Research Update

Ardana PLC
31 October 2005

 ARDANA ANNOUNCES POSITIVE PHASE I RESULTS AND STARTS PHASE II TRIALS FOR NOVEL
                               TESTOSTERONE CREAM

Edinburgh, UK, 31 October 2005;  Ardana plc (LSE:ARA), the emerging
pharmaceutical company focused on improving human reproductive health, today
announces positive results in a second  Phase I study of its testosterone cream
which is being developed as a treatment for testosterone deficiency in male
hypogonadism.

The testosterone is being delivered using Ardana's proprietary delivery
technology and Ardana is expecting the launch of the product in the EU and US at
the end of 2007.

Ardana's testosterone cream is expected to have high patient acceptability. The
cream is fast drying, has low alcohol content, and only requires application to
a small area of the body.

Today's announcement relates to a second Phase I pilot study in healthy female
subjects to provide a control group equivalent to hypogonadal men with low
testosterone levels. The study not only provided proof of concept on the
delivery technology but also clear evidence that testosterone can be effectively
delivered through the skin to bring testosterone levels to within the normal
range observed in healthy males, using this cream. A Phase II dose-finding study
in hypogonadal men has just been initiated. Other therapies for male
hypogonadism include injectable formulations of testosterone, oral preparations,
transdermal patches, topical gels and sub-cutaneous implants.

Dr Maureen Lindsay, CEO Ardana, said:

'We are very encouraged by these results. This new formulation of testosterone
as a cream complements our current portfolio which includes Striant(TM) SR, a
buccal tablet testosterone replacement therapy, and will offer additional choice
for the patient. Also, based upon the knowledge we have gained on the
technology, Ardana can develop not only additional compounds to market ourselves
but also offer this to other companies and thereby generate licensing  income.'

In 2004, the testosterone replacement market in Europe and in the US was
estimated to be approximately $600 million. The US market is by far the most
attractive with a growth rate of 40% (cash) and sales of $537million, of which
$422 million were sales of testosterone gels (IMS Health).

For more information contact:

Ardana                                      Financial Dynamics
Maureen Lindsay                             (corporate/financial media relations)
Tel: + 44 (0) 131 226 8550                  Julia Phillips/Davina Langdale
                                            Tel: [phone]

                                            NB Public Relations
                                            (trade/technical media relations)
                                            Nicki Brimicombe
                                            Tel: + 44 (0)1883 732353

About Ardana

Ardana plc is a pharmaceutical company focused on the discovery, development and
marketing of innovative products to improve human reproductive health, a $23.8
billion market.

Since its foundation, Ardana has maintained a broad and balanced portfolio to
manage risk and actively pursues product and technology in-licensing and
out-licensing to maintain a robust pipeline.

Ardana's four lead products are summarised below:

  • Striant(TM) SR, a testosterone replacement therapy that has already been
    launched by Ardana through its own sales force in the UK as a treatment for
    men with hypogonadism and for which Ardana has marketing rights in Europe;
  • Teverelix LA, in development for three initial indications (prostate
    cancer, benign prostatic hyperplasia and endometriosis);
  • Testosterone cream, a trans dermal testosterone delivery system in
    development for the treatment of male hypogonadism, has now commenced Phase
    II trials;
  • Invicorp, an injectable combination drug treatment for erectile
    dysfunction, for which Ardana has marketing and manufacturing rights in
    Europe.

In addition, Ardana has a strong portfolio of follow-on products in development.

Ardana completed its IPO on the London Stock Exchange in March 2005 raising £21
million.

For further information please see www.ardana.co.uk






                      This information is provided by RNS
            The company news service from the London Stock Exchange