First day of dealings on AIM

Allergy Therapeutics Ltd
11 October 2004



For Immediate Release                                            11 October 2004

    Not for release or distribution in the United States of America, Canada,
           Australia, the Republic of Ireland, South Africa or Japan

                            Allergy Therapeutics plc

       First Day of Dealing on the Alternative Investment Market ("AIM")

Allergy Therapeutics plc ("Allergy Therapeutics" or "the Company") (LSE: AGY),
the specialty pharmaceuticals company focused on allergy vaccines, is pleased to
announce its flotation on the Alternative Investment Market ("AIM") today.

The Company has raised £16 million via a placing to institutional investors at
the price of 73 pence per share, valuing the company at £46 million on
admission. KBC Peel Hunt is acting as the Company's nominated adviser and
broker.

Key points

   • Allergy Therapeutics has a manufacturing, sales & marketing and product
     development infrastructure supporting a portfolio of marketed products and 
     a development pipeline of innovative patented vaccines, focused on 
     achieving market approvals from the major regulatory agencies world-wide.


   • The treatment of allergies is one of the largest therapeutic areas with
     estimated related sales of over US$12 billion worldwide. In the US alone, 
     it is estimated that between 40 and 60 million people suffer from 
     allergies. Allergy treatment is currently focused on the management of 
     symptoms, through the use of anti-histamines and steroids, providing only 
     temporary relief.


   • Allergy vaccination is currently the only treatment that can cure the
     underlying disease process.


   • The directors believe that capturing maximum market share with allergy
     vaccines will come by improving the characteristics of the allergy
     vaccination products and achieving registrations in major markets. The 
     Group has certain exclusive rights world-wide to MPL(R), a novel vaccine 
     adjuvant. Allergy Therapeutics' short course, fast acting, well-tolerated 
     MPL(R)-based vaccines are designed, once registered, to achieve this market 
     expansion.


   • The directors believe that the Group's subcutaneous development
     products, owing to the extensive clinical experience already gained through
     sales on a named-patient basis, present low development risk and that an
     efficacious, convenient sublingual allergy vaccine would have the potential
     to be a first line treatment for allergic disease.

Commenting on the flotation, Keith Carter, Chief Executive of Allergy
Therapeutics, said:

"We are delighted to be joining AIM today. The money we have raised will enable
us to accelerate the development and commercialisation of all our new products.
Allergy vaccination is the only curative treatment and by making the products
more accessible and patient-friendly we aim to offer allergy sufferers a better
alternative to traditional symptomatic medication. We look forward to reporting
our progress to the market over the coming months."

For further information, please contact:

Allergy Therapeutics                     01903 844720
Keith Carter, Chief Executive

KBC Peel Hunt                            020 7418 8900
Capel Irwin / David Anderson

Grandfield                               020 7417 4170
Samantha Robbins / Charles Cook

Details of the placing

Placing price                                                 73 pence
Number of Ordinary shares being placed                        21,917,808
Number of Ordinary shares in issue at the time of admission   62,950,632
Market capitalisation at placing price                        £46 million
Net proceeds of the placing receivable by the Company         £15 million

Note to picture editors:

Photographs are available from Grandfield. Please contact Samantha Robbins on
020 7417 4181 or at [e-mail].




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