Morphogenesis Update

For immediate release 0700hrs 23rd January 2008

                                  VALIRX PLC                                   

                          ("ValiRx" or the "Company")                          

                             Morphogenesis Update                              

ValiRx (AIM: VAL), the cancer therapeutics company, today provides an update on
Morphogenesis Inc ("Morphogenesis"), the privately-held US biotechnology
company in which the Company holds an 8.2% stake.

ValiRx is pleased to report that Morphogenesis is planning to accelerate the
production of its US-patented cancer vaccine, ImmuneFxâ„¢, for pet animals. The
vaccine is currently in late stage pre-clinical trials and is expected to be
ready for clinical Phase I filing within a year. The market for pet cancer
vaccines in both Europe and the US is potentially significant with
Morphogenesis estimating that the canine lymphosarcoma market in the US alone
would be in excess of $200 million a year.

In addition, ValiRx is able to report that the Morphogenesis advanced cell
separator prototype, Polymer-Antibody Cell Separation ("PACS") for the
separation and purification of rare cells including stem cells and circulating
tumour cells, has progressed to the testing and validation stage. An important
feature of this technology is the cell separation method. Unlike existing
devices on the market, the patented antibodies in PACS are coated with a
polymer that has no affinity for rare cells; this is to optimise their
separation from unwanted cells, making their collection a more efficient
procedure. With particular relevance to the oncology and tissue and organ
repair markets, PACS has a role in diagnostic, therapeutic and research
applications. The cell therapy market is forecast to reach US$30 billion by
2010.

Dr Satu Vainikka, CEO of ValiRx and non-executive director of Morphogenesis,
said:

"Morphogenesis has made significant progress over the last year in two of its
key technology areas with both potentially leading to early revenues for the
business. We look forward to updating the market on these developments as they
occur."

Dr. Vainikka was re-appointed to the Board of Morphogenesis following its AGM
on the 14 of January 2008.

                                   --Ends--                                    

About ImmuneFxâ„¢

The ImmuneFxâ„¢ cancer vaccine capitalises on the ability of bacterial antigens
to evoke a strong immune response and the ability of the patient's immune
system to respond to the presence of the bacterial antigens by directing the
force of the immune system specifically to the tumour. Typically, cancer cells
do not normally evoke an immune response that is effective in preventing the
formation of tumours.

About Morphogenesis

Founded in 1996, Morphogenesis is developing a portfolio of cell therapy
products for the treatment of chronic disorders. Its most advanced product,
ImmuneFx, has the potential to provide cancer vaccine solutions that target
tumours in both humans and pets.

ValiRx holds 1,806,700 ordinary shares and 250,000 warrants in Morphogenesis
Inc.

About ValiRx plc

ValiRx is a biopharmaceutical development company that is building a portfolio
of complementary cancer-related therapeutic and diagnostic technologies. It
currently holds a worldwide exclusive license for Nucleosomics, the early stage
oncology diagnostics technology, and has majority stakes in Cronos Therapeutics
Ltd ("Cronos") and ValiBIO SA:

  * Cronos holds worldwide exclusive licenses to two innovative and potentially
    market changing technologies, GeneICE and HyperGenomicsTM, and is
    developing further novel cancer therapies;
   
  * ValiBIO SA is a Belgium joint venture between ValiRx and BIO.be focusing on
    the development and commercialisation of products in the epigenomics
    sector, the first products to be put into development being HyperGenomics
    and Nucleosomics. ValiRx has a 77% majority holding in the company.
   
ValiRx is headquartered in London, England. Further information can be found at
www.valirx.com

Contact Details:

     ValiRx Plc          WH Ireland         GTH Communications    
                                                                  
  Dr Satu Vainikka     David Youngman        Toby Hall / Jade     
                                                Mamarbachi        
                                                                  
[phone]   [phone]     [phone]   
                            2174