Issue of Equity

Ardana PLC
20 September 2006



Ardana plc
20 September 2006


Not for release, publication or distribution, in whole or in part, in, into or
from the United States, Canada, Australia and Japan


Ardana plc ('Ardana')


Proposed Placing and Open Offer of 9,585,380 New Ordinary Shares at 115 pence
per Share raising £11.0 million


Ardana announces today that it is proposing to raise approximately £9.9 million,
net of expenses, by the issue of 9,585,380 New Ordinary Shares at a price of 115
pence per New Ordinary Share.


A Prospectus issued by the Company containing details of the Placing and Open
Offer and convening an EGM for 12 October 2006 is expected to be posted to
Qualifying Shareholders today.


Highlights of the fundraising are as follows:


  • Placing and Open Offer of 9,585,380 New Ordinary Shares at a price of 115
    pence per New Ordinary Share to raise £11.0 million (£9.9 million net of
    expenses);

  • Open Offer to Qualifying Shareholders on the basis of 5 New Ordinary
    Shares for every 29 Existing Ordinary Shares;

  • Placing and Open Offer has been fully underwritten by Piper Jaffray, other
    than the Committed Shares;

  • The Issue Price of 115 pence per New Ordinary Share represents a 9.1 per
    cent. discount to the closing middle market price on the Business Day prior
    to announcement of the Placing and Open Offer;

  • Certain of the Directors have irrevocably undertaken to subscribe for a
    total of 44,573 New Ordinary Shares (being the Committed Shares) under the
    terms of the Open Offer; and

  • 5,493,362 New Ordinary Shares (being the Firm Placed Shares) have been
    conditionally placed firm by Piper Jaffray with institutional investors
    which will broaden the Company's institutional investor base.


Use of proceeds:


  • approximately £5.7 million will be used to invest in the clinical
    development of Ardana's Growth Hormone Secretagogue (GHS) in its first
    indication as a diagnostic and second indication AIDS lipodystrophy; and

  • approximately £4.2 million will be used to launch and promote Emselex(R)
    in the UK, a product developed by Novartis for the treatment of overactive
    bladder for which Ardana has been granted sole and exclusive rights to
    launch and promote in the UK for ten years.


Dr. Maureen Lindsay, Chief Executive Officer of Ardana, commented:

'We have always believed that the GHS programme represented significant
potential value for the Company, and we are pleased to have the support of
investors to accelerate this opportunity. We are delighted that Novartis has
chosen Ardana to launch Emselex(R) in the UK market which we think is a
tremendous endorsement of our sales and marketing capabilities.  Emselex(R) has
shown favourable efficacy, a low incidence of cardiovascular adverse events and
in elderly healthy volunteers did not significantly impair memory function.  We
believe that Emselex(R) will offer health professionals an effective and well
tolerated new treatment option for patients who experience overactive bladder
symptoms and is an important addition to Ardana's portfolio.'

Enquiries:

Ardana plc

[phone]

Dr Maureen Lindsay, Chief Executive Officer

Graham Lee, Chief Financial Officer



Piper Jaffray Ltd.

[phone]

Jamie Adams

James Steel



Financial Dynamics

[phone]

Julia Phillips




A presentation for analysts will be held today at 10.45 a.m. for 11.00 a.m. at
the offices of Financial Dynamics, Holborn Gate, 26 Southampton Buildings,
London WC2A 1PB.  Please call Gemma Cross Brown for further details on +44 (0)20
7269 7125.



Piper Jaffray Ltd., which is authorised and regulated in the United Kingdom by
the Financial Services Authority and is a member of the London Stock Exchange,
is acting for the Company and no-one else in connection with the Placing and
Open Offer and will not be responsible to anyone other than the Company for
providing the protections afforded to its customers or for providing advice in
relation to the Placing and Open Offer or any other matter referred to herein.


This press announcement has been issued by Ardana plc and is the sole
responsibility of Ardana plc.


The Placing and Open Offer is not, subject to certain exceptions, being made,
directly or indirectly, in or into the United States.  Securities may not be
offered or sold in the United States without registration or an exemption from
registration.  Neither the existing Ordinary Shares, nor the New Ordinary Shares
nor the Open Offer Entitlements have been or will be registered under the US
Securities Act or under the securities laws of any state of the United States,
or under the applicable securities laws of Australia, Canada or Japan.  Subject
to certain exceptions, the Ordinary Shares made available under the Placing and
Open Offer and the Open Offer Entitlements may not be offered, sold, taken up,
delivered or transferred in or into the United States, Australia, Canada or
Japan, and, subject to certain exceptions, Application Forms are not being
posted to and no Open Offer Entitlements will be credited to a stock account of
any person with a registered address in the United States, Australia, Canada or
Japan.  This announcement should not be issued, mailed or otherwise distributed
or sent into the United States.  All persons (including, without limitation,
stockbrokers, banks or other agents) must observe these restrictions.


This announcement does not constitute or form part of any offer or invitation to
sell or issue, or any solicitation of any offer to purchase or subscribe for,
any securities.  Any purchase of, or application for, the New Ordinary Shares
should be made only on the basis of information contained in the Prospectus to
be sent to Qualifying Shareholders shortly.


The delivery of this announcement shall not, under any circumstances, create any
implication that there has been no change in the affairs of the Group since the
date of this announcement nor that the information in it is correct as of any
subsequent time.



This announcement may contain forward-looking statements that reflect the
Group's current expectations regarding future events, including the clinical
development and regulatory clearance of the Group's products, the Group's
ability to find partners for the development and commercialisation of its
products, the Group's liquidity and results of operations, as well as the
Group's future capital raising activities.  Forward-looking statements involve
risks and uncertainties.  Actual events could differ materially from those
projected herein and depend on a number of factors, including the success of the
Group's research strategies, the applicability of the discoveries made therein,
the successful and timely completion of clinical studies, the uncertainties
related to the regulatory process, the ability of the Group to identify and
agree beneficial terms with suitable partners for the commercialisation and/or
development of its products, the acceptance of the Group's products by consumers
and medical professionals, and the ability of the Group to identify and
consummate suitable strategic and business combination transactions.



Not for release, publication or distribution, in whole or in part, in, into or
from the United States, Canada, Australia and Japan



Ardana plc



Proposed Placing and Open Offer of 9,585,380 New Ordinary Shares at 115 pence
per Share



Introduction


Ardana announces today that it proposes to raise approximately £9.9 million, net
of expenses, by way of a Placing and Open Offer of 9,585,380 New Ordinary Shares
at 115 pence per Ordinary Share.  The Placing and Open Offer, which is
conditional, inter alia, upon the passing by Shareholders of the Resolutions at
the EGM has been fully underwritten by Piper Jaffray (save for the Committed
Shares).  The New Ordinary Shares (other than the Committed Shares) have been
conditionally placed by Piper Jaffray with institutional investors subject to
claw back to satisfy valid applications from Qualifying Shareholders under the
Open Offer (other than in respect of the Firm Placed Shares).



Monies raised by the Placing and Open Offer will be used to develop EP01572
(GHS), the Company's oral growth hormone secretagogue and to launch and promote
Emselex(R), a treatment for overactive bladder, in the UK, for which agreement
has been reached with Novartis Pharmaceuticals UK Limited to grant Ardana sole
and exclusive rights to launch and promote the product in the UK for a ten year
term.



GHS has for sometime been considered an asset which the Company believes has
significant near and long term potential.  Following a positive pre-IND meeting
with the FDA, the Directors believe that GHS can be developed in a niche
indication as a diagnostic for the diagnosis of growth hormone deficiency.  In
addition, Phase I results have shown that GHS can stimulate growth hormone
release selectively without affecting other hormone levels.  It was also shown
to be well tolerated in Phase I clinical trials.  Ardana believes that GHS has
the potential to be the first oral therapy in the growth hormone market and
could capture a significant share of this market currently estimated to be worth
US$3.1 billion, if approved by the relevant authorities.  Current therapies
involve hormone replacement, principally for children, using daily subcutaneous
injections.  Therefore, the Company will invest in a registration trial for GHS
as a diagnostic in the indication of growth hormone deficiency which the Company
has identified as a niche indication with near term potential.  Subject to the
outcome of the trial and regulatory approval, the launch of the diagnostic
indication could be as early as H1 2008 in the US and H2 2008 in the EU.  It is
expected that an early market entry of GHS as a diagnostic would provide Ardana
with a strong platform from which to develop GHS as a therapeutic agent and to
generate near term revenues.  The Company also intends to undertake further
clinical trials for the first potential therapeutic indication (AIDS
lipodystrophy).  This would allow Ardana to compete in this US$3.1 billion
therapeutic market once approved.



Agreement has been reached with Novartis Pharmaceuticals UK Limited for Ardana
to be granted the sole and exclusive rights to launch and promote Emselex(R)
(Darifenacin) for overactive bladder (OAB) in the UK for a 10 year term.
Emselex(R), which has been launched in collaboration with Bayer Vital GmbH in
Germany and Procter and Gamble Pharmaceuticals, Inc. in the US (where the
product is known as Enablex(R)), is a product which fits extremely well with
Ardana's therapeutic focus of human reproductive health.  The product will be
targeted to urologists, the same customer group as for InvicorpTM, which is
expected to be launched by the end of 2006.  An additional marketed product in
the UK will leverage the current sales force who are currently promoting 
StriantTM SR to endocrinologists and urologists.  This transaction presents an
opportunity for the Group to grow its sales and marketing infrastructure in time
for the UK launch of Testosterone Cream and GHS as a diagnostic, both of which
could enter the market in 2008.



Information and background on Ardana


Ardana is an emerging pharmaceutical company focused on the discovery,
development and marketing of innovative products to improve human reproductive
health, in order to address areas of considerable unmet need in this US$25.5
billion market.



Ardana's strategy is to manage risk by continuing to maintain a broad and
balanced pipeline of products and product candidates through relationships with
leading research institutions and the acquisition of products and intellectual
property rights.  The Group has already established a targeted sales force in
the UK and intends to establish its own specialist sales and marketing
infrastructure in the Group's five largest European markets to support the
future launch of additional products as and when commercially appropriate.  It
is intended that such infrastructure will be in place in time to support the
launch of Teverelix LA in Europe.  In the interim, commercialisation of the
Group's products will be by a combination of own infrastructure and strategic
partnerships.  Currently, Ardana's key customers are endocrinologists and
urologists and, as the portfolio expands, the customer profile will include
other reproductive health specialists such as obstetricians and gynaecologists.



Ardana has already established a broad, balanced portfolio of products
addressing a range of diseases and medical conditions within the human
reproductive health market.  This portfolio includes one marketed product
(StriantTM SR) that was launched in the UK in June 2004 through Ardana's own
sales force and has since been launched in Germany, the Nordic Region and the
Republic of Ireland through partners.  Another product (InvicorpTM has received
marketing approval in one European territory (Denmark) and is being submitted
for approval in the other European territories.  Three other product candidates
with clinical proof-of-concept (in four different indications) are being
developed, two of which are expected to enter the market by H1 2008.  These
products are supplemented by a number of other products and technologies in
various stages of development.  It is Ardana's intention to continue to advance
and add to the Group's pipeline of products under development.  Ardana's lead
products, each of which has been in-licensed or acquired are summarised below:



StriantTM SR - A unique and innovative controlled-release buccal tablet
containing 30mg of unmodified testosterone indicated for testosterone
replacement therapy in men with confirmed male hypogonadism, the most common
hormone deficiency in men.  The StriantTM SR tablet is applied twice a day to
the gum above the incisor tooth, providing a novel method of delivery compared
with existing testosterone replacement products.  In April 2004, marketing
authorisation was granted for this product in the UK, where Ardana commenced
commercial sales in June 2004.  StriantTM SR has received a positive opinion
under the Mutual Recognition Procedure for several other European countries.
Through its local partners, Ardana commenced rolling-out the sale and
distribution of StriantTM SR across European-licensed territories in 2005,
starting with Germany and Ireland, and continued with the appointment of a
partner and launch in the Nordic Region in 2006.



InvicorpTM  - An injectable treatment for erectile dysfunction.  Marketing
authorisation for InvicorpTM has already been granted in Denmark.  Ardana
intends to initiate mutual recognition proceedings and to commence sales in
Europe by the end of 2006.



Emselex(R) - Ardana has recently reached agreement with Novartis Pharmaceuticals
UK Limited to be granted the sole and exclusive rights to launch and promote
Emselex(R) for OAB in the UK for a ten year term. Emselex(R) was granted
approval for the treatment of OAB in all 25 EU member states as well as Norway
and Iceland in October 2004.  Part of the net proceeds of the Placing and Open
Offer will be used to launch and promote Emselex(R) in the UK.



Oral GHS - GHS is a growth hormone secretagogue and is a novel synthetic
compound that is orally active and stimulates the secretion of growth hormone
from the patient's pituitary gland for the treatment of growth hormone
disorders.  Phase I trial results show that GHS stimulates growth hormone
release in a selective manner without affecting the stimulation of other
hormones.  GHS may be able to be formulated in such a way that it can mimic the
human body's daily growth hormone pulsatility.  Part of the net proceeds of the
Placing and Open Offer will go towards progressing clinical development of GHS
in the first therapeutic indication.  At the same time Ardana intends to
complete a US registration trial for the use of GHS as a diagnostic for
detection of growth hormone deficiency in adults following agreement of its
plans at a pre-IND meeting with the FDA.  Subject to a positive trial outcome
and successful registration, Ardana believes that the diagnostic product could
be on the US market as early as H1 2008 and in the EU in H2 2008.



Testosterone Cream - A transdermal testosterone delivery system based on the
Company's Bi-gel technology, which is in development for the treatment of male
hypogonadism.  The testosterone cream consists of both oil-based and water-based
substances together with the active ingredient, testosterone, to form a smooth
cream.  The Directors believe that this product potentially offers important
advantages over existing gel-based testosterone products.  Clinical
proof-of-concept has been established in a Phase II study.  In December 2005
Ardana reached agreement with the FDA on the path forward for development of
testosterone cream.  Phase III trials are planned to commence in H2 2006 and the
first commercial sales are expected to be in the US by H1 2008.  Ardana also has
the opportunity to develop additional compounds to market using the Bi-gel
technology.



Teverelix LA - A long-acting formulation of a GnRH (gonadotrophin releasing
hormone) antagonist that binds with  receptors in the pituitary gland, to
provide dose-dependent control of the release of the sex hormones testosterone
and oestradiol.  This mode of action means that Teverelix LA can be used as an '
'on/off'' or ''dimmer'' switch for hormone release. Ardana is developing
Teverelix LA to treat three initial indications: prostate cancer, benign
prostatic hyperplasia (BPH) and endometriosis.  In Phase I trials, Teverelix LA
was well tolerated and demonstrated a dose dependent reduction of testosterone
in men and oestradiol in women.  In two initial Phase II studies in patients
with advanced prostate cancer, the product was well tolerated and testosterone
was reduced in all treated patients to levels equivalent to those achieved by
castration.  In a Phase II study in patients with BPH Teverelix demonstrated a
statistically significant improvement in symptoms of BPH as measured by the
International Prostate Symptom Score.  Additional Phase II trials in prostate
cancer and BPH are currently underway.  In 2005 Ardana reached agreement with
the FDA on the path forward for development of Teverelix in prostate cancer and
BPH.



Progress since the IPO



Since the Company successfully completed its listing on the main market of the
London Stock Exchange in March 2005 the Company has made significant progress in
all areas of its business and has utilised the net proceeds from the IPO to
achieve many of the objectives that the Directors set out at that time.



In terms of key research and development objectives at the time of the IPO the
Company has announced successful results of a second Phase II study of Teverelix
LA in patients with advanced prostate cancer, a Phase II study of Teverelix LA
in BPH and Phase I data for the proposed indication of endometriosis.  The
Company has also had pre-IND meetings with the FDA to discuss development for
the indications of both prostate cancer and BPH which has resulted in a
significant advance in the expected launch date of Teverelix LA for BPH.  In
addition, the Company has also announced positive results in two Phase II
studies of its testosterone cream for the treatment of male hypogonadism, a
pre-IND meeting has also been held with the FDA and agreement has been reached
on the regulatory requirements to obtain a marketing authorisation in the US.
Furthermore, positive results were announced from a Phase I study of its oral
growth hormone secretagogue and, following this, a pre-IND meeting has been held
with the FDA to discuss the development of this compound as a growth hormone
stimulation test for the diagnosis of growth hormone deficiency.  Agreement on
the requirements in terms of supporting preclinical and clinical data was
reached such that, subject to a positive study outcome and successful
registration, the diagnostic product could reach the market as early as H1 2008
in the US and in H2 2008 in the EU.



At the time of the IPO the Directors also indicated that 25 per cent. of the net
proceeds would go towards the commercialisation of the Group's lead products,
particularly StriantTM SR and InvicorpTM.  To this end, since the IPO Ardana has
launched StriantTM in Germany, the Republic of Ireland and the Nordic Region
through its partners Cytochemia AG, Mode Medical and Pharmacuro ApS
respectively.  In addition, sales of InvicorpTM are expected to commence by the
end of 2006.



Since the IPO, the Company has also made a number of senior appointments
including Carol

Ferguson as a Non-executive Director and chair of the Audit Committee, Dr Huw
Jones as a Non-executive Director, Klaus Falk as VP of Sales and Marketing and
John Hawkins, as director of Human Resources.



Ardana is in discussions with potential partners to collaborate on the future
development and commercialisation of Teverelix LA.  Currently there are a number
of opportunities in terms of indications and territories which the Directors
believe will allow Ardana to maximise value.  This range of opportunities
combined with the recent emergence of new potential partners has meant that the
Company wishes to take more time to explore all the options.  The Directors
expect to have agreements in place before the start of the first Phase III
trials.



Current Trading and Prospects



Since the year ended 31 March 2006, the Company has continued to incur losses in
line with the Directors' expectations and has continued to make good progress
across each of its development programmes.  As at 31 July 2006, Ardana had £15.5
million in cash and cash equivalents (unaudited).  The Directors are confident
of the financial and trading prospects of the Group for the current financial
year.  The Directors expect that losses and cash outflows will continue for a
number of years.



Use of proceeds of the Placing and Open Offer



The Directors intend to use the net proceeds of the Placing and Open Offer,
amounting to approximately £9.9 million, for the following purposes:



  • approximately £5.7 million will be used to invest in the clinical
    development of GHS in its first indication as a diagnostic and second
    indication in AIDS lipodystrophy; and

  • approximately £4.2 million will be used to launch and promote Emselex(R)
    in the UK.



The Directors also believe that the additional financial strength resulting from
the Placing and Open Offer will enhance the Company's ability to negotiate more
favourable terms in any future partnering agreements or other future corporate
transactions.



Principal Terms of the Placing and Open Offer



Qualifying Shareholders are being given the opportunity to subscribe for the New
Ordinary Shares pro rata to their existing shareholdings at a price of 115 pence
per New Ordinary Share on the basis of:



          5 New Ordinary Shares for every 29 Existing Ordinary Shares



held by Qualifying Shareholders at the Record Date and so on in proportion for
any other number of Ordinary Shares then held.



Certain Qualifying Shareholders, being 3i Group plc, ABN AMRO Participaties
B.V., Baronsmead VCT 2 Plc, Baronsmead VCT 3 plc, Merlin General Partner II Ltd.
as General Partner of the Merlin Biosciences Fund LP, Merlin General Partner II
Ltd. as Managing Partner of the Merlin Biosciences Fund Gbr, MVM Life Science
Partners LLP ('MVM'), MVM for and on behalf of UK Medical Ventures Fund No.1 LP,
MVM for and on behalf of MVM International Life Sciences Fund No.1 LP and
certain executives of MVM, TVM V Life Science Ventures GmbH & Co. KG and
Waverley Healthcare Private Equity Limited have entered into irrevocable
undertakings to vote in favour of the Resolutions and not to take up any part of
their respective Open Offer Entitlements which, in aggregate, amount to
5,493,362 New Ordinary Shares (being 57.3 per cent. of the New Ordinary Shares).
  Accordingly, under the terms of the Placing Agreement, such number of New
Ordinary Shares (being the Firm Placed Shares) have been conditionally placed
firm by Piper Jaffray with institutional investors.



Certain of the Directors (being Dr Maureen Lindsay, Graham Lee, Dr John Brown
and Carol Ferguson) have irrevocably undertaken to take up their entire Open
Offer Entitlements (being the Committed Shares) in respect of their own
beneficial shareholdings, which together amount to 258,538 Existing Ordinary
Shares (being 0.47 per cent. of the Company's current issued ordinary share
capital).



Fractions of New Ordinary Shares will not be allotted and each Qualifying
Shareholder's entitlement under the Open Offer will be rounded down to the
nearest whole number.  The fractional entitlements will be aggregated and
included in the Placing, with the proceeds being retained for the benefit of the
Company.



Qualifying Shareholders may apply for any whole number of New Ordinary Shares up
to their maximum entitlement which, in the case of Qualifying non-CREST
Shareholders, is equal to the number of Open Offer Entitlements as shown on
their Application Form or, in the case of Qualifying CREST Shareholders, is
equal to the number of Open Offer Entitlements standing to the credit of their
stock account in CREST.  Qualifying Shareholders with holdings of Existing
Ordinary Shares in both certificated and uncertificated form will be treated as
having separate holdings for the purpose of calculating their entitlements under
the Open Offer.



No application in excess of a Qualifying Shareholder's maximum entitlement will
be met, and any Qualifying Shareholder so applying will be deemed to have
applied for his maximum entitlement only.



The Placing and Open Offer has been fully underwritten by Piper Jaffray (other
than the Committed Shares), subject to certain conditions set out in the Placing
Agreement.



Application has been made for the Open Offer Entitlements to be admitted to
CREST.  It is expected that the Open Offer Entitlements will be admitted to
CREST on 21 September 2006.  The Open Offer Entitlements will also be enabled
for settlement in CREST on 21 September 2006.  Applications through the means of
the CREST system may only be made by the Qualifying Shareholder originally
entitled or by a person entitled by virtue of a bona fide market claim.



Qualifying non-CREST Shareholders will receive an Application Form with the
Prospectus which sets out their maximum entitlement to New Ordinary Shares as
shown by the number of Open Offer Entitlements allocated to them.



Shareholders should note that the Open Offer is not a rights issue.  Qualifying
CREST Shareholders should note that, although the Open Offer Entitlements will
be admitted to CREST and be enabled for settlement, applications in respect of
entitlements under the Open Offer may only be made by the Qualifying Shareholder
originally entitled or by a person entitled by virtue of a bona fide market
claim raised by CRESTCo's claims processing unit.  Qualifying non-CREST
Shareholders should note that the Application Form is not a negotiable document
and cannot be traded.  Qualifying Shareholders should be aware that in the Open
Offer, unlike in a rights issue, any New Ordinary Shares not applied for will
not be sold in the market or placed for the benefit of Qualifying Shareholders
who do not apply under the Open Offer, but will be placed under the Placing for
the benefit of the Company.



Pursuant to, and subject to the terms and conditions, of the Placing Agreement,
Piper Jaffray has agreed conditionally to place the New Ordinary Shares (other
than the Committed Shares) with institutional investors.  To the extent that
they fail to do so, Piper Jaffray has agreed to subscribe for the New Ordinary
Shares (other than the Committed Shares) at the Issue Price, subject to claw
back to satisfy valid applications by Qualifying Shareholders under the Open
Offer.



The Placing and Open Offer is conditional, inter alia, upon:



(i)  the passing of the Resolutions;



(ii) Admission becoming effective by not later than 8.00 a.m. on
13 October 2006 (or such later time and/or date as Piper Jaffray and the Company
may agree, not being later than 8.00 a.m. on 19 October 2006); and



(iii)the Placing Agreement becoming unconditional in all
respects and not having been terminated in accordance with its terms.


Accordingly, if any of such conditions are not satisfied, or, if applicable,
waived, the Placing and Open Offer will not proceed and any Open Offer
Entitlements admitted to CREST will thereafter be disabled.  The New Ordinary
Shares, when issued and fully paid, will rank in full for all dividends or other
distributions declared, made or paid after the date of issue of the New Ordinary
Shares and otherwise pari passu with the existing Ordinary Shares.  No temporary
documents of title will be issued.  Application has been made for the New
Ordinary Shares to be admitted to the Official List and to trading on the London
Stock Exchange's main market for listed securities.  It is expected that
Admission will become effective on 13 October 2006 and that dealings for normal
settlement in the New Ordinary Shares will commence at 8.00 a.m. on the same
day.




Documents Available for Inspection



Copies of the Prospectus will be available to the public for inspection at the
Document Viewing Facility, 25 The North Colonnade, Canary Wharf, London E14 5HS.


Expected Timetable of Principal Events



                                                                                                         2006

Record Date for the Open Offer                                              close of business on 18 September


Posting of Prospectus, Application Forms and Forms of Proxy for use at                           20 September
the EGM


Open Offer Entitlements credited to stock accounts in CREST of Qualifying                        21 September
CREST Shareholders


Latest recommended time for requesting withdrawal of Open Offer                        4.30 p.m. on 4 October
Entitlements from CREST


Latest time for depositing Open Offer Entitlements into CREST                          3.00 p.m. on 6 October


Latest time and date for splitting Application Forms (to satisfy bona                  3.00 p.m. on 9 October
fide market claims)


Latest time and date for receipt of completed Application Forms and                  11.00 a.m. on 11 October
payment in full under the Open Offer or settlement of relevant CREST
instruction (as appropriate)


EGM                                                                                  12.00 p.m. on 12 October


Dealings in the New Ordinary Shares commence                                          8.00 a.m. on 13 October


Expected date for crediting of New Ordinary Shares to CREST stock                                  13 October
accounts in uncertificated form


Expected date of despatch of share certificates in respect of New                               by 20 October
Ordinary Shares in certificated form


Placing and Open Offer Statistics


Issue Price                                                                                          115 pence


Number of Ordinary Shares in issue as at the Record Date                                            55,595,209


Number of New Ordinary Shares to be issued pursuant to the Placing and Open Offer                    9,585,380


Number of Ordinary Shares in issue immediately following Admission                                  65,180,589


Market capitalisation of Ardana following the Placing and Open Offer at the Issue Price         £74.96 million


Gross proceeds of the Placing and Open Offer receivable by the Company                           £11.0 million


Estimated net proceeds of the Placing and Open Offer available to the Company                     £9.9 million


Enquiries:


Ardana plc

[phone]

Dr Maureen Lindsay, Chief Executive Officer

Graham Lee, Chief Financial Officer



Piper Jaffray Ltd.

[phone]

Jamie Adams

James Steel



Financial Dynamics

[phone]

Julia Phillips



Piper Jaffray Ltd., which is authorised and regulated in the United Kingdom by
the Financial Services Authority and is a member of the London Stock Exchange,
is acting for the Company and no-one else in connection with the Placing and
Open Offer and will not be responsible to anyone other than the Company for
providing the protections afforded to its customers or for providing advice in
relation to the Placing and Open Offer or any other matter referred to herein.



This press announcement has been issued by Ardana plc and is the sole
responsibility of Ardana plc.



The Placing and Open Offer is not, subject to certain exceptions, being made,
directly or indirectly, in or into the United States.  Securities may not be
offered or sold in the United States without registration or an exemption from
registration.  Neither the existing Ordinary Shares, nor the New Ordinary Shares
nor the Open Offer Entitlements have been or will be registered under the US
Securities Act or under the securities laws of any state of the United States,
or under the applicable securities laws of Australia, Canada or Japan.  Subject
to certain exceptions, the Ordinary Shares made available under the Placing and
Open Offer and the Open Offer Entitlements may not be offered, sold, taken up,
delivered or transferred in or into the United States, Australia, Canada or
Japan, and, subject to certain exceptions, Application Forms are not being
posted to and no Open Offer Entitlements will be credited to a stock account of
any person with a registered address in the United States, Australia, Canada or
Japan.  Subject to certain exceptions, neither this announcement nor any other
document connected with the Placing and Open Offer may be issued, mailed or
otherwise distributed or sent, through CREST or otherwise, in or into the United
States.  All persons (including, without limitation, stockbrokers, banks or
other agents) must observe these restrictions.



This announcement does not constitute or form part of any offer or invitation to
sell or issue, or any solicitation of any offer to purchase or subscribe for,
any securities other than the securities to which it relates or any offer or
invitation to sell or issue, or any solicitation of any offer to purchase or
subscribe for, such securities by any person in any circumstances in which such
offer or solicitation is unlawful.



Neither the delivery of this announcement nor any subscription or sale made
under it shall, under any circumstances, create any implication that there has
been no change in the affairs of the Group since the date of this announcement
or that the information in it is correct as of any subsequent time.



This announcement may contain forward-looking statements that reflect the
Group's current expectations regarding future events, including the clinical
development and regulatory clearance of the Group's products, the Group's
ability to find partners for the development and commercialisation of its
products, the Group's liquidity and results of operations, as well as the
Group's future capital raising activities.  Forward-looking statements involve
risks and uncertainties.  Actual events could differ materially from those
projected herein and depend on a number of factors, including the success of the
Group's research strategies, the applicability of the discoveries made therein,
the successful and timely completion of clinical studies, the uncertainties
related to the regulatory process, the ability of the Group to identify and
agree beneficial terms with suitable partners for the commercialisation and/or
development of its products, the acceptance of the Group's products by consumers
and medical professionals, and the ability of the Group to identify and
consummate suitable strategic and business combination transactions.



Definitions



The following definitions apply throughout this announcement, unless the context
requires otherwise:


Admission                    the admission of the New Ordinary Shares (i) to the Official List and (ii) to
                             trading on the London Stock Exchange's main market for listed securities becoming
                             effective in accordance with the Listing Rules and the Admission and Disclosure
                             Standards


Application Form             the personalised application form which will accompany the Prospectus for
                             Qualifying non-CREST Shareholders for use in connection with the Open Offer


Board                        the board of Directors of the Company


Business Day                 a day (excluding Saturdays and Sundays and public holidays in England and Wales)
                             on which banks are generally open for the transaction of normal banking business
                             in the City of London


certificated or certificated   
form                         in relation to an Ordinary Share, not in uncertificated form

Committed Shares             the 44,573 New Ordinary Shares that certain Directors, have irrevocably committed
                             to take up under the Open Offer


Company or Ardana            Ardana plc


CREST                        the relevant system (as defined in the Regulations) for the paperless settlement
                             of trades and the holding of uncertificated securities operated by CRESTCo in
                             accordance with the Regulations


CRESTCo                     CRESTCo Limited, the operator of CREST


Directors                   the directors of the Company


EGM                          the extraordinary general meeting of the Company  convened on 12 October 2006


enabled for settlement      in relation to Open Offer Entitlements, enabled for the limited purpose of
                            settlement of claim transactions and unmatched stock event transactions (each as
                            described in the CREST Manual issued by CRESTCo)


Firm Placed Shares          5,493,362 New Ordinary Shares that certain Qualifying Shareholders have
                            irrevocably undertaken not to apply for pursuant to the Open Offer


Group                      the Company and its subsidiary undertakings at the date of this announcement


Issue Price                 115 pence per New Ordinary Share


Japan                      Japan, its territories and possessions and any areas subject to its jurisdiction


Listing Rules              the rules and regulations made by the Financial Services Authority under Part VI
                           of the Financial Services and Markets Act 2000 (as amended from time to time)


New Ordinary Shares        9,585,380 new Ordinary Shares to be issued pursuant to the Placing and Open Offer


Official List              the Official List of the Financial Services Authority


Open Offer                 the conditional invitation to Qualifying Shareholders to subscribe for New Ordinary
                           Shares at the Issue Price on the terms and subject to the conditions set out or
                           referred to in the Prospectus and, where relevant, in the Application Form


Open Offer Entitlement     an entitlement to apply to subscribe for New Ordinary Shares, allocated to a
                           Qualifying Shareholder pursuant to the Open Offer


Ordinary Shares            ordinary shares of 1p each in the capital of the Company


Overseas Shareholders      Shareholders who are resident in, or who are citizens of, or who have registered
                           addresses in, territories other than the United Kingdom and Shareholders who are
                           US persons


Piper Jaffray               Piper Jaffray Ltd., sole sponsor, broker and financial adviser to the Company


Placing                    the conditional placing by Piper Jaffray on behalf of the Company of the New
                           Ordinary Shares pursuant to the Placing Agreement


Placing Agreement          the agreement dated today between the Company and Piper Jaffray relating to the
                           Placing and Open Offer


Prospectus                 the Prospectus to be posted to Shareholders in connection with the Placing and
                           Open Offer and Admission


Qualifying CREST 
Shareholders               Qualifying Shareholders whose Ordinary Shares on the register of members
                           of the Company on the Record Date are in uncertificated form


Qualifying non-CREST 
Shareholders               Qualifying Shareholders whose Ordinary Shares on the register of
                           members of the Company on the Record Date are in certificated form


Qualifying Shareholders    holders of Ordinary Shares on the Company's register of members at
                           the Record Date (other than certain Overseas Shareholders)


Record Date                close of business on 18 September 2006


Regulations                the Uncertificated Securities Regulations 2001, as amended from time
                           to time


Resolutions                the resolutions set out in the notice convening the extraordinary
                           general meeting of the Company to be held on 12 October 2006


Shareholders               holders of Ordinary Shares


stock account              an account within a member account in CREST to which a holding of a
                           particular share or other security in CREST is credited


uncertificated or 
uncertificated form        recorded on the relevant register or other record of the share or other
                           security concerned as being held in uncertificated form in CREST, and
                           title to which, by virtue of the Regulations, may be transferred by means
                           of CREST


United Kingdom or UK       the United Kingdom of Great Britain and Northern Ireland


United States or US        the United States of America, its territories and possessions, any state
                           of the United States of America and the District of Columbia


US Securities Act          the United States Securities Act of 1933, as amended



                      This information is provided by RNS
            The company news service from the London Stock Exchange