Re Agreement

Avacta Group plc

Strategic Alliance

Broader service offering augments market position

Avacta Group plc ("Avacta"), which provides novel detection and analysis
technology for the pharmaceutical, defence & security and clinical diagnostics
markets, announces an agreement with Agenda 1 Analytical Services Ltd ("Agenda
1").

Agenda 1 provides a wide range of analytical techniques and services from
bespoke laboratories located close to Avacta in Bradford, UK. Agenda 1 provides
a complementary service offering to Avacta by focusing on small molecule
therapeutics, whereas Avacta's strength is in the provision of expert analysis
to companies developing large molecule biopharmaceuticals. Consequently, the
agreement provides an immediate synergy allowing Avacta to offer an enhanced
analytical service to a much wider base of pharmaceutical companies along with
access to expertise, resources and technology not available in-house.

The Directors of Avacta believe that this enhanced product offering will enable
accelerated growth of the analytical services business because it affords
Avacta the ability to offer a greater range of the services required by the
pharmaceutical industry. There will be no consideration payable by Avacta for
this sharing of services.

Professor Alastair Smith, Chief Executive Officer, Commented:

"Avacta Analytical Limited, Avacta's technical services subsidiary, has made
very good progress in its provision of analytical services to the
biopharmaceutical sector but we are aware that some potential clients require
an even broader range of services than we have been able to offer to date.
Today's agreement allows us to extend our services and cover a greater range of
the pharmaceutical industry's requirements and my expectation is that this will
lead to more rapid growth in the services business of the Group."

                                                                 7 January 2008

Enquiries:

Avacta Group plc                          Tel: [phone]                 
                                                                             
Russell Hodgetts                                                             
                                                                             
Nexus Financial Ltd                       Tel: [phone]                 
                                                                             
Nicholas Nelson/Kathy Boate               [e-mail]   
                                                                             
WH Ireland Ltd (Nominated Adviser)        Tel: [phone]                 
                                                                             
David Youngman/Robin Gwyn                                                    
                                                                             
BankOra Ltd                               Tel: [phone]                 
                                                                             
Michael Brennan/Henry Turcan                                                 

Notes to Editors:

About Avacta

Avacta was spun-out from the University of Leeds in 2004 by its current
management team as a biophysics company, with the aim of combining the
disciplines of physics and biology to develop innovative technologies and
expert technical services to address needs in the pharmaceutical, defence and
clinical diagnostics markets. Avacta has a core bio-analytical technology
development programme addressing the needs of the biopharmaceutical sector to
fully characterise their new products at the earliest stage in their
development to reduce the risk of late stage failure. High value solutions in
defence and clinical diagnostics are also being provided by Avacta's
development programmes.

A successful and growing part of the Avacta business model is its technical
services arm, Avacta Analytical Ltd which is focused on providing leading edge
contract research to the biopharmaceutical and healthcare/personal-care
materials sectors. Avacta listed on AIM in August 2006 through the reverse
takeover of Readybuy plc which changed its name to Avacta Group plc.

About Agenda 1

Agenda 1 grew from the analytical laboratories of Nektar Therapeutics (UK) Ltd
- (a.k.a. Bradford Particle Design Ltd). The team was formed to utilise their
experience as a development group supporting both new technologies and new
pharmaceutical products working from early stage project initiation up to and
including enabling the release of material for clinical trials.

Agenda 1's client base ranges from major pharmaceutical companies through to
virtual companies, and emerging and growing Bio-Pharma businesses. Agenda 1 has
developed a number of flexible approaches to help clients access their lab
facilities. These include the option to place contract staff into the
laboratories via a unique structure with Synergy Outsourcing, a company
specialising in scientific personnel. Agenda 1 has also recently launched an
innovative "Lab Time-Share" approach, which saw the company awarded the
prestigious Royal Society of Chemistry "SME of the month" award for July 2007.