Product Development Partnership

Avacta Group plc

Product development partnership

Laser based gas detection for safety applications within the petrochemical
industry

Avacta Group plc ("Avacta"), which develops detection and analysis technology
aimed at the pharmaceutical, healthcare, industrial and security sectors, is
pleased to announce that it has entered into a product development partnership
with one of the market leaders in toxic and flammable gas detection for the
development of a new hydrogen sulphide (H2S) sensor for industrial safety
applications.

Avacta's trace gas detection exploits its cavity enhanced absorption
spectroscopy ("CEAS") technology. Using this technology Avacta recently
announced the completion of a trace gas analysis prototype for a constituent of
breath and a collaboration agreement for clinical gas diagnostics with V&F
Medical Instrumente (Austria). However, the same CEAS detection engine is
equally applicable within industrial settings as within medical diagnostics and
provides significant improvements over existing `industry standard' detection
technologies such as electrochemical sensors.

H2S is a colourless toxic gas and may be found wherever a mixture of
hydrocarbons and sulphur occurs, which happens most commonly within
petrochemical processing environments. Despite being associated with an odour
of rotten eggs, H2S quickly deadens the sense of smell, therefore potential
victims may not be aware of its presence until too late.

While electrochemical sensors can adequately detect H2S at the regulated
exposure limit of 5ppm they possess inherent limitations such as: limited
lifetimes, slow response and recovery times, plus the possibility for them to
`sleep' and also be poisoned by contaminating gases. Furthermore,
electrochemical sensor failures are undetectable as they continue to give an
`all OK' reading when they cease to operate, even in the presence of the target
gas. This clearly presents a dangerous scenario for workers and a highly
expensive maintenance schedule for companies, who are required to continuously
check and replace electrochemical sensors.

Under the terms of the agreement Avacta has entered into a product development
partnership aimed at providing the market with a CEAS based H2S detection
solution which overcomes the limitations of electrochemical sensors, thereby
improving working environment safety. It will also provide increased economic
benefit to companies through the opportunity to significantly reduce
maintenance costs. Avacta's partner (the name of which cannot be given for
reasons of commercial sensitivity) is an established manufacturer and
distributer of, inter alia, toxic gas detection equipment throughout the world
and it is intended that Avacta will receive a royalty-based licence payment on
product sales, which Avacta and its partner believe has the potential to be
several hundred units per annum.

Alastair Smith, Chief Executive of Avacta commented

"We are very pleased to be working closely with one of the market leaders on
the application of our CEAS technology for an H2S detection solution. Our
partner is ideal to co-develop and commercialise this product and other
products based on our CEAS technology. Industrial gas sensing products will
provide near term revenues to underpin the continued development of our gas
sensing technology towards valuable clinical applications."

                                                                 14 August 2008

Enquiries:

Avacta Group plc                       Tel: [phone]                    
                                                                             
Alastair Smith, Chief Executive                                              
Officer                                                                      
                                                                             
Tim Sykes, Chief Financial Officer                                           
                                                                             
Haggie Financial LLP                   Tel: [phone]                    
                                                                             
Nicholas Nelson / Kathy Boate          [e-mail]          
                                                                             
WH Ireland Limited                     Tel: [phone]                    
                                                                             
David Youngman                                                               
                                                                             
Novum Securities Limited               Tel: [phone]                    
                                                                             
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.