Interim Report

For immediate release: 10am - 28th September 2007 VALIRX PLC ("ValiRx" or the "Company") Interim Results for the Six Months ended 30 June 2007 ValiRx Plc (AIM: VAL), the cancer therapeutics company, today announces its unaudited interim results for the six month period ended 30 June 2007. CHAIRMAN'S REPORT For the Period Ended 30 June 2007 I am pleased to report that during the six month period ended 30 June 2007 and the subsequent period to date, the business has continued to develop steadily across its three chosen areas of focus. Science We believe that excellent progress has been made in our core science focus where we look to acquire and develop new and innovative R&D programmes in the epigenomic and diagnostic fields. In April, Cronos Therapeutics Limited ("Cronos") signed an agreement with the University of Surrey's Postgraduate Medical School to co-develop prostate and bladder cancer diagnostics based on Cronos' proprietary HyperGenomics technology. At the same time, Cronos and ATDBio Ltd completed their initial experiments involving GeneICE (the gene-silencing technology) with confirmation that the GeneICE drug binds to its predicted genetic target under model physiological conditions. Post the period end, the efficacy of the GeneICE compound to arrest the development and terminate the existence of cancer cells received further support through the positive findings from Cancer Research Technology ("CRT"), as announced to the market earlier this month. During the period, we have also progressed in the protection of our portfolio of intellectual property ("IP") in the world's major life science markets. In April, we received patent approval from the United States Patent and Trademark Office covering all 50 US states for GeneICE; then in August, we received patent approval by the European Patent Office covering 23 European states. To further support the commercialisation of our portfolio of gene regulation and epigenetic diagnostic technologies, the Company has signed two strategic alliances with US companies. The first agreement with Bridgetech, a company focused on healthcare products and services in the US & Asia, governs cooperative efforts in creating and exploiting market technology transfer initiatives between Europe and China. The second is with Clarity Imaging International, a company that offers emerging technologies to the medical community and where both parties will cooperate and agree terms to exploit technology transfer initiatives between the US and Europe in the future. Through these agreements, we aim to bring our therapeutic and diagnostic technologies to the Asian and US markets. Disease Focus (Oncology) In February 2007, the Company announced it had put in place an agreement with Physiomics Plc, the European systems biology simulation company, to use its In Silico simulation of cellular processes to reduce the development time and costs associated in identifying new therapeutic compounds for the treatment of cancers. The primary concentration of the initial program is to investigate the process of Apoptosis (the natural process of programmed cell death and turnover), a process that is frequently disrupted in cancers. Diagnostics Product & Development The main development to report happened post the period end. In July, the Company announced the signing of a Memorandum of Understanding with BIO.be, a Belgian company of the Institute of Pathology and Genetics ("IPG"), to establish a joint-venture focused on the development and commercialisation of products in the epigenomics sector. The newly created oncology diagnostics company, ValiBIO S.A. ("ValiBIO"), will be based in Gossellies, Belgium and ValiRx will invest cash and equity in return for 77% of the equity in ValiBIO. With the additional funds that we expect to be made available from government grants and loans, we aim to build a team and laboratory facilities to utilise the scientific and material resources at IPG and patient materials from European cancer biobanks, to develop HyperGenomics-based cancer diagnostic products. Meanwhile Morphogenesis, where ValiRx holds an 8.517% stake, continues to progress the development of its core products: the ImmuneFx cancer vaccine, the Stem Cell Proliferation Factor, and the Polymer Cell Separation System. With regards to its most developed product, ImmuneFx, I can confirm preclinical trials have been completed and investigations are now ongoing to find the best venue for a Phase I human trial. Financial Overview During the period under the review, the administrative charges have been in line with budget, their increase primarily relating to the creation of ValiBIO. The Company has also recently announced the completion of a placing to raise an additional £300,000 for working capital purposes. Strategic Summary In summary, I am pleased with the progress the Company has made in the period. This has been underpinned by the excellent results received post the period end from CRT on GeneICE. This progress on our science front, when combined with the strengthening of our IP and the widening of our strategic agreements and collaborations, has, in the opinion of the board, created a sound foundation on which we can continue to build. Tony Moore Chairman 28th September 2007 Valirx Plc Income statement for the six months ended 30 June 2007 Six months Three Nine ended months months ended Notes 30-Jun 30-Jun 31-Dec 2007 2006 2006 (unaudited) (unaudited) (audited) £ £ £ Revenue 5,741 - 9,577 Administrative expenses -426,385 -23,197 -273,292 Operating loss -420,644 -23,197 -263,715 Loss on deemed disposal of - - -60,133 shares in subsidiary Loss before interest -420,644 -23,197 -323,848 Other interest receivable and 9,583 - 7,828 similar income Interest payable and similar -12 - -49 charges Loss before taxation -411,073 -23,197 -316,069 Taxation 3 - - - Loss after taxation -411,073 -23,197 -316,069 Minority interest 60,704 - 29,112 Loss for the period -350,369 -23,197 -286,957 Loss per share - basic and 4 (0.04)p (0.05)p (0.11)p diluted Statement of changes in shareholders' equity for the six months ended 30 June 2007 Six months Three Nine ended months months ended 30-Jun 30-Jun 31-Dec 2007 2006 2006 (unaudited) (unaudited) (audited) £ £ £ Opening shareholders' equity 2,655,305 161,197 161,197 Issue of shares 2,800 - 4,381,054 Other movements -28,584 - -1,599,989 Loss for the period -350,369 -23,197 -286,957 Closing shareholders' equity 2,279,152 138,000 2,655,305 Balance sheet as at 30 June 2007 As at 30 June 31-Dec 2007 2006 2006 (unaudited) (unaudited) (audited) £ £ £ ASSETS Non current assets Intangible assets 576,187 63,650 488,027 Property, plant and 4,233 1,100 4,833 equipment Investments 1,333,770 - 1,333,770 1,914,190 64,750 1,826,630 Current assets Trade and other 79,108 75,257 154,479 receivables Cash and cash equivalents 413,433 13,051 810,639 492,541 88,308 965,118 LIABILITIES Current liabilities Trade and other payables -157,262 -15,058 -105,422 Net current assets 335,279 73,250 859,696 Total assets less current 2,249,469 138,000 2,686,326 liabilities SHAREHOLDERS'' EQUITY Called up share capital 11,155,855 5,474,902 11,153,055 Share premium 6,951,186 10,279,042 6,979,770 Merger reserve 637,500 - 637,500 Reverse acquisition -15,760,591 -15,525,275 -15,760,591 Retained earnings -704,798 -90,669 -354,429 Total shareholders' 2,279,152 138,000 2,655,305 equity Minority interest -29,683 - 31,021 2,249,469 138,000 2,686,326 Cash flow statement for the six months ended 30 June 2007 Six months Three Nine ended months months ended 30-Jun 30-Jun 31-Dec 2007 2006 2006 (unaudited) (unaudited) (audited) £ £ £ Operating activities Operating loss -420,644 -23,197 -263,715 Depreciation of tangible assets 600 18 1,310 Amortisation of intangible assets 2,400 1,025 3,211 Decrease/(increase) in debtors 75,371 -37 -176,191 Increase in creditors within one year 51,840 6,286 381,840 Cash outflows from operating -290,433 -15,905 -53,545 activities Investing activities Interest received 9,583 - 7,828 Interest paid -12 - -49 Payments to acquire intangible assets -90,560 -4,879 -7,868 Payments to acquire tangible assets - - -5,025 Payments to acquire investments - - -190,770 Purchase of subsidiary undertaking, - - 1,290,767 net of cash acquired Net cash generated from (used in) -80,989 -4,879 1,094,883 investing activities Financing activities Issue of ordinary share capital 2,800 - 127,500 Cost of share issue -28,584 - -392,034 Net cash used in financing activities -25,784 - -264,534 Net (decrease)/increase in cash and -397,206 -20,784 776,804 cash equivalents Cash and cash equivalents at start of 810,639 33,835 33,835 period Cash and cash equivalents at end of 413,433 13,051 810,639 period Notes to the interim accounts 1. Basis of preparation The condensed consolidated interim financial statements for the six months ended 30 June 2007 have been prepared under applicable International Financial Reporting Standards adopted by the European Union ("IFRS"). The interim financial information for the six months ended 30 June 2007 have been prepared on the basis of the accounting policies set out on pages 13 to 17 of the 2006 Annual Report and Accounts. The financial information included in this document is unaudited and does not comprise statutory accounts within the meaning of Section 240 of the Companies Act 1985. The comparative figures for the period ended 31 December 2006, are extracted from the statutory financial statements for that period which have been filed with the Registrars of Companies and on which the auditor gave an unqualified report, without any statement under Section 237(2) or (3) of the Companies Act 1985. 2. Comparative figures for the three months ended 30 June 2006 On 3 October 2006, Valirx Bioinnovations Limited ('Bioinnovations') acquired 60.28% of the issued share capital of Cronos Therapeutics Limited ('Cronos') in exchange for shares in Bioinnovations. Concurrently, the Company, then called Azure Holdings plc ('Azure'), acquired the entire issued share capital of Bioinnovations in a share for share transaction. As a result of these transactions, the former shareholders of Cronos became the majority shareholders in Azure. Accordingly the substance of the transaction was that Cronos acquired Azure in a reverse acquisition. As part of the business combination, Azure changed its name to Valirx Plc ('Valirx'). Under IFRS 3 'Business Combinations', the acquisition of Cronos has been accounted for as a reverse acquisition. As a consequence of applying reverse acquisition accounting, the results for the period ended 31 December 2006 comprise those of Cronos plus those of Valirx and Bioinnovations from 3 October 2006. The comparative figures for the period ended 30 June 2006 are those of Cronos only for that period. The consolidated balance sheet comprises the combined balances of Cronos, Valirx and Bioinnovations at 31 December 2006. The comparative balance sheet is that of Cronos at 30 June 2006. 3. Taxation On the basis of these financial statements there is no tax charge for the period. 4. Earnings per ordinary share The earnings and number of shares used in the calculation of earnings per ordinary share are set out below. Six months Three months Nine months ended ended 30-Jun 30-Jun 31-Dec 2007 2006 2006 (unaudited) (unaudited) (audited) Basic: Loss for the financial 350,369 23,197 286,957 period Weighted average number 885,891,389 48,317,569 264,684,539 of shares Loss per share 0.04p 0.05p 0.11p There was no dilutive effect from the share options outstanding during the period. 5. Dividend The directors do not propose to declare a dividend in respect of the period. 6. Additional information Copies of this report may be obtained from the Company's registered office, 24 Greville Street, London EC1N 8SS. Our website address is www.valirx.com. From this site you may access our financial reports and presentations, recent press releases and details about the company and its operations. ---ENDS--- Information on ValiRx plc ValiRx is a biopharmaceutical development company that is building a portfolio of complementary cancer-related therapeutic and diagnostic technologies. It currently holds stakes in Cronos and Morphogenesis Inc: * Cronos holds licenses to two innovative and potentially market changing technologies, GeneICE and HyperGenomics; * Morphogenesis Inc. is developing a portfolio of cell therapy products for the treatment of chronic disorders. Its most advanced product, being ImmuneFx™ for which it recently received a patent from the US patent office. ValiRx is headquartered in London, England. Please visit www.valirx.com for further information. Contact Details: ValiRx Plc WH Ireland GTH Communications Dr Satu Vainikka David Youngman Toby Hall / Jade Mamarbachi +44 (0) 203 008 4416 +44 (0) 161 832 +44 (0) 20 7153 8035 2174

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