             2010        2010        2010          2009     2009   2008   2007

             (un-        (un-        (un-          (un-
             au-         au-         au-           au-      (au-   (au-   (au-
             dited)      dited)      dited)        dited)   dited) dited) dited)

             (EUR
             in          (CHF in
             thousands)  thousands)

                         (US GAAP)



Revenues

Partnering
revenue      1,139       1,595    -       -        -        -        -

Grant
revenue      67          94       -       -        -        -        -

Total
revenues     1,206       1,689    -       -        -        -        -



Operating
expenses

Research
and
develop-
ment         8,073       11,304   6,174   7,031    12,771   13,882   7,464

General
and
adminis-
trative      2,381       3,334    1,965   2,559    3,674    7,308    4,639

Total
operating
expenses     10,454      14,638   8,139   9,590    16,445   21,189   12,103



Operating
loss         (9,248)     (12,949) (8,139) (9,590)  (16,445) (21,189) (12,103)



Interest
income       21          29       25      83       131      439      978

Interest
expense      (915)       (1,282)  (904)   (995)    (1,912)  (1,342)  (43)

Other
income/
(expense)    (2,249)     (3,149)  431     375      (106)    (997)    14

Net Loss     (12,392)    (17,351) (8,587) (10,127) (18,332) (23,090) (11,154)

Less: Net
loss
attributable
to
the non-
controlling
interest     -           -        -       101      200      245      313

Net loss
attributable
to Synosia
Thera-
peutics
Holding AG   (12,392)    (17,351) (8,587) (10,026) (18,132) (22,845) (10,841)



Balance Sheet Data

             30        30        30            31
             September September June          December

             2010      2010      2010   2009   2009   2008   2007

             (un-      (un-      (un-   (un-
             a-        au-       au-    au-    (au-   (au-   (au-
             dited)    dited)    dited) dited) dited) dited) dited)

             EUR in
             thousands (CHF in thousands)

                       (US GAAP)





Assets

Current
assets       38,773    51,518    20,624 39,786 28,998 34,116 24,511

Non-
current
assets       88        117       160    256    197    300    137

Total
Assets       38,861    51,635    20,784 40,042 29,195 34,415 24,648



Liabilities,
Minority
Interest
and
Share-
holders'
Equity

Current
liabilities  11,791    15,667    8,961  4,735  6,080  3,353  1,795

Non-
current
liabilities  6,228     8,275     7,974  14,583 10,712 16,171 563

Total
liabili-
ties         18,019    23,942    16,935 19,318 16,792 19,524 2,358



Total
Synosia
Thera-
peutics
Holding
AG
share-
holders'
equity       20,842    27,693    3,849  20,792 12,538 14,891 22,290

Non-
controlling
interest     -         -         -      (68)   (135)  -      -

Total
share-
hol-
ders'
equity       20,842    27,693    3,849  20,724 12,403 14,891 22,290



Total
liabili-
ties,
non-
controll-
ing
interest
and
share-
holders'
equity       38,861    51,635    20,784 40,042 29,195 34,415 24,648






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