Re Agreement

Physiomics and Bayer Technology Services sign UK distribution agreement for  
                                    PK-Sim®                                    

Oxford, UK and Leverkusen, Germany 23rd June 2005 Physiomics (AIM: PYC) and
Bayer Technology Services GmbH (BTS) have signed an agreement under which BTS
has appointed Physiomics as a distributor of its PK-Sim® pharmacokinetic
modelling products and services for a renewable five-year period. The
agreement, which covers all therapeutic areas, should also enable increased
sales of the Clinical Response Prediction system, which combines PK-Sim with
Physiomics' pharmacodynamic SystemCell® technology.

Physiomics and BTS believe that advanced whole body simulations can optimise
the transition from preclinical to clinical development and help in the
optimisation of dose scheduling, one of the major problems in clinical trial
design. Studies1 have shown that improving the drug development success rate by
10% overall could save $242m per drug. Under a separate global deal announced
in September 2004, Physiomics and Bayer collaborate on Clinical Response
Prediction in the area of cancer.

Physiomics will initially develop the UK market for PK-Sim and act as the
primary customer interface. Financial terms of the agreement were not
disclosed.

Dr Stephen Parker, Chairman of Physiomics, commented: 'We are delighted to
further our relationship with Bayer. This is an important achievement for the
Company as it extends and diversifies our product base and range of business
development opportunities. The new distributor agreement will enable us to work
on all therapeutic areas with a very sophisticated service and product
offering, and should have a positive impact on Clinical Response Prediction
sales.'

1 Tufts Center Impact Report 2002

                                    --ENDS-                                    

For further information please contact:

 

Physiomics plc

Dr Stephen Parker (Chairman) Tel: [phone]

Dr John Savin (CEO) Tel: [phone]

 

Northbank Communications Tel: [phone]

Emma Palmer

Fiona Brown

Rowan Minnion

Notes to Editors

Physiomics plc

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.
For more information go to www.physiomics-plc.com

SystemCell is a registered trademark of Physiomics plc

Bayer Technology Services GmbH

Bayer Technology Services GmbH is the center for technological competence of
the Bayer Group worldwide. The Bayer company employs more than 2,100 experts
worldwide at its headquarters in Leverkusen and other German locations, as well
as in regional offices in Baytown (Texas, USA), Antwerp (Belgium), Mexico City
(Mexico) and Shanghai (Peoples Republic of China). Bayer Technology Services
posted sales of EUR 520 million in 2004, including utilities procurement for
all Bayer sites in Germany (first six month only). In addition to
fully-integrated solutions along the life cycle of pharmaceutical and chemical
plants - from development through engineering and construction to process
optimization, Bayer Technology Services offers a broad range of products and
services for all stages of diagnostics and drug research and development.
Examples include nano-phosphors, the pharmacokinetic simulation software PK-Sim
® as well as sophisticated data mining and modeling techniques. Additional
information about Bayer Technology Services is available at 
www.bayertechnology.com.

PK-Sim is a registered trademark of Bayer Technology Services GmbH



                                Physiomics plc                                 

                Registered in England and Wales Number 4225086                 

Registered Office: The Magdalen Centre, Oxford Science Park, Oxford OX4 4GA, UK