New Cancer Collaboration

Sareum Holdings PLC
06 December 2004


For Immediate Release                                            6 December 2004

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

     Sareum Announces Collaboration with Cancer Research Technology Limited

Sareum Holdings plc (AIM: SAR), the structure-based drug discovery and services
business, is pleased to announce it has entered into a collaborative agreement
with Cancer Research Technology Limited (CRT), the oncology focused technology
transfer and development company.

Under the terms of the agreement, which is on a fee-for-service basis and is for
6 months' duration, Sareum will provide computational chemistry expertise to
support several of CRT's therapeutic discovery programmes in cancer. Financial
terms of the agreement were not disclosed.

Commenting on the announcement, Sareum's Chief Executive Officer, Dr Tim
Mitchell, said: "We are delighted that we have been chosen by Cancer Research
Technology to provide these drug discovery services and we look forward to
making a valuable contribution to their development programmes."

Commenting on the announcement, CRT's Head of Medicinal Chemistry, Dr Tony
Raynham, said: "Importantly, Sareum's core capabilities in computational
chemistry will support CRT's medicinal chemistry department in the development
of drug candidates arising from the research activities of our parent charity
Cancer Research UK and our other prestigious international partners."

For further information:


Sareum Holdings                                                 01223 497700
Tim Mitchell, Chief Executive Officer

Cancer Research Technology Limited                              0207 679 6728
Tony Raynham, Head of Medicinal Chemistry

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
collaborative agreements with Inpharmatica Ltd. and Millennium Pharmaceuticals,
Inc.  Sareum also intends to license out any 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

About Cancer Research Technology Limited

Cancer Research Technology Limited (CRT) is a specialist technology transfer
company which aims to develop new discoveries in cancer research for the benefit
of cancer patients. CRT is wholly owned by Cancer Research UK, the largest
independent funder of cancer research in the world. CRT works closely with
leading international cancer scientists and their institutes to protect
intellectual property arising from their research and to establish links with
commercial partners. CRT facilitates the discovery, development and marketing of
new cancer therapeutics, vaccines, diagnostics and enabling technologies.
Further information about CRT can be found at www.cancertechnology.co.uk.

Cancer Research UK is Europe's leading cancer charity, dedicated to research
into the causes, prevention and treatment of cancer. The charity supports the
work of 3,000 scientists, doctors and nurses in over 80 academic centres across
the UK, with an annual scientific spend of more than £213 million. Further
information about Cancer Research UK can be found at www.cancerresearchuk.org.


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