Final Results - Year Ended 30 September 1999

Cambridge Antibody Tech Group PLC
29 November 1999


For further information contact:
Cambridge Antibody Technology                Tel: [phone]
David Chiswell, Chief Executive Officer
John Aston, Finance Director
Rowena Gardner, Communications Manager

HCC.De Facto                                 Tel: [phone]
City/Financial, Rebecca Hennessey
Trade/Scientific, Nikul Odedra


CAMBRIDGE ANTIBODY TECHNOLOGY GROUP plc
PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 1999


Highlights
Positive data from phase II clinical trials in D2E7, a human anti-TNFa
monoclonal antibody for rheumatoid arthritis isolated and optimised by CAT in
collaboration with BASF Pharma. BASF Pharma is planning to initiate phase III
clinical trials shortly. 
Good clinical progress for CAT-152, a human anti-TGFb2 monoclonal antibody for
use to reduce scarring following glaucoma surgery, now into phase II clinical
trials.
J695, a human monoclonal antibody against Interleukin-12, for treatment of
autoimmune and inflammatory disorders, developed by CAT in collaboration with
BASF Pharma and Genetics Institute, entered phase I clinical trials.
CAT's anti-TGFb1 human monoclonal antibody, CAT-192, being developed for
scarring/fibrotic conditions, entered phase I clinical trials early in
November 1999.
Wide-ranging strategic alliance signed with Wyeth-Ayerst.
Significant collaborative agreement with Human Genome Sciences that uses CAT's
high throughput antibody technologies to develop novel antibody therapeutics.
Enhancement of patent position, with McCafferty and Griffiths patents granted
in the US, settlement of Winter II patent interference in the US, and Winter
II patent upheld with one claim amendment in the European opposition hearing.

Professor Peter Garland, CAT's Chairman, said 'I am pleased to report that
this year there has again been significant progress. There are now independent
clinical trial programmes of four CAT derived products underway and further
important collaborations have been secured with major pharmaceutical and
genomics companies.' 



CAMBRIDGE ANTIBODY TECHNOLOGY GROUP plc
PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 1999

Statement by the Chairman

CAT applies its core technologies in two main ways: to create human antibodies
as novel therapeutic agents, and to exploit the properties of its antibody
libraries in the discovery and validation of new therapeutic targets.  I am
pleased to report that this year there has again been significant progress. 
There are now independent clinical trial programmes of four CAT derived
products underway.  Further important collaborations have been secured with
major pharmaceutical and genomics companies.  Technology development has
continued and important patents have issued. 

The full potential of monoclonal antibodies as therapeutics is now widely
recognised.  The availability of human monoclonal antibodies of exquisite
specificity and suitability has profoundly enhanced the perception of their
therapeutic value.  CAT has been a pioneer in developing such antibodies.  Of
eight fully human monoclonal antibodies in human clinical trials worldwide,
CAT has developed, solely or with partners, four.

The foundation for our work is provided by our patented antibody technologies.
 Our antibody libraries now contain over 100 billion (1011) antibody variants.
 We now isolate antibodies against a new therapeutic target in a matter of
days, providing numerous and potent candidates for possible future clinical
development.

These same libraries also provide antibodies in large variety for use as
functional genomics tools.  They play a unique role in exploring the extensive
data available from human genome sequencing, and in identifying future
therapeutic targets.  Our commitment to that future is demonstrated by our
continuing investment in phage display libraries, ProAb and ProxiMol
technologies, our CONT1NUITYTM bioinformatics platform, strategic development
of next generation libraries, and industrialisation of our processes to add
speed, volume and quality control.

In the past year we have made important agreements with Wyeth-Ayerst, Human
Genome Sciences and AstraZeneca. Four CAT derived products are in clinical
trials, all making progress.  D2E7, a human anti-TNF alpha antibody for
rheumatoid arthritis initially isolated and optimised by CAT in collaboration
with BASF Pharma, successfully passed through phase II trials and is now
approaching phase III.  Also with BASF Pharma and Genetics Institute, J695, an
antibody against Interleukin-12 for treatment of autoimmune and inflammatory
disorders, entered phase I trials during the year.  CAT-152, an anti-TGFb2
antibody for reduction of scarring following glaucoma surgery, progressed to
phase II trials.  CAT-192, an anti-TGFb1 antibody being developed for fibrotic
conditions, entered  phase I trials in November 1999.

CAT has also been active during the year in further strengthening its patent
position in the US and Europe, and has been successful in protecting its
patents. 
 
During the year CAT expanded its facilities in Melbourn with the move into an
additional facility, Cambridge House.  This was achieved at modest cost, by
conversion, not new build. 

The Board was saddened by the death in November 1998 of Alistair Cumming, who
had made a significant contribution to the company in his nine months as a
director.  His contributions and judgement were much appreciated, and are much
missed.

In February 1999 we welcomed Dr Paul Nicholson and Professor Uwe Bicker as
Non-Executive Directors.  Both have extensive experience in the pharmaceutical
industry, and bring fresh perspectives to CAT. The Board has benefited already
from their contributions. 

We are grateful too for the continued excellent contribution made by CAT's
Scientific Advisory Board.  

Last, but most important, the Board appreciates the skill, enterprise and
dedication of CAT's staff.

Review of 1999

Strong progress has been made during the year in pursuing the company's
strategy, further establishing CAT's position in the therapeutic antibody
arena. Fully human monoclonal antibodies are now becoming the preferred option
for new product development and antibodies are making major advances as
therapeutics.  CAT is generating short-term revenues from application of its
drug discovery tools and long term revenues from drug development.

Clinical Progress

Four fully human monoclonal antibody candidate drugs isolated and developed by
CAT are now in clinical trials. Significant progress has been made during the
year on all of these candidates.

D2E7 is a fully human monoclonal antibody that neutralises TNFa, and is being
developed by BASF Pharma for the treatment of rheumatoid arthritis. The
clinical need in this indication is clear - over five million people suffer
from the condition in Europe and North America alone, with over one million
patients falling into the category of those for whom treatment with D2E7 is
likely to be of benefit. D2E7 was isolated and optimised by CAT in
collaboration with BASF Pharma, with BASF Pharma having sole responsibility
for its clinical development and marketing. D2E7 is expected to enter phase
III shortly.

Significant new data from clinical trials with D2E7 were presented during the
year. In November 1998, BASF presented data at the American College of
Rheumatology (ACR), from three trials that involved over 140 patients with
rheumatoid arthritis. In June, further new data from a study of D2E7 in
combination with methotrexate in 54 patients with active rheumatoid arthritis
was presented at the European League of Rheumatology meeting, EULAR '99.

In November 1999, at the ACR conference, further trial results were presented
including a 283 patient phase II trial and data showing that D2E7 slows
radiological (X-ray) disease progression, as evidenced by independent scoring
of the severity of bone and joint disease on X-rays of hands, wrists, knees
and feet. 

Overall, based upon over 470 patients treated, D2E7 appears both safe and
effective in patients with rheumatoid arthritis whether it is given by the
intravenous or self-injected subcutaneous route, alone or in combination with
methotrexate.  Both routes of administration achieved comparable results, with
up to 80% of patients achieving a clinically significant response during
chronic treatment. These phase II results provide a clear demonstration of a
clinically significant benefit from the first of a new generation of fully
human monoclonal antibodies to enter clinical trials. 

CAT-152 is a fully human anti-TGFb2 monoclonal antibody developed by CAT to
specifically neutralise the cytokine TGFb2, overactivity of which is believed
to cause scarring in and around the eye. CAT-152 is being developed as a
treatment to prevent scarring following glaucoma surgery. Glaucoma is a major
source of blindness, affecting over 5% of people over 65. At least 10% of
patients require surgery, with scarring being the main reason for failure of
surgery. 

CAT-152 completed an initial phase I/IIa clinical trial earlier this year in
24 patients undergoing glaucoma filtration surgery. Results were presented at
the European Glaucoma Society meeting in September 1999. The aim of the trial
was to evaluate safety, and there were no serious drug related adverse events,
no severe injection site reactions and no post-operative ocular events of
clinical concern.  Encouragingly there was a trend for reduced post-operative
intervention in patients who received CAT-152, which may translate into
reduced failure of surgery. A phase II multicentre clinical trial started in
October 1999 at four leading UK eye hospitals. 

In November 1998, CAT announced that it had suspended patient recruitment to a
phase I/IIa clinical trial in patients undergoing surgery for retinal
detachment. At that stage an unusual observation of the retina, without
evident clinical  consequences, had been made in 3 of 11 patients on CAT-152.
All patients in this trial have completed one year of follow up and no new
retinal changes have been reported in any patients on the trial.
Investigations have been performed to try to elucidate whether CAT-152 was the
cause of the unusual observation. No definitive explanation has been found.
Importantly, however, the unusual appearance was not observed in the glaucoma
surgery trials referred to above.  CAT has no plans to resume clinical trials
in retinal detachment surgery.

In January of this year CAT was selected as the winner of the 1998 UK Prix
Galien Research Award for its phage antibody technology - demonstrated to the
judging panel through the development of CAT-152. 

J695 is the third product in clinical trials and also made good progress
during the year. J695 is a fully human monoclonal antibody that neutralises
Interleukin-12, a pro-inflammatory molecule associated with many severe
autoimmune and inflammatory disorders. 

J695 was created and developed in a collaboration between CAT, BASF Pharma and
Genetics Institute (a research unit of Wyeth-Ayerst Laboratories). Phase I
clinical trials for J695 commenced in June 1999.  BASF Pharma and Genetics
Institute (Wyeth-Ayerst) together are responsible for the clinical development
and marketing of this agent.

The fourth prospective human monoclonal antibody drug - CAT-192 entered
clinical trials in November 1999. CAT-192 is a fully human anti-TGFb1
monoclonal antibody developed by CAT that offers the potential to provide the
first specific treatment for a range of local and systemic fibrotic
conditions. New data presented earlier in the year showed that applying
CAT-192 topically in a model system of wound healing significantly accelerated
re-epithelialisation compared to controls, adding to the potential
anti-scarring benefits of CAT-192. Additionally, strong literature support for
a role for TGFb1 in preventing angiogenesis, tumour growth and metastasis
suggests that CAT-192 may have important applications in the field of cancer.
Preclinical studies are commencing to investigate CAT-192's potential as an
anti-cancer drug.
 
CAT-192 demonstrates the benefits of CAT's investment in increased process
industrialisation. CAT-192 has progressed from confirmation of product
candidate to a phase I clinical trial in less than two years. This increase in
speed is in part due to the new process development facilities at Cambridge
House. 

For both CAT-152 and CAT-192, it is CAT's intention to take the antibody
therapeutic to the point of demonstration of clinical efficacy and then seek a
partner for further clinical development and marketing.

CAT's pipeline is supported by a number of Potential Drug Candidates, from
which CAT will select those with the strongest potential to take forward into
preclinical development. The pool of targets continues to grow, from both
CAT's internal research activity and from CAT's external collaborations.

Strategic Partnerships

CAT announced in March 1999 that it had reached agreement with BASF Pharma on
an extension and modification of their existing collaborative programme. 
Under this programme, BASF may select up to six target antigens against which
CAT will develop antibodies.  CAT, in conjunction with BASF, has developed
fully human monoclonal antibodies against the first two targets selected by
BASF, which are now in clinical trials (D2E7 and J695).  BASF has now selected
a third target, recently announced as being Interleukin-18, a pro-inflammatory
cytokine, and good progress has been made in developing candidate neutralising
antibodies against this target. 

Significant progress has been made under CAT's wide-ranging strategic alliance
with Wyeth-Ayerst, also announced in March. Under the agreement, CAT receives
research funding of US$4 million per year for up to four years, as well as
possible library option, milestone and product licence fees and royalties. CAT
is applying its proprietary ProAb and ProxiMol functional genomics
technologies to potential protein targets based on gene sequence information
provided by Wyeth, together with other research work. 

Wyeth-Ayerst and CAT are also collaborating to validate and develop product
candidates directed at novel proprietary Wyeth-Ayerst targets, with the goal
of developing a broad portfolio of human antibody-based drug candidates.  Each
company has the opportunity to select candidates for further development from
this pool.  The companies will share equally the target and product validation
costs. For those product candidates developed by Wyeth-Ayerst, CAT may receive
licence fees, clinical milestone fees and royalties. For those products
developed by CAT, Wyeth-Ayerst may receive licence fees, clinical milestone
fees and royalties, and limited rights to partner the programme after phase II
clinical trials. 

CAT has also granted Wyeth-Ayerst multi-site options to license CAT's phage
library technology with associated product development options, adding further
value potential.
In June 1999, a small collaboration generating research revenues was signed
with the US biopharmaceutical company, Zymogenetics. As part of this
agreement, CAT will screen its antibody libraries against targets provided.

In August 1999, CAT announced a significant collaborative agreement with Human
Genome Sciences, Inc. (HGS). This agreement provides revenues for research
funding as well as milestone and royalty payments on products developed. The
alliance will harness CAT's expertise in antibody engineering for up to three
target human proteins identified by and proprietary to HGS.  CAT will use its
high-throughput antibody isolation technologies to rapidly generate high
affinity, fully human monoclonal antibodies specific for HGS proteins, to
explore their role in a multitude of disease indications for the development
of novel therapeutics. The initial focus will be on a fast-track proprietary
antigen that HGS has discovered through its genomics programmes. Within six
weeks CAT identified more than 400 different antibodies that bind HGS's first
target, demonstrating the power of this collaboration.

Also in August, CAT announced a research collaboration with the pharmaceutical
company AstraZeneca in which CAT will use its ProAb technology to isolate and
provide antibody-based research reagents specific for cell-surface receptors
and intracellular targets. In addition, ProxiMol technology will be used for
the rapid generation of biologically active antibodies to explore the function
of a number of receptors. Under the terms of the agreement, CAT receives
revenues from AstraZeneca and retains all rights to develop and commercialise
any antibodies generated in the collaboration.

Discovery Technologies

CAT's antibody libraries underpin the Company's drug discovery and development
efforts.  Based on CAT's patented phage display technology, CAT's libraries
now contain a repertoire of over 100 billion distinct antibody variants.
During the year, CAT has invested in its automated screening capabilities to
fully leverage this library diversity. 

CAT continues to invest in technology for the next generation that will ensure
the company's continued pre-eminence in the antibody therapeutic field. Since
its acquisition of Aptein Inc., CAT has developed and is further refining the
ribosome display technology to add to its technology platform.

As announced in the interim report, CAT acquired the rights to a number of
high quality gene libraries from Progenitor. These libraries contain many
novel genes and will help fuel CAT's drug discovery programmes.

CAT has developed two specific functional genomics technologies ProAb and
ProxiMol.  

ProAb works by being able to identify whether a particular protein in the
human body is implicated in disease, thereby offering a potential target for
therapeutic intervention.  Knowing the location of a protein in the body, and
how this changes in the diseased state, can often be a key to its function and
utility.  As a result of investment during the year, this high-throughput
process is now largely automated and the information generated is stored in a
highly interactive bioinformatics system - CONTINUITY.

Once proteins implicated in disease are identified, ProxiMol is used to
generate antibodies that recognise the full-length protein in situ to
facilitate the discovery of specific drug targets.  This can be achieved
without the need to clone, as is often necessary with alternative methods. 
Once antibodies are isolated against specific drug targets, they offer a
starting point for their optimisation as therapeutic agents.

Intellectual Property

CAT was the pioneer of antibody phage display technology and this is reflected
in the breadth of the company's patent portfolio. CAT's key foundation patents
are considered to fall into two broad families: Winter II covers how large
repertoires of human antibody genes are made; McCafferty et al covers the
process (phage display) developed by CAT to obtain the desired antibodies from
these repertoires. 

Patents from both families have been granted in Europe and two key patents
from the McCafferty family, McCafferty and Griffiths, were granted in the US
in October 1999 and March 1999 respectively. 

In the US, the US PTO deemed Winter II 'allowable' but put it into
'interference' with a number of patent applications (Huse/Lerner) jointly
owned by Stratagene and The Scripps Research Institute, both in California.
This year, CAT, Scripps and Stratagene settled the interference by agreeing
that CAT will be the sole exploiter of all the patents in the interference,
subject to certain rights reserved by the MRC, Scripps and Stratagene, and
their pre-existing licencees. In effect, CAT now has the commercial
exploitation rights over the Huse/Lerner patents, as well as Winter II.

In October 1999 the European Patent Office upheld CAT's Winter II patent, with
claims 1 - 31 remaining unaltered and a modification of claim 32, proposed by
CAT, being accepted. 

CAT's European patent on polysome display, granted in July 1998 and acquired
through the purchase of Aptein, was unopposed. This triggered the payment of
the final tranche of consideration to Aptein shareholders  (1.075 million CAT
shares).

Financial Review

Net cash outflow for the financial year ended 30 September 1999 was £11.8
million (1998: £10.0 million) an 18% increase over 1998.  Cash and liquid
resources at the year end were £23.6 million (1998: £34.8 million). CAT made a
loss for the financial year of £12.7 million (1998: £7.0 million).

Revenues in the year totalled £1.8 million (1998: £1.4 million). The profile
of revenues is irregular due to the nature of CAT's business and all of these
revenues occurred in the second six months of the financial year.  Corporate
partners providing revenues included BASF, Wyeth-Ayerst, AstraZeneca and Human
Genome Sciences.

Operating costs at £16.3 million (1998: £11.2 million) were within budget. 
The rise over the previous financial year reflects an increase in the scale of
our activities particularly in the areas of external development, staff costs
and depreciation and amortisation charges.  

Staff numbers have risen over the year from 139 to 145 at year end (the
average over the year was 150). External development expenditure reflects the
commitment to the CAT-152 and CAT-192 programmes.  Increased depreciation
charges at £1.6 million (1998: £0.8 million) were due to a substantial
investment in fixed assets over the last two years, particularly Cambridge
House and the equipment sited there.  Amortisation charges increased
significantly to £0.4 million (1998: £0.1 million), reflecting the first full
year of charges relating to the Aptein patents.

Operating costs were also impacted by £0.5 million paid to date to The Scripps
Research Institute and Stratagene as part of the settlement of the Winter II
patent interference action. £0.3 million of this amount was settled in CAT
shares.

Capital expenditure during the year was £2.7 million (1998: £3.9 million). Of
that £1.1 million represents the purchase of the freehold interest of
Cambridge House in Melbourn and residual fitting out costs. The total cost of
the Cambridge House facility, a major part of which was incurred during the
preceding financial year, was £2.8 million.  CAT now operates from 46,000 sq
ft of facilities in Melbourn.

It is anticipated that CAT's net cash burn rate for the coming year, taking
account of expected revenues, will be approximately £1.3 million per month.
Consistent with statements made previously, CAT expects to require additional
financing for the further development of its business, as its drug  candidates
 progress. 

CAMBRIDGE ANTIBODY TECHNOLOGY GROUP plc
PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 1999


Consolidated Profit and Loss Account
                                                1999 £'000   1998  £'000
Turnover                                           1,799       1,354
Direct costs                                         (81)        (61)
Gross profit                                       1,718       1,293
Research and development expenses                (13,574)     (9,125)
General and administration expenses               (2,684)     (2,078)
Operating loss                                   (14,540)     (9,910)
Interest receivable (net)                          1,810       2,959
Loss on ordinary activities before taxation      (12,730)     (6,951)
Taxation on loss on ordinary activities               (1)         (4)
Loss for the financial year                      (12,731)     (6,955)
Loss per share - basic and fully diluted (pence)    52.4p       31.0p

Consolidated statement of total recognised gains and losses
                                                       1999 £'000  1998 £'000
Loss for the financial year                              (12,731)    (6,955)
Gain/(loss) on foreign exchange translation                   (1)         1
Total recognised gains and losses relating to the year   (12,732)    (6,954)

The losses for both years arise from continuing operations

 CAMBRIDGE ANTIBODY TECHNOLOGY GROUP plc
PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 1999


Consolidated Balance Sheet at 30 September 1999
                                                    1999£'000       1998£'000
Fixed assets                     
Intangible assets                                         4,822       4,576
Tangible fixed assets                                     5,837       4,792
                                                         10,659       9,368
Current assets                     
Debtors                                                     894       1,449
Investment in liquid resources                           22,773       34,824
Cash at bank and in hand                                    849       20
                                                         24,516       36,293
Creditors                     
Amounts falling due within one year                     (3,275)       (2,194)
Net current assets                                       21,241       34,099
Total assets less current liabilities                    31,900       43,467
Creditors                     
Amounts falling due after more than one year                  -          (9)
Net assets                                               31,900       43,458
                     
Capital and reserves                     
Called-up share capital                                   2,528        2,349
Share premium account                                    48,465       45,820
Other reserve                                            13,339       13,339
Shares to be issued                                           -        1,650
Profit and loss account                                 (32,432)     (19,700)
Shareholders' funds - all equity                         31,900       43,458

CAMBRIDGE ANTIBODY TECHNOLOGY GROUP plc
PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 1999


Consolidated Cash Flow Statement
                                                       1999       1998
                                                     £'000       £'000
Operating loss                                     (14,540)     (9,910)
Depreciation charge                                  1,627         832
Amortisation of patents                                389          54
Profit on disposal of fixed assets              -                  (13)
Decrease/(increase) in debtors                         264         (54)
Increase/(decrease) in creditors                     1,072         343
Net cash outflow from operating activities         (11,188)     (8,748)
                     
Returns on investments and servicing of finance              
Interest received                                    2,102       2,694
Interest paid                                           (2)         (3)
                     
Taxation                     
Overseas taxation paid                                  (1)         (4)
                     
Capital expenditure and financial investment                     
Purchase of tangible fixed assets                   (2,672)     (3,874)
Sale of tangible fixed assets                            -          26
                     
Acquisitions  (net of cash and
 cash equivalents acquired)                              -        (110)
                     
Net cash outflow before management of 
liquid resources and financing                     (11,761)    (10,019)
                     
Management of liquid resources                     
Decrease in term deposits                            2,062       1,302
Net sale of securities                               9,989       8,056
                     
Financing                     
Issue of ordinary share capital                        539         298
Capital elements of finance lease rental payments       (4)        (22)
                     
Increase/(decrease)  in cash                           825        (385)



Notes to the financial information

Accounting policies
This financial information has been prepared on a basis consistent with the
accounting policies set out in the annual report for the year ended 30
September 1998, except as noted below.
Goodwill
Following the introduction of Financial Reporting Standard 10 - Goodwill and
Intangible Assets, the Group's accounting policy on goodwill has been revised.
 In previous years goodwill, representing the excess of fair value of the
consideration given over the fair value of the identifiable assets and
liabilities acquired, was written off directly to reserves.  Under the new
policy such goodwill will be capitalised as an asset on the balance sheet and
amortised over its useful economic life, subject to reviews for impairment
where necessary, except that goodwill previously written off directly against
reserves will remain so eliminated.  The adoption of this new policy does not
impact on figures reported in prior periods.
Intangible assets
Following the introduction of Financial Reporting Standard 10 - Goodwill and
Intangible Assets, the Group's accounting policy on intangible assets has been
revised.  In previous years the policy was that patents purchased be stated at
cost and depreciated on a straight line basis over their remaining term with
provision being made for any impairment.  The revised policy that all
purchased intangible assets falling within the scope of the standard (which
does not apply to research and development costs) will be capitalised as
assets on the balance sheet and amortised over their useful economic lives,
subject to reviews for impairment where necessary.  This applies to
intangibles purchased separately from a business and also to intangibles
acquired as part of the acquisition of a business, if their value can be
measured reliably on initial recognition. The adoption of this revised policy
does not impact on figures reported in prior periods.
Loss per share
Potentially dilutive issueable shares are only included in the calculation of
fully diluted earnings per share if their issue would decrease net profit per
share or increase net loss per share.  The Group's basic and fully diluted
earnings per share are therefore equal.
Loss per ordinary share (basic and fully diluted) is based on the loss for the
financial year of £12,731,000 (1998: £6,955,000) and a weighted average number
of ordinary shares of 24,314,191 (1998: 22,457,778).

Analysis and reconciliation of net funds
                  1 Oct 1998  Cash flow  Exchange movement      30 Sept.1999
                   £'000        £'000          £'000                £'000
Cash at bank          20          825              4                  849
Liquid resources  34,824      (12,051)             -               22,773
Finance leases       (13)           4              -                   (9)
Net funds         34,831      (11,222)             4               23,613

                                              1999 £'000       1998 £'000
Decrease in cash in the year                         825             (385)
Decrease in liquid resources                     (12,051)          (9,358)
Decrease in lease financing                            4               22
Change in net funds resulting from cash flows    (11,222)          (9,721)
Exchange movement                                      4               (6)
Movement in net funds in year                    (11,218)          (9,727)
Net funds at 1 October 1998                       34,831           44,558
Net funds at 30 September 1999                    23,613           34,831


Reconciliation of movements in group shareholders' funds
                                                          1999       1998
                                                        £'000       £'000
Loss for the financial year                           (12,731)     (6,955)
Other recognised gains and losses relating to the year     (1)          1
                                                      (12,732)     (6,954)
New shares issued                                       2,824       3,059
Adjustment to listing expenses                              -          66
Shares to be issued - deferred consideration           (1,650)      1,650
Net reduction in shareholders' funds                  (11,558)     (2,179)
Opening shareholders' funds                            43,458      45,637
Closing shareholders' funds                            31,900      43,458

Financial Statements
The preceding information does not constitute the company's statutory
financial statements for the year ended 30 September 1999 within the meaning
of section 240 of the Companies Act 1985 but is derived from those financial
statements.  The statutory financial statements for the company for the year
ended 30 September 1999 will be delivered to the Registrar of Companies after
the Company's Annual General Meeting.  The auditors have reported on those
financial statements and their report was unqualified.

The annual report and financial statements for the year ended 30 September
1999 will be posted to shareholders by 20 December 1999 and will be available
shortly thereafter from:
The Company Secretary                            
Cambridge Antibody Technology Group plc              
The Science Park                                   
Melbourn
Cambridgeshire
SG8 6JJ, UK       
Tel: [phone]

This preliminary announcement was approved by the Board on 26 November 1999.



Notes to Editors


Cambridge Antibody Technology (LSE: CAT) is a UK biotechnology company using
its proprietary technologies in fully human monoclonal antibodies for drug
discovery and drug development.  Based in Melbourn, 10 miles south of
Cambridge, England, CAT currently employs around 150 people.  In March 1997,
CAT completed its initial public offering and listing on the London Stock
Exchange, raising approximately £41 million.

CAT has a world-leading platform technology for rapidly isolating fully human
monoclonal antibodies using phage display systems.  CAT has an extensive phage
display antibody library, currently incorporating around 100 billion distinct
antibodies. This library forms the basis for the company's strategy to develop
a portfolio of clinical development programmes and for discovering new drug
leads using functional genomics.  Four fully human therapeutic antibodies
developed by CAT are at various stages of clinical trials.

CAT has a number of licence and collaborative agreements in place with
pharmaceutical and biotechnology companies including: Eli Lilly, Pfizer, BASF
Pharma, Genentech, ICOS Corporation, Genetics Institute/BASF Pharma,
Wyeth-Ayerst, Human Genome Sciences and AstraZeneca.