Customer Agreement

Avacta Group plc Delivery of prototype mobile chemical detection system to MOD Porton Down Avacta Group plc ("Avacta"), which develops detection and analysis technology aimed at the pharmaceutical, diagnostics and defence & security markets, announces it has successfully delivered on its contract with the UK Ministry of Defence Laboratories at Porton Down. As announced on 3 September 2007, Avacta entered into a contract with the Defence Science and Technology Laboratory (Dstl) to develop a prototype device for mobile detection of chemicals in the field using its laser detection and diagnostic technology. Avacta completed its development work on schedule and has delivered the technology to the MOD for testing. The aim is to provide improved capabilities for the identification of chemicals at a safe distance which could be of significant benefit to the homeland security and defence sectors. The Directors believe that there are commercialisation opportunities for Avacta both in military and civilian markets, as the rapid detection of unknown substances at a safe distance could have numerous applications and strong demand. Professor Alastair Smith, Chief Executive, Avacta, commented: "The development team has done an outstanding job to deliver a complex and advanced system on time to the MOD and is expecting a positive outcome following the testing now being undertaken. We are working with Porton Down throughout this phase and are excited about developing the final product for use in the field. This long range chemical identification system could be of great benefit to security and defence operations world wide. It is one of several product developments in Avacta for portable chemical and biological threat detection that I am delighted to report are progressing well and generating strong interest in the market". 11 July 2008 Enquiries: Avacta Group plc Tel: 0870 835 4367 Alastair Smith, Chief Executive Officer Tim Sykes, Chief Financial Officer Haggie Financial LLP Tel: 020 7417 8989 Nicholas Nelson / Kathy Boate Nicholas.nelson@haggie.co.uk WH Ireland Limited Tel: 0161 832 2174 David Youngman Novum Securities Limited Tel: 020 7562 4700 Henry Turcan / Michael Brennan Notes to Editors: About Avacta Avacta was spun-out from the University of Leeds in 2004 by its current management team as a biophysics company, with the aim of combining the disciplines of physics and biology to develop innovative technologies and expert technical services to address needs in the pharmaceutical, defence and clinical diagnostics markets. Avacta has a core bio-analytical technology development programme addressing the needs of the biopharmaceutical sector to fully characterise their new products at the earliest stage in their development to reduce the risk of late stage failure. High value solutions in defence and clinical diagnostics are also being provided by these core bio-analytical technologies. A successful and growing part of the Avacta business model is its technical services arm, Avacta Analytical Ltd, which is focused on providing leading edge contract research to the biopharmaceutical and healthcare/personal-care materials sectors. Avacta listed on AIM in August 2006 through the reverse takeover of Readybuy plc which changed its name to Avacta Group plc.
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