Preliminary Statement

Proteome Sciences PLC
31 May 2002


                             Proteome Sciences plc


                                 PRESS RELEASE


          PRELIMINARY STATEMENT FOR THE YEAR ENDED 31ST DECEMBER, 2001


                        5% PLACING TO RAISE £2.6 MILLION


For Immediate Release                              31st May, 2002

                                   HIGHLIGHTS

  • Proposed acquisition of Xzillion, the proteomics division of Aventis R&T,
    for £12.6million through the issue of 18 million Proteome Sciences ordinary
    shares at a price of 70 p per share. (See separate announcement made earlier
    today)

  • Xzillion is entirely complementary to the existing activities of Proteome
    Sciences. The acquisition provides critical mass and high throughput
    capacity to combine with Proteome Sciences' existing high sensitivity
    protein separation and characterisation techniques.

  • Placing with institutions to raise £2.6million at 58p per share,
    representing 5% of ordinary share capital.

  • Preliminary results:

      • Major high sensitivity proteomics facility opened at Kings College,
        London.
      • Intronn Inc completed a $7million funding in October 2001.
      • Veri-Q Inc formed to acquire synthetic oligonucleotide and quality
        control marker technologies. Proteome Sciences owns a 55% interest.
      • Loss for 12 months to 31 December 2001 of £2,073,071 (loss
        £1,405,447).

  • Current year progress:

      • Patent granted in Australia to use blood for detection of prions in
        nvCJD and BSE in cattle.
      • New data provides a high specificity and predictive accuracy blood
        test for stroke.
      • New biomarkers identified in blood for acute organ rejection.

  • Commercialisation

      • James Green appointed as Business Development Director in April 2002.
      • Active discussions in progress with short list of major diagnostics
        companies for both stroke and TSE.
      • License and strategic collaboration agreements anticipated this year.


With respect to Proteome Sciences' progress and prospects, Christopher Pearce,
Chief Executive of Proteome Sciences, commented:


        'We have come a very long way in 2001 and the prospects for proteomics
        look outstanding. Commercialisation is anticipated this year by way of
        license and research agreements in stroke and TSE, establishing
        significant valuations for the biomarkers from our existing research
        projects and new strategic alliances are expected to address other areas
        of disease.


        'The proposed acquisition of Xzillion will be entirely complementary to
        our existing proteomics programmes and will provide us with critical
        mass and high throughput capabilities, taking us closer to drug
        discovery and lead optimisation. This deal includes a strategic research
        agreement with Aventis Pharma in proteomics.


        'The capital expenditure at King's College Laboratory is substantially
        completed, and with no borrowings other than a small amount of equipment
        finance, the £2.6m placing of shares announced today, combined with the
        cash of £3.5m that will be acquired with Xzillion, will provide adequate
        working capital for the foreseeable future. The prospects look most
        encouraging and we look forward to completing the purchase of Xzillion
        at the end of June and exploiting the benefits of its integration with
        our expanding proteomics capability'.


                                          ENDS


Attached: Full text of preliminary statement, unaudited consolidated profit and
loss account and notes to the financial information.

For further information please contact:

Proteome Sciences plc                Tel : [phone]

Christopher Pearce, Chief Executive  e-mail :  [e-mail]

www.proteome.co.uk

Public Relations for Proteome Sciences

Ikon Associates

Adrian Shaw                          Tel : [phone]

                                     Mobile : + 44(0) 797 9900733

                                     e-mail : [e-mail]



Notes to Editors

Proteome Sciences plc applies high sensitivity proteomics to identify and
characterise differential protein expression in diseases for diagnostic,
prognostic and therapeutic applications. It has to date developed sensitive
blood assays for stroke, nvCJD, BSE and solid organ transplantation.


The main focus of its research currently addresses neurological,
neurodegenerative, diabetes/obesity, oncology and cardiovascular conditions.
Commercialisation of these programmes will be effected through strategic
partnerships.


Proteome Sciences is also the largest shareholder in Intronn Inc., the US
Company that has developed SMaRTTM, a technology able to modify gene expression
at the mRNA level.


         Preliminary statement for the 12 months to 31st December 2001.


Review of Activities


The year ended 31st December 2001 has seen a period of major transformation and
achievement for the Company as scientific attention increasingly concentrates on
proteins and protein modification following the sequencing of the human genome
in February 2001. This has focused the spotlight on proteomics and the crucial
role that it will play in addressing disease.


In 2001, Proteome Sciences successfully changed from being a virtual company,
funding research externally in major academic centres of excellence in proteins
to establishing its proprietary facility in London in high output proteomics,
combining high sensitivity protein separation with leading edge mass
spectrometry for protein identification and characterisation. A range of
strategic research partnerships and grant applications are being actively
pursued and the facility is generating useful revenue in 2002.


Intronn Inc and Veri-Q


In October 2001 Intronn Inc. completed a $7m funding against most difficult
market conditions. The company has relocated from Raleigh Durham to Maryland
with a number of key personnel appointments completed and the prospects for
SMaRTTM appear most promising. Proteome Sciences is the largest shareholder in
the refinanced Intronn Inc, with AEA and RCT of the US becoming the other major
shareholders. The non SMaRTTM assets in synthetic oligonucleotides,
standardisation and quality control markers were excluded from the Intronn
transaction and were transferred into a new corporation, Veri-Q Inc., in which
Proteome Sciences has a 55% interest. These actions have allowed the Company to
concentrate its main attention and financial resource on the outstanding
opportunities within proteomics.


Proteomics


The Company has made considerable progress with substantive news flow to date in
2002, in particular from proteomics. A patent has been granted in Australia to
use blood for the purposes of detection of prions in nvCJD and BSE in cattle.
Further new biomarkers have been identified in blood for CJD, nvCJD and BSE
(TSE) for which patent applications have been filed.




Proteome Sciences has new data from the stroke marker in blood resulting in a
test with 100 per cent specificity and positive predictive accuracy and has
established a collaboration with ReNeuron plc to identify proteins expressed in
brain repair in response to stroke to address new drug targets and potential
therapeutic entities. The stroke research is currently focussed on the
differences between ischaemic and haemorrhagic stroke and encouraging progress
is being made.


In solid organ rejection, Proteome Sciences has identified new biomarkers in
blood for acute rejection which complements the markers previously identified in
chronic rejection.


Commercialisation


The Company has made considerable advances towards commercialisation of the
proteomics portfolio, in particular in stroke and TSE. The Company appointed
James Green as Business Development Director in April 2002 and is in active
discussions with a short list of major companies for both stroke and TSE.
License and strategic collaboration agreements are anticipated this year and it
is expected that tests for these applications could be on the market in 12 to 18
months time.


In the twelve month period ended 31st December, 2001 Proteome Sciences incurred
a pre-tax loss of £2,073,071 (2000 : £1,405,447).


At the year end cash balances stood at £1,061,024. This was after incurring
exceptional costs in respect of refurbishment of the new laboratory in London
and its fitting out and equipment.


Outlook


Commenting on the Company's progress and prospects, Christopher Pearce, Chief
Executive said :


'We have come a very long way in 2001 and the prospects for proteomics look
outstanding. Commercialisation is anticipated this year by way of license and
research agreements in stroke and TSE, establishing significant valuations for
the biomarkers from our existing research projects and new strategic alliances
are expected to address other areas of disease.


The proposed acquisition of Xzillion will be entirely complementary to our
existing proteomics programmes and will provide us with critical mass and high
throughput capabilities, taking us closer to drug discovery and lead
optimisation. This deal includes a strategic research agreement with Aventis
Pharma in proteomics.


The capital expenditure at King's College Laboratory is substantially completed,
and with no borrowings other than a small amount of equipment finance, the £2.6m
placing of shares announced today, combined with the cash of £3.5m that will be
acquired with Xzillion, will provide adequate working capital for the
foreseeable future. The prospects look most encouraging and we look forward to
completing the purchase of Xzillion at the end of June and exploiting the
benefits of its integration with our expanding proteomics capability'.



Placing

Proteome Sciences announced that it has today agreed to place, through WestLB
Panmure Limited ('WestLB Panmure'), 3,286,206 new ordinary shares of 1 pence
each in the Company (the 'new ordinary shares') at a price of 58 pence per share
with institutional investors. Pursuant to such agreement, WestLB Panmure has
agreed to use its reasonable endeavours to procure subscribers, or itself to
subscribe, for the new ordinary shares. An additional 1,290,714 new ordinary
shares of 1 pence each in the Company are being placed at a price of 58 pence
per share directly with other investors.


The placing will raise approximately £2.654m for Proteome Sciences. The new
ordinary shares represent approximately 5% of the Company's current issued share
capital. The proceeds of the placing will be used to provide additional working
capital.


Application will be made to the London Stock Exchange for the new Ordinary
Shares to be admitted to trading on AIM. The Placing is conditional on Admission
becoming effective and the Placing Agreement between the Company and WestLB
Panmure becoming unconditional. It is expected that dealings will commence on
11th June, 2002. The new ordinary shares rank pari passu in all respects with
the issued ordinary shares of the Company.


                                    - Ends -


Unaudited consolidated profit and loss account

For the year ended 31st December 2001

                                                                        Year ended              Year ended

                                                                        31st December           31st December
                                                                        2001                    2000
                                                                        £                       £

Administrative expenses                                                 (1,455,005)             (1,149,995)
Realised exchange gains                                                 65,213                  303,158
Research and development expenses                                       (720,856)               (695,018)
Other operating expenses                                                -                       (35)
                                                                        __________              __________
Operating loss                                                          (2,110,648)             (1,541,890)
Continuing operations                                                   (2,028,489)             (1,208,039)
Discontinued operations                                                 (82,159)                (333,851)
                                                                        (2,110,648)             (1,541,890)
Share of associates' operating loss                                     (33,774)                -
Interest receivable                                                     104,197                 158,135
Interest payable and similar charges                                    (32,846)                (21,692)
                                                                        __________              __________

Loss on ordinary activities before taxation                             (2,073,071)             (1,405,447)
Tax on loss on ordinary activities                                      69,919                  -
                                                                        __________              __________
Loss on ordinary activities after taxation                              (2,003,152)             (1,405,447)
Minority interest                                                       26,128                  -
Loss for the financial year                                             (1,977,024)             (1,405,447)
                                                                        __________              __________
Loss per share

Basic and diluted                                                       (2.16p)                 (1.59p)
                                                                        _________               _________




        Notes to the financial information

 1. There has been no change to any of the accounting policies set out in the
    2001 statutory accounts.


2.  Following the loss of £1,977,024 incurred in the period, the
    Directors do not recommend the payment of a dividend.

3.     a.     The calculation of the loss per share for the year
              ended 31st December 2001 is based on the loss for the year of
              £1,977,024 and on 91,538,400 Ordinary Shares, being the number
              of shares in issue and ranking for dividend during the year.

       b.     The calculation of the loss per share for the year
              ended 31st December 2000 is based on the loss for the year of
              £1,405,447 and on 88,552,458 Ordinary Shares, being the weighted
              average number of shares in issue and ranking for dividend
              during the year.

4.  The preceding financial information does not constitute statutory
    accounts as defined in Section 240 of the Companies Act 1985. The
    financial information for the year to 31st December 2000 is based on the
    statutory accounts for that year. These accounts, upon which the
    auditors issued an unqualified opinion, and which did not contain any
    statement under Section 237(2) or (3) of the Companies Act 1985, have
    been delivered to the Registrar of Companies.

        The auditors have not yet reported on the full statutory accounts
        for the year ended 31st December 2001 which will be posted to
        shareholders next month. After that time they will also be available at
        the Company's registered office: Coveham House, Downside Bridge Road,
        Cobham, Surrey KT11 3EP.


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