GPC Biotech AG (GPCB)

General and Administrative Expenses

General and administrative (“G&A”) expenses for the nine months ended September 30, 2008, decreased 68.8% to € 10.5 million compared to € 33.6 million for the same period in 2007. The decrease in G&A expenses is primarily due to staff reductions and other associated activities as a result of the restructuring plans implemented in 2007 and the first quarter of 2008. In addition, in the first nine months of 2007, the Company incurred costs in connection with the building of a commercial infrastructure and also incurred legal fees due to the Spectrum Pharmaceuticals arbitration proceedings. The Company did not incur such costs in the first nine months of 2008. Restructuring plans are described in detail in Note 10 of the consolidated financial statements as of December 31, 2007, and below.

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General and Administrative Expenses

General and administrative (“G&A”) expenses for the six months ended June 30, 2008, decreased 64.2% to € 7.6 million compared to € 21.2 million for the same period in 2007. The decrease in G&A expenses is primarily due to staff reductions and other associated activities as a result of the restructuring plans implemented in 2007 and the first quarter of 2008. In addition, in the first half of 2007, the Company incurred costs in connection with the building of a commercial infrastructure and legal fees due to the arbitration proceedings. The Company did not incur such costs in the first half of 2008. Restructuring plans are described in detail in Note 10 to the consolidated financial statements as of December 31, 2007, and below.

General and Administrative Expenses

General and administrative expenses consist primarily of compensation for employees in executive and operational functions, including finance, business development, marketing, investor relations, legal, information technology, human resources, and sales. Other significant costs in this category include facilities costs and professional fees for accounting and legal services, travel, insurance premiums and depreciation.

General and Administrative Expenses

General and administrative (G&A) expenses for the six months ended June 30, 2007 increased 130% to € 23.4 million compared to € 10.2 million for the same period in 2006. The increase in G&A expenses is primarily due to the formation of a sales and marketing organization in preparation of the potential product launch of satraplatin as well as legal expenses.

General and Administrative Expenses

General and administrative expenses consist primarily of compensation for employees in executive and operational functions, including finance, business development, marketing, investor relations, legal, information technology, human resources, and sales. Other significant costs in this category include facilities costs and professional fees for accounting and legal services, travel, insurance premiums and depreciation. We expect costs to increase significantly as we continue to develop our sales and marketing groups in anticipation of the potential commercialization of satraplatin in late 2007.

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General and Administrative Expenses

General and administrative (G&A) expenses for the three months ended March 31, 2007 increased 150% to € 11.0 million compared to € 4.4 million for the same period in 2006. The increase in G&A expenses is primarily due to the formation of a sales and marketing organization in anticipation of the Satraplatin product launch in the U.S., other pre-launch as well as legal expenses.

General and Administrative Expenses

General and administrative expenses consist primarily of compensation for employees in executive and operational functions, including finance, business development, strategic marketing, investor relations, legal, information technology and human resources. Other significant costs in this category include facilities costs and professional fees for accounting and legal services, travel, insurance premiums and depreciation. We anticipate increases in expenses relating to insurance, legal and accounting services, investor relations and other internal resource requirements arising from additional compliance and reporting obligations imposed by Nasdaq and the U.S. federal securities laws.

General and administrative expenses

The following table summarizes the changes in general and administrative expenses for the years ended December 31, 2003 and 2002 (in millions of €, except % change):

General and administrative expenses increased by 2.7% to €11.5 million for the year ended December 31, 2003, compared with €11.2 million for the year ended December 31, 2002. An increase of €0.6 million was due to increased salary and benefit costs and to the addition of three general and administrative personnel, mainly in the area of strategic marketing and business development. Furthermore, while compensation costs for stock options decreased by €0.3 million, compensation costs for convertible bonds increased by €0.7 million due to additional grants of convertible bonds during 2003. These increases were offset by the impact on expenses incurred in U.S. dollars and translated into euros resulting from the weakening of the U.S. dollar against the euro.