Acquisition of Technology

Oxford Biomedica PLC
5 February 2001


For further information, please contact:       

Oxford BioMedica plc       
Professor Alan Kingsman, Chief Executive       Tel: [phone]

Kings College, London
Melanie Gardner                                Tel: [phone]

City/Financial Enquiries:
David Simonson/Melanie Toyne Sewell
Merlin Financial Communications                Tel: [phone]

Scientific/Trade Press Enquiries:
Chris Gardner, HCC.De Facto Group              Tel:  [phone]


OXFORD BIOMEDICA: ACQUISITION OF NOVEL TECHNOLOGY FOR NERVE REGENERATION AND
ISSUE OF SHARES

Oxford, UK - 5 February 2001: Oxford BioMedica ('BioMedica' or the 'Company')
announced today that it has signed an agreement with King's College, London
that gives BioMedica exclusive use of a proprietary gene, RARb2, associated
with nerve regeneration. The gene's function was identified by Professor
Malcolm Maden's research team at King's College London. 

The combination of the gene and BioMedica's LentiVector(R) gene delivery
system could lead to a product for nerve repair in spinal injury and in
neuropathies associated with diseases such as diabetes and vascular disorders.
No products exist for these conditions at present and so there is considerable
commercial potential.

The RARb2 gene is normally inactive in adults. Professor Maden's group has
demonstrated that by reactivating the gene in adult nerve cells it can restore
the ability of nerve cells to grow after injury. A key part of a strategy to
turn this into a therapeutic product requires the use of BioMedica's
LentiVector(R) technology to deliver the gene to neurones in areas of the body
where damage has occurred. This synergistic combination opens up an exciting
new approach to the treatment of nerve damage. 

In addition the technology acquired from King's College can be used in
combination with BioMedica's Smartomics(TM) gene discovery technology to
identify new genes associated with nerve regeneration. The results from this
work may form the focus of future product development programmes. The King's
group will take part in the analysis and development of such genes.

Oxford BioMedica has made an initial payment of £180,000 under this agreement.
Subject to the achievement of specified milestones, BioMedica may make further
payments in the future, including royalties on the sale of products that use
the RARb2 gene. 

Under a separate agreement also signed today, King's College has made an
equity investment in Oxford BioMedica, subscribing for a total of 204,360
ordinary shares of 1p each at 73.4 pence per share.

Commenting on these agreements Alan Kingsman, Chief Executive of BioMedica
said: 

'We are delighted to have established a collaboration with Kings College and
to welcome the College to our shareholder list. Professor Maden is a world
leader in developmental neurobiology and the juxtaposition of his group and
our neurobiology team promises to be very powerful. The combination of our
technologies opens up some very exciting commercial opportunities and sits
well with BioMedica's increasing activity in the field of neurological
diseases and conditions.'

 
Notes to Editors

1. Oxford BioMedica

   Established in 1995, the Company specialises in the development and     
   application of gene-based therapeutics and immunotherapeutics for the  
   treatment of disease in the areas of Oncology, Neurobiology and Viral 
   Infection. In 2000 Oxford BioMedica expanded its activities by the  
   establishment of a Gene Discovery Division which applies the Company's  
   gene-based technologies in the field of genomics with the intention of 
   identifying genes that may be linked to disease. Oxford BioMedica plc was 
   floated on the Alternative Investment Market of the London Stock Exchange 
   in December 1996. 

   Currently Oxford BioMedica has corporate collaborations with Aventis, 
   AstraZeneca, IDM, Modex Therapeutics, Nycomed Amersham, Valentis, Virbac 
   and Wyeth-Ayerst. BioMedica has two products in Phase I/II clinical trials.
   MetXia(R) is in clinical trials for late-stage breast cancer (BC1) and 
   ovarian cancer (OC1), and TroVax(TM) is in clinical trials for late-stage 
   colorectal cancer.

2. King's College London

   King's is one of the two oldest and largest colleges of the University of 
   London with some 12,200 undergraduate students and over 4,100 postgraduates
   in ten schools of study.

   The College is among the UK's top four higher education institutions for   
   the number of highest-rated subject-areas for research quality.  It is in  
   the top group of five universities for research earnings and has an annual 
   turnover of £285 million and research income from grants and contracts in 
   excess of £80 million (1999-2000).

3. World Wide Web

   This release is also available on the World Wide Web at: 
   http://www.oxfordbiomedica.co.uk