Re Proposed Disposal

Ardana PLC 19 February 2008 Ardana plc PROPOSED SALE OR MERGER OF THE COMPANY Edinburgh, UK, February 19, 2008: Ardana plc (LSE:ARA), the emerging pharmaceutical company focused on the discovery, development and marketing of innovative products to improve human reproductive health, today announces that it is seeking to sell or merge the Company in order that the value of its pipeline can be maximised. Piper Jaffray Ltd. has been appointed to advise the Company in connection with this process. Separately Ardana has today issued its Interim Management Statement for the period 1 October 2007 to 31 December 2007 which also details a restructuring programme to reduce the Company's cash commitments (see separate press release). Proposed Sale or Merger of the Company and associated restructuring In December 2007 the Company announced the results of a strategic review as a result of which the Board has directed the Company's efforts and resources on the high-value, nearer term opportunities in Ardana's pipeline, such as Teverelix LA and Testosterone Cream. Ardana has reported positive clinical results in both these product candidates during the period and believes that they both have substantial commercial potential. Partnering discussions continue on the co-development of Teverelix LA and for the co-development and commercialisation of Testosterone Cream in the USA. Interest has also been expressed for other assets within the Company's portfolio of clinical products. Following the strategic review announcement, Ardana has had consultations with its major shareholders to explore the options available to the Company to realise increased value for its pipeline. As a result of these discussions and the prevailing market conditions, the Board has concluded that shareholder value is more likely to be maximised through seeking a sale or merger partner which will be better placed to fund the Company's extensive clinical development portfolio. Ardana also announces a restructuring of the business to reduce the Company's cash commitments and enhance the Company's position in future discussions with potential sale or merger partners. The Company operates a 'virtual' business model which has resulted in a low cost base such that most activity and cost is borne by the research and clinical development programmes. The specific impact of the restructuring on the Company's clinical programme and the Company as a whole are summarised as follows: • Teverelix LA: the current Phase II programmes in prostate cancer and BPH have now been completed and positive preliminary results were announced last year; further planned development programmes will not be initiated; and • Testosterone Cream: a Phase III study in the USA commenced in 2007 and enrolment is now complete. In addition, differentiation studies, from which positive preliminary results were announced at the end of last year, will be completed. Further activity is on hold. All other development, manufacturing, commercial and overhead activities will be scaled back or halted bearing in mind the Company's contractual obligations, reducing both cash commitments and headcount. Enquiries: Ardana plc Tel: +44 (0)131 226 8550 Dr Huw Jones, Chief Executive Officer Graham Lee, Chief Financial Officer Financial Dynamics Tel: +44 (0)20 7831 3113 Julia Phillips/Emma Thompson Piper Jaffray Ltd. Tel: +44 (0)20 3142 8700 Neil Mackison/James Steel Further information on Ardana can be found on the Company's website: www.ardana.co.uk Piper Jaffray, which is authorised and regulated by the Financial Services Authority, is acting exclusively for Ardana and for no-one else in connection with the matters referred to in this announcement and will not be responsible to anyone other than Ardana for providing the protections afforded to customers of Piper Jaffray nor for giving advice in relation to the matters referred to in this announcement. The City Code on Takeovers and Mergers (the 'City Code') 1) Rule 2.10 of the City Code In accordance with Rule 2.10 of the City Code, the Company confirms that it has 65,511,729 ordinary shares of 1 pence each in issue under the ISIN code GB00B065JS90. 2) Dealing Disclosure Requirements Under the provisions of Rule 8.3 of the City Code, if any person is, or becomes, 'interested' (directly or indirectly) in 1% or more of any class of 'relevant securities' of Ardana plc, all 'dealings' in any 'relevant securities' of that company (including by means of an option in respect of, or a derivative referenced to, any such 'relevant securities') must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the 'offer period' otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an 'interest' in 'relevant securities' of Ardana plc, they will be deemed to be a single person for the purpose of Rule 8.3. Under the provisions of Rule 8.1 of the City Code, all 'dealings' in 'relevant securities' of Ardana plc by Ardana plc, or by any of their respective 'associates', must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction. A disclosure table, giving details of the companies in whose 'relevant securities' 'dealings' should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at www.thetakeoverpanel.org.uk. 'Interests in securities' arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an 'interest' by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities. Terms in quotation marks are defined in the City Code, which can also be found on the Takeover Panel's website. If you are in any doubt as to whether or not you are required to disclose a 'dealing' under Rule 8, you should consult the Takeover Panel.' Ardana plc (LSE: ARA) is an emerging pharmaceutical company focused on the discovery, development and marketing of innovative products to improve human reproductive health, a $25.5 billion market. Ardana's lead products are summarised below: • Teverelix LA, in development for three initial indications (prostate cancer, benign prostatic hyperplasia and endometriosis); • ARD-0705 a growth hormone secretagogue in Phase III for the diagnosis of growth hormone deficiency in adults; • Testosterone Cream, a transdermal testosterone delivery system in development for the treatment of male hypogonadism, in Phase III trials; • Emselex(R), a once a day treatment for the symptoms of overactive bladder syndrome, which Ardana has exclusive UK marketing and promotion rights and is being distributed in collaboration with Novartis UK Limited; • Striant(TM) SR, a testosterone replacement therapy that has been launched by Ardana through its own sales force in the UK and through marketing partners in certain European countries, as a treatment for men with confirmed hypogonadism; and • Invicorp(TM), an injectable combination drug treatment for erectile dysfunction, for which Ardana has marketing and manufacturing rights in Europe and has been launched in Denmark. For further information please see www.ardana.co.uk This information is provided by RNS The company news service from the London Stock Exchange
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