Partnership Agreement

Dechra Pharmaceuticals PLC
08 May 2003


Issued by Citgate Dewe Rogerson Ltd, Birmingham on behalf of Dechra
Pharmaceuticals PLC
Date: Thursday, 8 May 2003

                                                               IMMEDIATE RELEASE


          Dechra Pharmaceuticals to develop drugs with LAB International

               Partnership agreement underpins Dechra's strategy
                    to develop its veterinary drug portfolio


Dechra Pharmaceuticals PLC ('Dechra' or 'the Group') have signed a veterinary
drug development partnership agreement with Canadian based, LAB International
Inc. ('LAB').


LAB will provide research studies on selected therapeutic agents and Arnolds
Veterinary Products Limited ('Arnolds'), a subsidiary of Dechra, will be
responsible for the regulatory submissions of these products which will be
marketed and sold in the agreed countries under the Arnolds brand. Manufacturing
and formulation will be managed by Dechra's manufacturing facility, Dales
Pharmaceuticals Limited.


Various product opportunities have been identified, including a canine cardiac
product that is already under development and is anticipated to be in a position
for commercial launch by the end of Dechra's financial year ending 2004.


Ed Torr, Executive Director, Dechra Pharmaceuticals and MD of Arnolds commented:


'This partnership clearly underpins the Group's strategy to develop and
accelerate its licensed veterinary pharmaceutical portfolio. The relationship
with LAB will further enhance the international aspect of this strategy.'


'Arnolds success in developing licensing and branding our own products, together
with LAB's development expertise will enable both Companies to target major
established companion animal markets worldwide.'


Dr. Halvor Jaeger, CEO of LAB International added:


'This development agreement provides an attractive opportunity for LAB and
creates a solid foundation on which to grow a lasting partnership. The
development of new veterinary products opens an additional market to LAB and
provides access to Arnolds' expert knowledge and skills related to the marketing
and distribution of therapeutic products.'


'LAB's expertise in drug development applies equally well to human and
veterinary based pharmaceutical products, however in the veterinary market
products can be delivered to market in a much shorter timeframe, providing LAB
with an additional pathway to near-term revenue.'


The agreement between Dechra, through its trading subsidiary, Arnolds Veterinary
Products Limited ('Arnolds') and LAB International Inc. will run for an initial
five-year period and provides Arnolds with territory exclusivity in the UK,
Ireland, France and Germany, with further options on other geographical
territories.



Enquiries:

Dechra(R) Pharmaceuticals PLC       LAB International Inc.               Citigate Dewe Rogerson
Ian Page, Chief                     Dr Michael Hemprich                  Fiona Tooley/Katie Dale
Executive                                                                Tel [phone]
[e-mail]              Vice President, LAB Development      [e-mail]
Tel: [phone]            Laval, Quebec, Canada                
                                    [e-mail]
                                    Tel: [phone]

Ed Torr, Executive Director         James Smith, M.Sc  
[e-mail]               The Equicom Group
Tel: [phone]            Tel: [phone]
                                    [e-mail]
Simon Evans, Group                  www.equicomgroup.com
Finance Director
Tel: [phone]       
www.dechra.com           




Editors Notes:


About LAB

www.labinc.ca

Established in 1998, LAB International Inc. (TSX: LAB) is a drug development
company, comprised of LAB Development with a pre-clinical contract research
organization (CRO), LAB Pre-Clinical. LAB Pre-Clinical is a growing, profitable
CRO with an experienced scientific team of more than 110 employees in 75,000 sq.
ft. of facilities. LAB Development is focused on developing promising new and
generic therapeutics. By leveraging the expertise, infrastructure and stable
revenue stream of LAB Pre-Clinical, LAB Development offsets the costs and avoids
the risks associated with traditional drug research and development. LAB's
common shares trade on The Toronto Stock Exchange ('TSX') under the symbol 'LAB'
with 28.4 million shares outstanding.


About Dechra

www.dechra.com

Dechra Pharmaceuticals are specialists in the UK and international veterinary
and animal healthcare markets.


Quoted on the London Stock Exchange (under pharmaceuticals and biotech: Reuters:
DPH.L), the business is split into four businesses: National Veterinary Services
('NVS'), Arnolds Veterinary Products ('Arnolds'), Dales Pharmaceuticals Limited
('Dales'), NationWide Laboratories/Cambridge Specialist Laboratory Services.


Arnolds

www.arnolds.co.uk

Arnolds is one of the most well respected and recognised brand names in the
veterinary markets and holds a leading position in several specialist veterinary
pharmaceutical sectors of the UK market such as endocrinology, local anaesthesia
and equine anti-inflammatory with strong positions in several other companion
animal sectors.


The success of recent introductions to Arnolds' licensed product portfolio,
including Vetoryl(R) and Felimazole(R), provides exciting opportunities for the
future. Already, preparation is underway to license these products in other key
markets.


Dales

www.dalespharma.com

Dales Pharmaceuticals, the Group's manufacturing arm is a fully licensed M.C.A.
approved plant. It produces veterinary pharmaceuticals on behalf of Arnolds, and
human pharmaceuticals for third parties on a contract manufacturing basis.



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