Trading Statement

Avacta Group plc

Pre-Close Trading Update

Achievement of milestones for laser analysis technologies

Avacta Group plc ("Avacta" or the "Company"), which develops detection and
analysis technology aimed at the pharmaceutical, healthcare, security and
industrial sectors, announces a pre-close trading update following the year
ended 31 July 2008. The preliminary results are expected to be announced during
October and the directors look forward to reporting on a successful period of
revenue growth, product development and industry collaboration.

The Company's product portfolio, built around the core technologies of laser
analysis and automated fluid handling, continues to move closer to market and
on target with reported expectations. Last month the Company reported
continuing success with trials of its stand-off chemical detection device in
collaboration with the MOD; the completion of a prototype device for trace gas
analysis in diagnostics and industrial applications; and the recent
announcement of a product development partnership with one of the market
leaders in toxic and flammable gas detection. In the past few weeks further
milestones have been reached on two other lead products, putting
commercialisation within the Company's sights:

Avacta's flagship product, Optim, a high end benchtop instrument which performs
biophysical analysis on minute amounts of biological and biopharmaceutical
samples, completed its alpha prototype stage, and in-house demonstrations to a
number of early stage adopters are planned in the near future. The projected
launch in late 2008/early 2009 remains on track. The Directors believe that
once available for purchase, Optim will provide customers with a step change in
their ability to characterise drug compounds at a very early stage of
development thereby improving lead compound selection and reducing the risk of
later stage failures. The directors are encouraged by customer feedback which
leads them to believe that the product will be well received by its target
market.

The Company completed development of a prototype technology designed to improve
the sensitivity of Raman spectroscopy, a commonly used chemical identification
and analysis technique with a wide range of potential applications in almost
every scientific field. Commercialisation of the technique has been limited
historically because of problems with weak signals and interference from
background noise. Avacta has countered these problems with its new noise
suppression technology which significantly improves the quality of the data
available and the Directors believe that this will open new markets for Raman
spectroscopy. Avacta is in preliminary discussions with several third party
Raman system providers regarding potential licence deals for the technology.

The contract services division continues to thrive profitably following further
growth in the number and range of customers internationally, which are keen to
take advantage of the unique range of biophysical characterisation services. A
range of strategic alliances entered into over the period strengthens the
Company's offering by enabling it to provide a greater range and depth of
services to its customers.

                                                                 21 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.