Offer Update

For immediate release Microgen plc 22 September 2004 Not for release, publication or distribution in whole or in part in or into the United States, Canada, Australia or Japan Recommended Offer by UBS Investment Bank on behalf of Microgen plc for AFA Systems plc Posting of compulsory acquisition notices On 13 September 2004, Microgen plc ('Microgen') released an announcement declaring that the recommended offer made by UBS Investment Bank on behalf of Microgen ('Offer') for AFA Systems plc ('AFA') was unconditional in all respects. The Board of Microgen announces that as at 3.00 pm on 21 September 2004, valid acceptances of the Offer had been received in respect of a total of 43,039,745 AFA Shares, representing approximately 91.2 per cent of the existing issued ordinary share capital of AFA. As valid acceptances of the Offer have been received in respect of more than nine-tenths in value of AFA Shares to which the Offer relates, Microgen intends to apply the provisions of sections 428-430F of the Companies Act 1985 to acquire compulsorily all outstanding AFA Shares on the terms of the Offer. Accordingly, Microgen will be posting this week formal notices under section 429 of the Companies Act 1985 to AFA Shareholders who have not yet accepted the Offer. The Offer will remain open until further notice. As previously announced, the Mix and Match Facility has closed. The expressions in this announcement, unless the context otherwise requires, bear the same meaning as in the Offer Document dated 18 August 2004 ('Offer Document'). This announcement does not constitute an offer or an invitation to purchase or subscribe for any securities. The Offer is made solely by the Offer Document and the Form of Acceptance accompanying the Offer Document, which contain the full terms and conditions of the Offer, including details of how the Offer may be accepted. The Offer is not being made, directly or indirectly, in or into, or by use of mails or by any means or instrumentality (including, without limitation, telephonically or electronically) of interstate or foreign commerce, or any facility of a national securities exchange of, the United States, Canada, Australia or Japan, and the Offer should not be accepted by any such use, means, instrumentality, facility or otherwise from within the United States, Canada, Australia or Japan. Accordingly, copies of this announcement, the Offer Document and the Form of Acceptance are not being, and must not be, mailed or otherwise distributed or sent in, into or from the United States, Canada, Australia or Japan and persons receiving such documents (including nominees, trustees and custodians) must not distribute or send them in or otherwise forward, distribute, into or from the United States, Canada, Australia or Japan. Doing so may render invalid any purported acceptance of the Offer. The availability of the Offer to persons not resident in the United Kingdom may be affected by the laws of their relevant jurisdiction. Persons who are not resident in the UK should obtain their own advice and observe any applicable legal and regulatory requirements. The New Microgen Shares to be issued in connection with the Offer have not been, nor will they be, registered under the Securities Act or under the securities laws of any jurisdiction of the United States, nor has a prospectus in relation to the New Microgen Shares been lodged with, or registered by, the Securities Commission of any province or territory of Canada or the Australian Securities and Investments Commission or the Ministry of Japan. Accordingly, the New Microgen Shares may not be offered, sold, resold or delivered, directly or indirectly, in or into the United States, Canada, Australia or Japan or any other jurisdiction outside the United Kingdom in which the offer of New Microgen Shares would constitute a violation of relevant laws or require registration thereof. UBS is acting exclusively for Microgen in connection with the Offer and no-one else and will not be responsible to anyone other than Microgen for providing the protections afforded to clients of UBS or for providing advice in relation to the Offer or in relation to the contents of this announcement or any transaction or arrangement referred to herein. Enquiries: Microgen plc Mike Phillips (Group Finance Director) Tel: 01753 847 122 UBS Investment Bank Nick Adams Tel: 020 7567 8000 Financial Dynamics Ben way Tel:020 7831 3113
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