Galapagos announces 2006 full year results

    *         Revenues more than tripled to ¤35.2 M
*         Year-end cash position of ¤51.5 M
*         R&D spend increased from ¤8.9 M in 2005 to ¤15.9 M
*         Net loss per share increased from ¤0.73 in 2005 to ¤0.84
*         Established and progressed turn-key osteoarthritis alliance
  with GlaxoSmithKline
*         Created biotech leader in bone and joint disease through
  acquisition of ProSkelia
*         Built  top-tier service division with acquisitions of
  Inpharmatica and DPI assets

   Webcast audio conference presentation 9.30 CET at www.glpg.com

Mechelen, Belgium;  2 March  2007  - Galapagos  NV (Euronext  &  LSE:
GLPG), an integrated drug discovery company, announces its full  year
results for 2006 and provides market guidance for 2007.

In 2006,  Galapagos  succeeded  in  tripling  the  revenue  base  and
accelerating the product pipeline towards the clinic.  An active  M&A
strategy as  well as  organic growth  contributed to  these  results,
creating a drug  discovery company well  balanced between  profitable
services and  a  strong  product  pipeline.    Galapagos  made  major
progress in  the  bone  and  joint programs  and  signed  a  turn-key
alliance with GlaxoSmithKline in osteoarthritis.  The acquisition  of
ProSkelia added a  number of  advanced bone disease  programs to  our
portfolio as well as valuable expertise.  To fund the progression  of
the combined  development  programs  towards and  into  the  clinical
testing  phase,  the  Company  raised  ¤42  million  in  two  private
placements in 2006.  The  BioFocus DPI service division was  expanded
through  two   acquisitions  (the   assets  of   Discovery   Partners
International and Inpharmatica), to  become a world-leading  provider
of drug discovery services.

Key figures 2006
(¤  millions, except net loss per share)
Note: The drug discovery operations of Discovery Partners
International Inc were acquired 6 July 2006. Inpharmatica Ltd was
acquired on 6 December 2006, and  ProSkelia SASU on 22 December 2006.

+-----------------------------------------------------------------+
|                           | Dec 31, 2006 |         Dec 31, 2005 |
|---------------------------+--------------+----------------------|
| Revenues                  |         35,2 |                 11,2 |
|---------------------------+--------------+----------------------|
| Cost of sales             |        -19,5 |                 -4,8 |
|---------------------------+--------------+----------------------|
| Gross profit              |         15,6 |                  6,4 |
|---------------------------+--------------+----------------------|
| Other income              |          3,0 |                  0,1 |
|---------------------------+--------------+----------------------|
| R&D expenditure           |        -15,9 |                 -8,9 |
|---------------------------+--------------+----------------------|
| General  & administrative |        -12,0 |                 -3,5 |
|---------------------------+--------------+----------------------|
| Sales & Marketing         |         -1,9 |                 -0,4 |
|---------------------------+--------------+----------------------|
| Integration costs         |         -0,6 |                 -0,3 |
|---------------------------+--------------+----------------------|
| Other                     |          0,4 |                  0,2 |
|---------------------------+--------------+----------------------|
| Net loss for the period   |        -11,3 |                 -6,5 |
|---------------------------+--------------+----------------------|
| Basic loss per share (¤)  |        -0.84 |                -0.73 |
|---------------------------+--------------+----------------------|
|                           |              |                      |
|---------------------------+--------------+----------------------|
| Cash and cash equivalents |         51,5 |                 23,6 |
+-----------------------------------------------------------------+


"In 2006,  we  saw  the  BioFocus  DPI  service  division  deliver  a
profitable segment  result and  strong  organic revenue  growth,  far
outpacing market growth rates.   The acquisitions  made in 2006  will
solidify the division's  top tier  position and  the combined  entity
should secure continued growth,"  stated Onno van  de Stolpe, CEO  of
Galapagos.  "In our internal  drug discovery, we made great  progress
in all  of  our therapeutic  programs.    The alliance  with  GSK  in
osteoarthritis has  enabled  us  to  gear up  this  program  for  the
delivery of clinical candidates.  By acquiring ProSkelia, we obtained
a number  of bone  programs based  on clinically  validated  targets,
derisking our portfolio and increasing the chances of having multiple
programs in  the clinic  in 2008.     This year  we intend  to  fully
capitalize on the combined synergies of the acquisitions completed in
2006, placing us in prime position to become one of Europe's  leading
biotechs."

"The  major  steps  taken  in  2006  have  transformed  the   Company
financially  for   2007,"  said   David  Smith,   Galapagos'  CFO.
"Accordingly, we anticipate that  Group revenues in  2007 will be  in
the range of ¤54-58 million.  Furthermore, with a significant step up
in  R&D  investment  to  support  progression  of  our  clinical  and
pre-clinical programs in  2007, we  expect that full  year cash  burn
will be ¤20 million."

Operational overview

Drug discovery division
In our rheumatoid arthritis (RA)  program, lead compounds have  shown
good pharmacokinetic  properties  and  efficacy  in  relevant  animal
models of  the  disease.    These  molecules  also  show  substantial
protection against  bone  loss in  the  industry standard  RA  animal
models.  The compounds target  a proprietary kinase protein that  was
identified  using  the  Galapagos'  SilenceSelect  target   discovery
platform.  Based on these encouraging results, Galapagos  anticipates
initiation of pre-clinical studies in  2007, with the potential of  a
candidate drug entering clinical Phase I in 2008.

On 7 June 2006, Galapagos and GlaxoSmithKline's Center of  Excellence
for External Drug Discovery announced  a turn-key drug discovery  and
development alliance  in osteoarthritis  (OA) worth  ¤137 million  in
upfront, milestone,  and  equity  payments  and  up  to  double-digit
royalties on  commercial products.   Galapagos  will build  upon  its
existing OA program to deliver drug candidates from target through to
clinical Phase IIa  proof of  concept.  This  alliance validated  the
Company's target discovery  platform as  well as  our drug  discovery
capabilities.  In this program, Galapagos reported the achievement of
Proof of Principle  with compounds against  its proprietary  targets,
showing ex vivo protection of  bovine cartilage explants.   Galapagos
has several series of compounds in hit-to-lead and lead  optimization
that have potential to deliver  novel therapeutics for the  treatment
of OA.

With the  acquisition of  ProSkelia on  22 December  2006,  Galapagos
enhanced its product portfolio with the addition of three programs in
bone diseases (two for osteoporosis and one for bone metastasis), and
one in cachexia (muscle atrophy and weight loss).  The combined  drug
discovery portfolio  will contribute  to  Galapagos' goal  of  having
multiple clinical programs in bone and  joint diseases by the end  of
2008.   The transaction  with ProSkelia  also included  an  exclusive
license option to oestradiol glucoside (E2G), a product for treatment
of 'hot flashes', a  menopausal symptom.   Galapagos has started  the
preparations to initiate a Phase IIb clinical trial for this compound
in Q4  of 2007.   In  addition to  its programs,  the acquisition  of
ProSkelia contributes capabilities and  facilities that will  greatly
accelerate the Galapagos programs in bone and joint diseases.

BioFocus DPI division
Galapagos acquired  Inpharmatica and  the operational  activities  of
Discovery Partners  International as  part of  its strategy  to  make
BioFocus DPI  a worldwide  leader in  drug discovery  services.   The
appeal of  this synergistic  offering has  been validated  through  a
number of  recent  deals in  which  a combination  of  services  were
included,  like  the  recently   announced  collaboration  with   the
University  of  Bristol  that  combines  Inpharmatica's  Admensa  and
BioFocus DPI's medicinal chemistry expertise.

BioFocus DPI  continues  to  be  successful  in  securing  multi-year
contracts such  as  the  three-year target  discovery  alliance  with
Arthrogen, the three-year exclusive  library contract with Roche  and
the extension of its long term collaboration with Amgen into 2008.

BioFocus DPI  also expanded  its solid  relationship with  non-profit
organizations by initiating a multi-year drug discovery collaboration
with OneWorld Health,  entering a new  ¤2.4 million target  discovery
alliance with the  ALS Association, and  extending the  collaboration
with the Cystic Fibrosis Foundation.

In addition to  these previously announced  service deals,  Galapagos
also  announces  today  that  BioFocus  DPI  has  extended  its  drug
discovery agreement with Eli Lilly  and Company (NYSE:LLY) until  the
end of 2007.  Total contract extension value is expected to exceed ¤1
million.

Details of the financial results

Revenue
Galapagos' revenues for the full year 2006 more than tripled to ¤35.2
million (2005: ¤11.2 million).
Of these revenues, ¤31.0 million were generated by BioFocus DPI.  The
Drug Discovery division contributed ¤4.2 million to Group revenues.

Results
BioFocus DPI contributed approximately ¤3.4 million to the result  of
the Group on a  segment basis in  2006.  The Group  net loss for  the
full year 2006  was ¤11.3 million,  or ¤0.84 per  share, compared  to
¤6.5 million, or ¤0.73 per share for 2005.
The main contributing factor to the planned increase of the net  loss
was an increase in research  and development costs from ¤8.9  million
to ¤15.9 million.  The method  of measuring R&D expenditure has  been
changed in  order to  better reflect  the true  nature of  the  costs
involved,  following   the   ProSkelia  acquisition   and   increased
importance of our R&D spend within the group.  Galapagos now includes
indirect costs such as premises  costs, support staff and other  site
related costs; these costs would previously have been shown in G&A.
Therefore, the comparatives for  2005 and 2004  have been updated  to
reflect  these  changes.     Before  implementing  the  change,   the
investment in R&D would have been ¤12.1 million in 2006, in line with
guidance.

Cash flow and cash position
Galapagos' cash and cash equivalents amounted to ¤51.5 million on  31
December 2006 up from  ¤23.6 million at the end of 2005.

Through private placements on 19 September 2006 (¤11 million) and  22
December 2006 (¤31  million), Galapagos raised  ¤40.3 million net  of
costs.    After  making  an  estimate  for  the  cash  acquired  with
Inpharmatica, for which  shares are  to be issued,  and removing  the
purchase price of the acquisition of the DPI assets of ¤4.3  million,
the full year cash burn was ¤11.9 million.

Outlook 2007
Galapagos anticipates growth in revenues from milestones in its  Drug
Discovery division  and  an  increase in  sales  from  BioFocus  DPI,
resulting in a full-year revenue guidance between ¤54 - 58 million in
2007.  R&D expenditure will increase to approximately ¤33 million  as
a result of initiating clinical Phase IIb trials of the E2G  compound
in  Q4  2007,  progressing  its  RA  and  OP  drug  candidates   into
preclinical studies, and advancing   its other  R&D programs in  bone
and joint diseases.   The R&D  expenditure will be  partly offset  by
anticipated milestones from its alliance  partners.  We believe  this
investment in R&D  will create  the shareholder  value expected  from
entering  the  clinic  with  multiple  programs  in  2008.    Through
continued cost control, full year cash burn in 2007 should be limited
to ¤20 million.


Consolidated Financial Statements 2006
The  electronic   version   of  Galapagos'   Consolidated   Financial
Statements     2006      is     now      available     online      at
www.glpg.com/investor/financial_reports.htm.  Printed versions of the
report can be requested by e-mailing [e-mail].

Conference call and webcast presentation
Galapagos will conduct a conference call open to the public today  at
09.30 Central European Time  (CET), which will also  be webcast.   To
participate in the  conference call,  please call [phone]  ten
minutes prior to commencement.   A question  and answer session  will
follow the presentation of the results.   The live audio webcast  can
be accessed via  Galapagos' website  at www.glpg.com.   The  archived
webcast also will be available for replay shortly after the close  of
the call.

Addendum to Board Change Announcement made on 12 January 2007
Rudi Pauwels has no other mandates at this time.   Dr Pauwels'
previous mandates in the past five years included: Founder, CEO, and
CSO of Tibotec NV (Mechelen, Belgium), Founder and Chairman of VIRCO
NV (Mechelen, Belgium), Chairman of Galapagos Genomics NV (Mechelen,
Belgium).

About Galapagos
Galapagos (Euronext Brussels, GLPG; Euronext Amsterdam, GLPGA; London
AiM: GLPG) is a drug discovery company with clinical and pre-clinical
programs in bone and joint diseases, cachexia, and menopausal hot
flashes.  Its division BioFocus DPI offers a full suite of
target-to-drug discovery products and services to pharmaceutical and
biotech companies, encompassing target discovery and validation,
screening and drug discovery through to delivery of pre-clinical
candidates.  BioFocus DPI also provides adenoviral reagents for rapid
identification and validation of novel drug targets, compound
libraries for drug screening as well as chemogenomics and ADMET[1]
database products to select targets and compounds.  Galapagos
currently employs 450 people and operates facilities in eight
countries, with global headquarters in Mechelen, Belgium.  More
information about Galapagos and BioFocus DPI can be found at
www.glpg.com.


CONTACT

Galapagos NV
Onno van de Stolpe, CEO
Tel: [phone]
[e-mail]


This  release  may  contain  forward-looking  statements,  including,
without  limitation,  statements  containing  the  words  "believes,"
"anticipates," "expects," "intends,"  "plans," "seeks,"  "estimates,"
"may," "will,"  "could," "stands  to," and  "continues," as  well  as
similar expressions.   Such  forward-looking statements  may  involve
known and unknown risks, uncertainties and other factors which  might
cause  the  actual  results,  financial  condition,  performance   or
achievements of  Galapagos, or  industry  results, to  be  materially
different from any historic or future results, financial  conditions,
performance  or   achievements   expressed   or   implied   by   such
forward-looking statements.  Given these uncertainties, the reader is
advised not  to  place any  undue  reliance on  such  forward-looking
statements.  These  forward-looking statements speak  only as of  the
date of publication of this document.  Galapagos expressly  disclaims
any obligation to update any such forward-looking statements in  this
document to  reflect  any  change in  its  expectations  with  regard
thereto or any change in events, conditions or circumstances on which
any such statement is based, unless required by law or regulation.

Silence Select® is a registered trademark of Galapagos NV

[1] ADMET is the acronym for Absorption, Distribution, Metabolism,
Excretion, and Toxicity: Meeting parameters against these five
criteria is critical to the success of a pharmaceutical compound as a
drug.


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