Re Agreement

Avacta Group plc

Collaboration with Cancer Research UK, Leeds University and Leeds Teaching
Hospitals NHS Trust for Diagnostic Technology

Cancer Diagnosis using Avacta's laser analysis technology

Avacta Group plc ("Avacta"), which develops detection and analysis technology
aimed at the defence & security, pharmaceutical and clinical diagnostics
markets, announces that it has formed an agreement with Leeds University;
through research and development at the Leeds Teaching Hospitals funded in part
by Cancer Research UK to modify and apply Avacta's laser analysis technology to
the early diagnosis of various types of cancers.

Avacta is currently developing technology that will help biopharmaceutical
companies bring drugs to market quickly and cheaply by identifying problems
with new compounds at a much earlier stage than is currently possible,
potentially providing huge cost savings in the drug development pipeline. The
same technology that identifies problems with biological therapeutic molecules
could be used to identify abnormalities of cells and tissue that are indicative
of cancer.

Pilot studies, conducted by Mr Andrew Harris, funded by Cancer Research UK,
have provided encouraging results and now further funding for three years
research and development has been provided for Mr Harris through a Cancer
Research UK Clinical Research Training Fellowship to continue the development
of diagnostic tools with Avacta. The research will be based at Avacta and the
University of Leeds and carried out in conjunction with the Leeds General
Infirmary.

By modifying Avacta's laser analysis platform it is hoped that a specific
technology, capable of analyzing tissue samples and providing rapid diagnosis,
will be developed. The aim is to aid significantly the detection of cancerous
matter reliably and speedily during routine screenings and surgical operations.

Professor Alastair Smith, Chief Executive, Avacta, commented:

"We are all very excited about the possibility of applying the technology we
are developing for the biopharmaceutical sector to clinical diagnostics. The
potential benefits of a rapid diagnostic technology to assist pathologists or
help surgeons such as Mr. Harris define the extent of tumours during an
operation are enormous. We are working hard with our partners on the
development of such a tool and the Cancer Research UK funding for Mr. Harris is
both an enormous assistance and tremendous encouragement."

Mr Andrew Harris, Cancer Research UK Clinical Research Training Fellow, said:

"To make significant advances in real-time diagnosis, collaboration between
clinicians and scientists is essential. Here we have what may be a unique
opportunity to combine biophysics expertise in laser analysis and data
processing with experience of clinical need and access to clinical samples to
prove the technology. I am very excited about the prospect of working with
Avacta to deliver what could be a new age in cancer diagnostics and I am
extremely grateful to Cancer Research UK for supporting this work."

                                                                 13 August 2007

Enquiries:

Avacta Group plc                          Tel: [phone]                 
                                                                             
Alastair Smith, Chief Executive                                              
                                                                             
Nexus Financial Ltd                       Tel: [phone]                 
                                                                             
Nicholas Nelson/Kathy Boate               [e-mail]   
                                                                             
WH Ireland Ltd (Nominated Adviser)        Tel: [phone]                 
                                                                             
David Youngman/Robin Gwyn                                                    
                                                                             
BankOra Ltd                               Tel: [phone]                 
                                                                             
Michael Brennan/Henry Turcan                                                 

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 Avacta's
development programmes. 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.

About Cancer Research UK

Together with its partners and supporters, Cancer Research UK's vision is to
beat cancer. The charity carries out world-class research to improve
understanding of the disease and find out how to prevent, diagnose and treat
different kinds of cancer. It ensures that its findings are used to improve the
lives of all cancer patients. Cancer Research UK helps people to understand
cancer, the progress that is being made and the choices each person can make.
The charity works in partnership with others to achieve the greatest impact in
the global fight against cancer. For further information about Cancer Research
UK's work or to find out how to support the charity, please call 020 7009 8820
or visit www.cancerresearchuk.org