CAT Micromet Agreement

Cambridge Antibody Tech Group PLC
03 September 2003

03/CAT/22

FOR IMMEDIATE RELEASE

07.00 BST, 02.00 EST Wednesday 3 September 2003


For further information contact:

Cambridge Antibody Technology                      Weber Shandwick Square Mile (Europe)

Tel: [phone]                          Tel: [phone]
Peter Chambre, Chief Executive Officer             Kevin Smith
John Aston, Chief Financial Officer                Rachel Lankester
Rowena Gardner, Director of Corporate Communications

Micromet AG                                        BMC Communications/The Trout Group (USA)

Tel:  [phone]                         Tel: [phone]
Jens Hennecke (Business Development)               Brad Miles, ext 17 (media)
Evelyn Wolf (Press)                                Brandon Lewis, ext.15 (investors)
Ines-Regina Buth (Investors)


CAMBRIDGE ANTIBODY TECHNOLOGY ANNOUNCES PRODUCT LICENCE AGREEMENT WITH MICROMET AG


Micromet granted licence to commercialise therapeutic antibody product in cancer

Cambridge, UK Cambridge Antibody Technology Group plc (LSE: CAT;
NASDAQ: CATG) today announces the grant of a non-exclusive patent licence to
Micromet AG for the development and commercialisation of its proprietary human
therapeutic antibody candidate MT201. The antibody, developed using phage
display technologies controlled by CAT, is specific for the epithelial tumour
target EpCAM and has the potential to address a broad range of cancer
indications. MT201 is the subject of a co-development agreement with Novuspharma
SpA to jointly develop the candidate through a Phase II programme scheduled to
commence shortly.


Under the terms of the agreement with CAT, Micromet receives a worldwide licence
in respect to all CAT's antibody phage display technology patents, both pending
and granted, to develop antibody-based products targeting the EpCAM antigen. In
return, CAT will receive an upfront licence fee from Micromet as well as
milestone and royalty payments on human antibody-based products developed
against the EpCAM target by Micromet and its partners.


Peter Chambre, CAT's Chief Executive Officer, commented; "We are very encouraged
by the commitment and progress made by Micromet in therapeutic antibody
development and are pleased that the company views a licence to CAT's antibody
phage display patents as fundamental to its investment in this area. CAT's 
patent licensing strategy supports the growing enthusiasm for human
antibodies as an extremely important class of drug addressing major areas of
unmet medical need."


Christian Itin, Chief Business Officer of Micromet, commented; "CAT's
antibody phage display technology was critical to the generation of
MT201, a fully human IgG targeting EpCAM. The additional unique binding
properties of MT201 came about as a result of the innovative approaches to
display technology applied by Micromet researchers. We are looking forward with
our partner Novuspharma to entering the next phase of the clinical development
of MT201."


-ENDS-

Cambridge Antibody Technology (CAT):

• CAT is a UK-based biotechnology company using its proprietary
technologies and capabilities in human monoclonal antibodies for drug discovery
and drug development. Based near Cambridge, England, CAT currently employs
around 290 people.

• CAT is a leader in the discovery and development of human therapeutic
antibodies and has an advanced proprietary platform technology for rapidly
isolating human monoclonal antibodies using phage display and ribosome display
systems. CAT has extensive phage antibody libraries, currently incorporating
more than 100 billion distinct antibodies. These libraries form the basis for
the Company's strategy to develop a portfolio of antibody-based drugs.

• HUMIRATM, the leading CAT-derived antibody, isolated and optimised in
collaboration with Abbott has been approved by the US Food and Drug
Administration for marketing in the US as a treatment for rheumatoid arthritis.
Approval in Europe is expected by Abbott in mid-2003.

• Eight further CAT-derived human therapeutic antibodies are at various
stages of clinical trials. There are five candidate therapeutic antibodies in
pre-clinical development.

• CAT has alliances with a number of pharmaceutical and biotechnology
companies to discover, develop and commercialise human monoclonal antibody-based
products. CAT has co-development programmes with Amgen, Amrad, Elan and Genzyme.

• CAT has also licensed its proprietary technologies to several companies.
CAT's licensees include: Abbott, Amgen, Chugai,  Human Genome Sciences,
Merck & Co, Pfizer and Wyeth Research.

• CAT is listed on the London Stock Exchange and on NASDAQ since June 2001.
CAT raised £41m in its IPO in March 1997 and £93m in a secondary offering in
March 2000.

Application of the Safe Harbor of the Private Securities Litigation Reform Act
of 1995: This press release contains statements about Cambridge Antibody
Technology Group plc ("CAT") that are forward looking statements. All statements
other than statements of historical facts included in this press release may be
forward looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934. These forward looking statements are based on numerous
assumptions regarding CAT's present and future business strategies and
the environment in which CAT will operate in the future. Certain factors that
could cause CAT's actual results, performance or achievements to differ
materially from those in the forward looking statements include: market
conditions, CAT's ability to enter into and maintain collaborative
arrangements, success of product candidates in clinical trials, regulatory
developments and competition.

Micromet AG:

• Micromet AG, a private Munich-based biotechnology company, puts novel
concepts in immunotherapy to work. Using proprietary technologies, the Company
is building a strong pipeline of innovative drug candidates for the treatment of
cancer, inflammation and autoimmune disease. Two candidates are currently in
clinical trials.

• The Company has established a powerful drug development platform based on
its BiTE(TM) technology ("Bispecific T cell engagers"), a unique drug format 
that leverages the outstanding cytotoxic potential of T cells, the most powerful 
'killer cells' of the human immune system. In addition Micromet is exploiting 
the potential of SCAs (single-chain antibodies) for the development of novel 
drug formats under a multiyear strategic collaboration with Enzon Inc.

• Micromet has integrated infrastructure and expertise in all disciplines
of drug design and development. For further information, please visit the
company's web site at www.micromet.de.

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