FIRST DAY OF TRADING ON AIM

Physiomics plc                                 

                          FIRST DAY OF TRADING ON AIM                          

Oxford, UK, December 20th, 2004, Physiomics plc (PYC, `Physiomics' or the
`Company'), a European systems biology simulation company, announces that
trading in its shares started today on the Alternative Investment Market (AIM)
following a Placing which raised £750,000 (before expenses) for the Company.

The net proceeds of the Placing will be used by Physiomics to develop and
market its technologies, such as SystemCellâ„¢, and to participate in proprietary
therapeutic development projects such as those that may arise from its
collaboration with Cronos Therapeutics Ltd.

Commenting on Physiomics' flotation, Dr Stephen Parker, Chairman, said:

'We are extremely pleased with the success of this fund raising. It will enable
Physiomics to invest aggressively in marketing and further developing this
important new generation of clinical response prediction services.'

Grant Thornton Corporate Finance is nominated adviser to Physiomics and HB-
corporate is acting as broker.

Physiomics' RIC is PYC

Placing Statistics:

Placing Price 2p

Number of Ordinary Shares in issue following Admission 230,025,599

Percentage of the Enlarged Share Capital placed 16.3 per cent

Market Capitalisation at the Placing Price £4.6 million

For further information please contact:

Physiomics plc Tel: [phone]
Dr Stephen Parker (Chairman) Tel: [phone]
Dr John Savin (CEO) Tel: [phone]

Grant Thornton Corporate Finance Tel: [phone]
Colin Aaronson

HB-corporate Tel: [phone] 
Edward Hutton
Luke Cairns

Northbank Communications Tel: [phone]
Emma Palmer
Fiona Brown

Background to Physiomics

Physiomics plc, founded in 2001, develops and sells services aimed at reducing
the high cost of drug development for pharmaceutical and biotechnology
companies by optimising the design of cancer clinical trials through the
application of computer-based simulations. Physiomics is also applying its
technologies to develop proprietary cancer therapy products for out-licensing
and, to this end, it has secured an option to license two innovative molecules.

Industry drug development costs on average over $800 million per product, with
approximately 80 to 90 per cent of all clinical drug candidates failing to
reach the market. Improving overall success rates by 10 per cent could save the
industry $242 million per drug. Physiomics believes that in silico simulation
technologies will quickly become the essential tools of the pharmaceutical
industry as a means of reducing this rate of attrition. The market for system
biology products and services is expected to grow to $785 million by 2008, an
annual compound growth rate of 66 per cent.

Physiomics has a strong team of Directors, with considerable experience of the
life sciences industry.

  * Chairman Dr Stephen Parker MBA was Finance Director at Oxford
    GlycoSciences, following a career in corporate finance.
   
  * CEO Dr John Savin MBA, who joined Physiomics in 2001, has worked as a life
    sciences equity analyst and in marketing for global healthcare companies
    such as Pharmacia and Amersham International.
   
  * Science Director Professor David Fell is a recognised expert in systems
    biology and runs a research team in this area at Oxford Brookes University.
    He is the author of approximately 85 scientific publications.
   
  * The Finance Director is David Collins ACA who has a broad range of
    experience with large corporations, including ICI and BASF, and is
    currently part-time Finance Director at Gieves & Hawkes.
   
  * Other Directors are Dr Paul Harper, who was CEO at Provensis and Cambridge
    Antibody Technology, and John Pool, who has extensive commercial and
    scientific experience in the life sciences sector.
   
Physiomics believes that systems biology simulations, combined with its
SystemCellâ„¢ technology to create virtual biological cell populations (where
each cell encapsulates its own copy of the simulation), should enable better
understanding of required drug dosages. Its mathematical models of key cellular
processes, such as cell growth and division, can, the Directors believe, be
used to define expensive pre-clinical and clinical research protocols to
produce 'right first time' studies.

The potential of Physiomics' approach has been validated through an ongoing
collaboration with Cyclacel to evaluate novel cancer therapies and in 2004 with
the announcement of a collaboration with Bayer Technology Services GmbH (BTS,
an affiliated company of Bayer AG) to supply services for clinical response
prediction. Under this agreement, the two companies are combining BTS' PK-Sim®
technology (which is used to evaluate how much administered drug reaches the
disease site) with Physiomics' own technology, including its SystemCell
software based on patented technology. Physiomics technology is used to
calculate how much drug is needed to maintain a therapeutic level.

The Directors believe that drug companies will use Physiomics' services to:

  * design clinical trials to maximise the chances of a successful outcome; or
   
  * troubleshoot problem trials, in order to identify the remedial action
    required and salvage drug development programmes; or
   
  * evaluate the benefits of buying in, or out-licensing, potential drug
    development projects.
   
Grant Thornton Corporate Finance is nominated adviser to Physiomics and
HB-corporate is acting as broker.