Microgen UK Tax Benefit

Microgen PLC
3 December 2001


For Immediate Release                          3 December 2001


                                 MICROGEN PLC


Tax benefit of £1.5 million


The Group's main trading subsidiary, Microgen UK Limited, has received
confirmation from the Inland Revenue of settlement of its Corporation Tax
liability for the period ended 31 December 1998.  The settlement will result
in a prior years' Corporation Tax credit of approximately £1.5 million being
recognised in the Group profit and loss account for the period ending 31
December 2001 equating to earnings per share of approximately 2.9 pence.  A
cash repayment of £1.4 million including interest has been received from the
Inland Revenue.


The principal issues that gave rise to the repayment are:

(i)                  the agreement with the Inland Revenue of March 1982
valuations of shares in Microgen UK Limited's overseas subsidiaries, Capella
AB and Eurocom Depora, disposed of in October 1998 in the first phase of the
strategic restructuring of the Group; and,

(ii)                a provision for obligations under surplus property leases
made in 1998 that is now an allowable deduction for tax purposes.


There are consequent amendments to Microgen UK Limited Corporation Tax
computations for 1999 and 2000 relating to movements on the surplus property
provision and these amendments are incorporated into the prior years' tax
credit of £1.5 million stated above.

Contact :

Mike Phillips, Group Finance Director                      01753-847123

Steve Liebmann, Buchanan Communications                    0207-466-5000