Collaboration Agreement

Sareum Holdings PLC
22 November 2004


For Immediate Release                                           22 November 2004

                              SAREUM HOLDINGS PLC
                          ("Sareum" or the "Company")

     Sareum Announces Collaboration with Leading Biopharmaceutical Company

Sareum Holdings plc (AIM: SAR), the structure-based drug discovery and services
business admitted to AIM in October 2004, is pleased to announce that it has
entered into a collaborative agreement with Millennium Pharmaceuticals, Inc. to
generate chemical compound libraries to support drug discovery programmes at
Millennium.

Under the terms of the agreement, which is on a fee-for-service basis, Sareum
will utilise its skills in computational chemistry, automated medicinal
chemistry and high-throughput purification to design and synthesise a library of
compounds for Millennium to screen against their drug targets.  Financial terms
were not disclosed.

Commenting on the agreement, Sareum's Chief Executive Officer, Dr Tim Mitchell,
said: "This is the second collaboration that the Company has announced since
admission to AIM just six weeks ago and we are delighted that Millennium has
chosen Sareum to provide these drug discovery services.  This is a very exciting
project and we look forward to a successful delivery."


For further information:

Sareum Holdings                                                 01223 497700
Tim Mitchell, Chief Executive Officer

Buchanan Communications                                         020 7466 5000
Mark Court, Mary-Jane Johnson

Notes for editors:

About Sareum Holdings plc

Sareum Holdings plc is a structure based drug discovery business headquartered
in Cambridge, UK. The Company was formed in August 2003 to discover new drugs
for the treatment of cancer and inflammation and to provide a range of drug
discovery services to the pharmaceutical industry. Sareum's unique approach aims
to halve the time it takes to discover new drug candidates.

Structure-based drug discovery involves the determination of a disease causing
protein's three-dimensional structure. Once the structure is known, novel
chemical entities are designed to 'lock-in' to the protein with the aim of
reversing or arresting a disease's progression.

Sareum's approach to structure based drug discovery is to produce multiple
recombinant proteins primarily through a baculovirus expression system;
determine their structure using x-ray crystallography; and then use the
Company's computational chemistry expertise to create virtual, focused libraries
of new chemical entities designed to interact with the target protein. Sareum
then uses its high-throughput medicinal chemistry platform to rapidly synthesise
these molecules and develop the most promising into potential drug candidates.

Sareum offers its accelerated drug discovery capabilities on a fee basis to the
pharmaceutical and biotechnology industries and has recently signed a
collaborative agreement with Inpharmatica Ltd.  Sareum also intends to license
out its internally generated drug candidates at the Phase I or Phase II clinical
trials stage.

Sareum joined the Alternative Investment Market of the London Stock Exchange in
October 2004 and trades under the symbol SAR. For further information, please
visit www.sareum.co.uk


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