Re Agreement

Avacta Group Plc                                

                         Collaborative Agreement with                          

                  Pharmaceutical Research Company, SSCI Inc.                   

Avacta Group Plc ("Avacta" or the "Company"), which develops detection and
analysis technology aimed at the defence & security, pharmaceutical and
clinical diagnostics markets, announces that it has entered into a
collaborative business development agreement with SSCI Inc. ("SSCI"), of West
Lafayette, USA.

The collaboration is expected to expand and enhance methods, applications and
instrumentation used in the characterisation and analysis of small and large
molecules for drug development. The Directors believe that such collaboration
may lead to the creation of proprietary technologies with commercial
applications.

Additionally, the two companies will work together to develop new strategies
for procuring and enforcing patents in the aforementioned areas. SSCI hopes to
leverage Avacta's extensive and recognised expertise in biopharmaceutical
analysis, biophysics and spectroscopy and Avacta hopes to benefit from SSCI's
extensive experience in drug development, computational analysis and the
development of advanced analytical methods.

Professor Alastair Smith, Chief Executive, Avacta, commented:

"This is an important collaboration for Avacta and will help position us at the
forefront of contract pharmaceutical research. We are excited to be working
with SSCI who have a huge presence in the market, complementary expertise to
our own and an extensive customer base."

                                                              19 September 2006

Contacts:

Avacta Group Plc                      Tel: [phone]                       
                                                                               
Alastair Smith, Chief Executive                                                
                                                                               
Nexus Financial Ltd                   Tel: [phone]                       
                                                                               
Nicholas Nelson, Director             [e-mail]         

Notes to Editors:

Avacta Group Plc: The Avacta Group is a biophysics group which combines the
precision of physics with the power of biology for the development of
innovative enabling technologies for the biopharmaceutical, clinical
diagnostics, defence and homeland security sectors. Avacta Analytical Limited
("Avacta Analytical") is a wholly owned subsidiary of Avacta Group Plc which
specialises in the application of its extensive expertise in biophysics,
optical spectroscopy, surface analysis and microscopy to biopharmaceutical,
pharmaceutical and healthcare markets. Avacta Analytical has developed a
"Biophysical Toolkitâ„¢" which facilitates detailed characterisation of the
higher order structure of biopharmaceutical materials. The Toolkit is designed
for a range of applications, for example in comparability studies, stability
testing and formulation development, for evaluating the effects of the
biomanufacturing processes on protein structure and aggregation and for
characterising viral vaccines. Avacta Analytical also has key personnel with
long track records of providing scientific support and expert witness services
in pharmaceutical litigation in Europe, the US and Canada.

SSCI Inc: SSCI provides comprehensive contract based research and analytical
services to the pharmaceutical, specialty, industrial, and fine chemical
industries in the characterisation and chemistry of solid materials from its
laboratories which occupy a 32,000 sq ft facility in West Lafayette, Indiana
USA. SSCI helps its pharmaceutical industry clients to accelerate the pace of
drug development and improve the quality of the drugs that they offer. SSCI was
founded in 1991 to provide professional development short courses and other
educational services to the pharmaceutical industry. Since then, SSCI has
greatly expanded its capabilities and personnel. SSCI's primary business now is
contract drug development and improvement.

All trademarks, registered trademarks and trade names used in this announcement
are the property of their respective owners.