Acquisition

Microgen PLC
9 August 2000

                                
          ACQUISITION OF TELESMART DEVELOPMENTS LTD
                                
Microgen plc ('Microgen') announces that it has acquired
Telesmart Developments Ltd ('Telesmart'), one of the UK's
leading providers of payment software for BACS processing. This
acquisition provides a strategic enhancement to Microgen's
business-to-business ('B2B') e-billing service where the
preferred e-payment methods in the UK are anticipated to utilise
the BACS system for the foreseeable future.

Telesmart, based in Finchley, was established in 1982 and has a
strong customer base and reputation in payment systems and
services. For the year ended 31 March 1999, the latest period
for which audited accounts are available, Telesmart reported
revenue of £2.05 million and an operating loss of £107,000. Over
the past 15 months, Telesmart has increased investment in new
product development which has resulted in several new products
and services, including :  'BACWAY Vite' a new core product
upgrade providing increased flexibility to incorporate ongoing
BACS changes; direct debit management software designed for
organisations with high volume direct debit payment collections;
and 'BACWAYnet' which enables NHS health authorities and trusts
to make BACS payments using an application service provider
('ASP') model. These investments have increased the operating
losses during this period and the current Telesmart projections
indicate continuing modest losses through the current year until
the new products realise the projected revenue growth.

The total consideration for Telesmart is up to £2.35 million
comprising up to £1.65 million payable in cash and the issue of
approximately 220,000 new Microgen shares. The consideration
includes a deferred payment of £150,000 subject to Telesmart's
operating performance to December 2001. Microgen will also
assume Telesmart's existing indebtedness of approximately
£400,000. Microgen estimates that the acquisition will give rise
to goodwill of up to £4 million which will be capitalised and
written off over 20 years.

Application will be made to the London Stock Exchange for the
new Microgen shares to be admitted to the Daily Official List of
the London Stock Exchange.  Dealings in the new Microgen shares
are expected to commence on 14 August 2000.

Commenting on the acquisition, Martyn Ratcliffe, Executive
Chairman of Microgen, said :

'Through the acquisition of Telesmart, Microgen can now provide
an integrated e-billing and e-payment solution designed to
satisfy the requirements of the UK business-to-business sector.
This is a strategically significant acquisition in the
development of our e-business services.'


Further information can be obtained at :
www.microgen.co.uk
www.telesmart.co.uk


For further information, please contact :

Martyn Ratcliffe, Executive Chairman, Microgen plc
Mike Phillips, Group Finance Director, Microgen plc
Tel [phone]

Steve Liebmann, Buchanan Communications
Tel [phone]