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Xenova Group PLC (XEN)

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Thursday 05 June, 2003

Xenova Group PLC

Re Contract

Xenova Group PLC
05 June 2003

                                 Xenova Group plc
                 Xenova Secures Further Manufacturing Contract
                                 With Pharmexa

Slough, UK, 5th June 2003 - Xenova Group plc (NASDAQ NM: XNVA; London Stock
Exchange: XEN) today announced the signing of a significant, two-year
Manufacturing, Development and Clinical Supply Agreement with Pharmexa A/S (CSE:
PHARMX) for the contract manufacture of clinical supplies of a vaccine targeting
the human HER-2 protein. Manufacture will take place at Xenova's Clinical Trial
Manufacturing Facility in Cambridge.

The HER-2 protein is commonly found in association with several cancers, such as
breast cancer.  Pharmexa has developed the AutoVacTM Protein technology to raise
a highly specific controllable antibody based immune response against this and
other self-proteins. Pre-clinical studies indicate that AutoVacTM vaccination
against the HER-2 protein may be an effective therapy against breast cancer.

Xenova has already supplied Pharmexa with clinical trial material under a
previous agreement.  Under this new agreement, additional supplies of the
vaccine will be manufactured by Xenova for Pharmexa's Phase II clinical trials
scheduled to begin in 2004.

David Oxlade, CEO of Xenova commented, 'We are excited to contribute to the
development of a promising new product against breast cancer. This new contract
for the manufacture of recombinant protein vaccine is a well-deserved
endorsement of the expertise we have in this area and allows Xenova to maximise
the efficient utilisation of our biologicals process development and
manufacturing capabilities.'

Jakob Schmidt, CFO of Pharmexa said of the agreement, 'We recently received
approval by the US health authorities to initiate a Phase I clinical trial in
the United States of our HER-2 AutoVacTM protein vaccine in breast cancer, and
are now preparing for a Phase II trial in 2004. We have worked with Xenova
before and have been impressed by their expertise and commitment to this

                                    - ends -

UK:                                              US:
Xenova Group plc                                 Trout Group/BMC Communications
Tel: +44 (0)1753 706600                          Tel: 001 212 477 9007
David A Oxlade, Chief Executive Officer          Press: Brad Miles (Ext 17) Daniel Budwick (Ext 14)
Daniel Abrams, Group Finance Director            Investors: Jonathan Fassberg (Ext 16) Lee Stern (Ext 22)

Jon Davies, Corporate Communications

Financial Dynamics
Tel: +44 (0)207 831 3113
David Yates/Ben Atwell

Notes to Editors

About Pharmexa A/S

Pharmexa A/S (CSE: PHARMX) is a leading company in the field of active
immunotherapy for the treatment of serious chronic diseases. Pharmexa's
proprietary AutoVacTM technology platform is broadly applicable, but the company
has focused its resources on a number of cancer forms and chronic inflammatory
diseases, with research and development programs targeted towards breast cancer,
rheumatoid arthritis and bone degeneration. Collaborative agreements include
Schering-Plough and H. Lundbeck.

About Xenova Group

Xenova Group plc's product pipeline focuses principally on the therapeutic areas
of cancer and immune system disorders.  Xenova has a broad pipeline of
programmes in clinical development.  The Group has a well-established track
record in the identification, development and partnering of innovative products
and technologies and has partnerships with significant pharmaceutical and
biopharmaceutical companies including Lilly, Pfizer, Celltech, Genentech, QLT
and Millennium Pharmaceuticals.

For further information about Xenova and its products please visit the Xenova
website at

For Xenova: Disclaimer to take advantage of the 'Safe Harbor' provisions of the
US Private Securities Litigation Reform Act of 1995. This press release contains
'forward-looking statements,' including statements about commercialization of
products. Various risks may cause Xenova's actual results to differ materially
from those expressed or implied by the forward looking statements, including:
our dependence upon strategic alliance partners to develop and commercialize
products and services; and the difficulties inherent in scaling up the
manufacture of biologic products.  For a further list and description of the
risks and uncertainties we face, see the reports we have filed with the
Securities and Exchange Commission.  We disclaim any intention or obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

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

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