Re Agreement

Avacta Group plc

Development Contract with the MOD's Defence science and technology laboratory

Field Detection of Liquid Chemicals

Avacta Group plc ("Avacta"), which develops detection and analysis technology
aimed at the defence & security, pharmaceutical and clinical diagnostics
markets, announces a contract with the Defence science and technology
laboratory (Dstl), which is part of the UK Ministry of Defence.

Avacta is developing methods of analysing liquids using laser spectroscopy. The
goal is to enable the rapid detection of liquids in the field.

Professor Alastair Smith, Chief Executive, Avacta, commented:

"We are delighted with the new contract for the development of a robust,
prototype device. Laser detection and diagnostic devices are a key part of
Avacta's portfolio of technologies and this contract with the MOD is an
important step for the company."

                                                               3 September 2007

Enquiries:

Avacta Group plc                          Tel: [phone]                 
                                                                             
Alastair Smith, Chief Executive                                              
                                                                             
Nexus Financial Ltd                       Tel: [phone]                 
                                                                             
Nicholas Nelson/Kathy Boate               [e-mail]   
                                                                             
W.H. Ireland Ltd                          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.