Acquisition of Freehold Property

26 July 2005

       Acquisition of Freehold Property at Ancells Business Park, Fleet        

Microgen announces that it has acquired the freehold of Victory House, Ancells
Business Park, Fleet, Hampshire from British Overseas Bank Nominees Ltd and
WGTC Nominees Ltd for a purchase price of £5.25 million payable in cash. The
acquisition has been initially funded from Microgen's existing cash resources,
however, it is intended that new commercial mortgage facilities will be entered
into to finance up to 80% of the purchase price.

Victory House is a two storey office building in a commercial area of Fleet,
with approximately 23,700 square feet of available space and has 122 car
parking spaces. The Board intends to consolidate the current head office
functions located in Windsor, together with the operations of the two recent
acquisitions of R/Base Limited (Camberley) and Lynx Wealth Management Systems
Limited (Eastleigh) into the new facility in Fleet. In addition, some software
development and support operations will be moved into the Fleet facility
together with some operations currently based in Microgen's London office.

The new facility will provide Microgen with more flexibility to meet the space
requirements of the Group whilst also providing the benefits of consolidation
of the existing operations. The consolidation of these operations into Fleet
will give rise to an exceptional operating charge in the second half of the
current financial year which is not expected to exceed £0.25 million.

The transaction is expected to be broadly earnings neutral.

Contact :

Mike Phillips, Group Finance Director   01753-847122                           
                                                                               
Giles Sanderson, Financial Dynamics     020-7831-3113                          
                                                                               
Ben Way, Financial Dynamics