Licensing Agreement

Synairgen plc
14 August 2006


14 August 2006

                                  SYNAIRGEN PLC
                         ('Synairgen' or the 'Company')


             INTERFERON -LAMBDA INTELLECTUAL PROPERTY LICENSED FROM
                              IMPERIAL INNOVATIONS


    New drug discovery candidate for treatment of asthma added to Synairgen
                                   portfolio


Southampton, UK - Synairgen plc (AIM: SNG), the drug discovery company focused
on the underlying causes of asthma and chronic obstructive pulmonary disease
('COPD'), announces that it has obtained an exclusive licence to certain
intellectual property from Imperial Innovations Ltd, a subsidiary of Imperial
Innovations Group plc (AIM: IVO), relating to the use of interferon -lambda
('IFN-lambda'), a recently discovered interferon, in the treatment of
respiratory disease.


The results of an Imperial College study into the production of IFN-lambda,
suggesting its role in the defence of rhinovirus infection, were published
online yesterday in Nature Medicine.


This worldwide licence complements Synairgen's existing intellectual property in
respect of the use of interferon beta ('IFN-beta') to combat respiratory attacks
associated with the common cold virus in severe asthma patients. Under the terms
of the licence, Synairgen has paid an undisclosed initial fee and will pay
milestones to Imperial Innovations based upon the development of the programme
and any potential out-licence transaction in respect of IFN-lambda which may
occur.


Interferons are produced by the body's immune system in response to viral
infection and have the ability to inhibit virus replication. Synairgen's focus
is on the rhinovirus (common cold virus), which is the most common trigger for
the worsening of asthma symptoms (otherwise known as an asthma exacerbation).
Treatment of asthma exacerbations represents a significant element of the $16
billion annual cost of the disease in the US. Synairgen's first therapy for the
treatment of asthmatics in this area is inhaled IFN-beta, which is currently in
Phase I clinical trials.


Richard Marsden, Managing Director of Synairgen said, 'This licence is a good
addition to our interferon-based anti-rhinovirus programme. There is a good body
of evidence showing IFN-beta's ability to boost the lungs' natural defence
against rhinovirus in asthmatics and studies on IFN-lambda are revealing similar
properties. We are pleased to add this potentially exciting new interferon into
our overall programme.'


                                     -Ends-

For further information, please contact:
Synairgen plc                                               Tel: [phone]
Richard Marsden, Managing Director

Hogarth Partnership                                         Tel: [phone]
Melanie Toyne-Sewell / Georgina Briscoe / Charlie Field



Notes to Editors


1. Background to Synairgen

Synairgen was founded by Professors Stephen Holgate, Donna Davies and Ratko

Djukanovic, a world-renowned respiratory research team from the University of
Southampton, and spun-out from the University of Southampton in June 2003. In
October 2004, the Company floated on AIM, raising £10.0 million (£9.0 million
net of expenses) to enhance its research and development capabilities and invest
in its proprietary programmes. Further information may be found at
www.synairgen.com.


2. Online publication in Nature Medicine

A brief communication entitled 'Role of deficient type III interferon-lambda
production in asthma exacerbations' was published online in Nature Medicine on
13 August 2006 and may be found at www.nature.com/nm/journal/vaop/ncurrent/
index.html.


3. Asthma statistics

   • In the United States, there are approximately 20 million asthmatics (1).
   • The annual economic cost of asthma to the US is $16 billion (1).
   • There are 1,900,000 emergency department visits due to asthma per year
    in the US (1).
   • The cost of emergency department visits and in-patient care in relation
    to asthma in the US is $4.1billion (1).
   • There is evidence that as many as 80% of asthma exacerbations which
    resulted in emergency department visits can be associated with rhinovirus
    infections (3).
   • It has been shown that the severest 10% of the asthmatic population take
    up over 50% of the total cost of the disease (2).


4. Information about common colds and rhinovirus

   • Adults get an average of two to four colds per year, mostly between
    September and May (4).
   • Young children suffer from an average of six to eight colds per year
    (4).
   • Asthmatics contract as many colds as non-asthmatics (5).
   • Asthmatics have similar upper respiratory tract (nose and throat)
    symptoms as non-asthmatics (5).
   • Asthmatics frequently suffer lower respiratory tract (the airways in the
    lung) infections (5).


References

1.      American Lung Association. Trends in Asthma Morbidity and Mortality.
2005 (www.lungusa.org)

2.      P.J. Barnes, B. Jonsson, J.B. Klim: The Costs of Asthma. Eur Respir J
1996 9, 636-642

3.      S. Kling et al: Persistence of Rhinovirus RNA after asthma exacerbations
in children. Clin Exp Allergy 2005 May 35 (5) 672-8

4.      Cold and Flu Guidelines: The Common Cold (www.lungusa.org)

5. J.M. Corne et al: Frequency, severity and duration of rhinovirus infections
in asthmatic and non-asthmatic individuals: a longitudinal cohort study. Lancet
2002 Mar 9; 359 (9309):831-4




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