Product Launch

Avacta Group plc

Collaboration agreement and completion of prototype detection system

Laser based gas analysis and detection - industrial and clinical markets

Avacta Group plc ("Avacta"), which develops detection and analysis technology
aimed at the pharmaceutical, healthcare, security and industrial sectors, is
pleased to announce that it has signed a collaboration agreement with V&F
Medical Development GmbH ("V&F"), and, separately, has completed a detection
prototype for a constituent of breath, potentially positioning Avacta strongly
in the high value clinical diagnostics market.

Avacta's laser based trace gas detection technology was gained through the
acquisition of Oxford Medical Diagnostics Ltd ("OMD") in December 2007. This
provided Avacta with important strategic opportunities in clinical diagnostics
through the analysis of breath and gases. OMD's technology has high levels of
sensitivity and rapid response times, low maintenance, low costs and relative
simplicity when compared with competing technologies. These qualities make it
highly suitable for a wide range of applications within industrial and
diagnostic environments.

Avacta's technology has significant potential for breath analysis as well as
for the analysis of gases produced by clinical samples such as urine, blood and
faeces. Bacterial infections which are present in these samples produce gases
and the analysis of these is called "headspace analysis". At present headspace
analysis requires large and very expensive centralised equipment. Avacta's CEAS
technology has the potential to replace these with a low cost headspace
analysis product and, to this end, Avacta has signed a collaboration agreement
with V&F, an Austrian producer of high quality mass spectrometers.

This collaboration agreement concerns a programme of research and development
to identify key headspace gases for selected bacterial infections and to
determine the performance requirements for such a product with a view to a full
co-development agreement being signed.

In a separate development Avacta has completed a prototype product for
detection of a constituent of human breath which is aimed at clinical use. In a
clinical setting, the sensitive detection of this particular gas in breath
allows some gastrointestinal problems to be tested for and monitored. Avacta is
now pursuing protection of its intellectual property in this application area
and commercialisation in both industrial and healthcare testing markets.

Alastair Smith, Chief Executive of Avacta commented :

"We believe that the potential size of the markets for clinical analysis of
breath and headspace gases is large and was a key factor in our decision to
acquire OMD late last year. Clinical diagnostics products are still in early
development stages but this collaboration with V&F and the completion of the
prototype breath analysis system brings us significantly closer to market and
is a major step forward in achieving our clinical diagnostics ambitions for
OMD.

"I am very pleased with the progress of OMD since acquisition and there has
been considerable interest from potential commercial partners for a range of
industrial gas detection applications and I hope to report on further progress
soon."

                                                                   28 July 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.