Disposal of shareholding

15 September 2004

                   Disposal of Shareholding in Diagonal plc                    

As previously announced, Microgen plc accepted the Offer from Morse plc for its
shareholding in Diagonal plc ('Diagonal') which was satisfied by a combination
of cash and ordinary shares in Morse plc.

On 14 September 2004, Microgen plc finalised the disposal of its entire holding
in Morse plc and consequently can confirm that it will recognise an exceptional
profit before tax of approximately £0.56 million during the current financial
year relating to its stake in Diagonal. The exceptional profit before tax takes
account of the costs associated with the evaluation of whether or not to make
an Offer for Diagonal and includes the final dividend paid by Diagonal.

Contact:

Mike Phillips, Group Finance Director 01753-847122

Giles Sanderson, Financial Dynamics 020-7831-3113

Microgen plc

Mike Phillips, Group Finance Director 01753 847122

UBS

Nick Adams 020-7567-8000

END