Re Agreement

Billam PLC
12 September 2002

Billam Plc

Acquisition of investee companies

The Directors of Billam Plc. are pleased to announce that EiRx Pharma Limited
has acquired EiRx Therapeutics Ltd, Physiomics plc and CuDos Ltd, companies in
which Billam or its subsidiaries held stakes of 22.62%, 40.22%, and 30.00%
respectively, to create a unique, new pharmaceutical company with substantial
competitive advantages in early-stage drug discovery for inflammatory diseases
and cancer.  Following the acquisition Billam and its subsidiaries hold a 34.18%
shareholding in EiRx Pharma.  The merger of ground-breaking science and
technology in molecular biology, cell biology, systems biology and human tissue
culture presents an exceptionally innovative and highly successful approach to
early-stage drug discovery. The directors of EiRx Pharma believe that this
particular technological mix places EiRx Pharma among the top leading-edge drug
discovery companies world-wide. Sustaining the medium and long-term revenue
streams from therapeutic development is the prospect of immediate revenue
generation from the activities of  CuDos and Physiomics.

Scientifically and technically the company is built around:

  • An original, and patented, data-driven mathematical simulation of
    biological processes that can identify potential sites of intervention
    (targets) from first principles and permits the distinction of high-value
    clinical targets from those of lesser value.

  • Novel research identifying early points of intervention into the
    genetically regulated processes of natural cell death (Apoptosis). This is
    yielding patented targets that effectively modulate apoptosis in disease
    states in a safe manner.

  • A series of compounds demonstrating strong promise in apoptotic regulation
    that are being placed on a fast track pre-clinical timetable for oncological
    applications.

  • A distinctive and wide range of genomic, proteomic, cell biology, tissue
    and organ culture expertise. Complemented by exceptional knowledge of
    bioinformatics, systems biology, discovery and pre-clinical procedures.

Linking the pioneering systems biology of Physiomics, the toxicology, biomarkers
and pre-clinical development capabilities of CuDos and  EiRx Therapeutics
apoptosis regulating targets and compounds, enables EiRx Pharma to drive its
therapeutic development programme far more effectively - leading in turn to a
faster, more cost effective, commercialisation of its technological portfolio
and the  acceleration of the target discovery effort into a pipeline of
pre-clinical therapies progressing to clinical development.  Supporting this is
a hybrid business model built around fee-for-service income from systems biology
and ADMET which sustain the drive to revenues from its discovery and
developmental activities. This approach will enable EiRx Pharma Limited to
deliver its full potential by yielding substantial returns at a compelling
valuation.

The formation of EiRx Pharma has attracted considerable interest from industry
specialists and pharmaceutical companies alike resulting in a number of joint
ventures  currently in progress.

Peter Hoskins  for Billam Plc added:

'EiRx Pharma has established a number of viable procedures that present non
animal alternatives to pharmaceutical research  and development and will
continue to adopt this practise wherever practical.'

Investors include: 3i Plc, Enterprise Ireland and University College Cork, and
Billam's subsidiary World Life Sciences Ltd.

The attributed value of Billam Plc's shareholding in EiRx Pharma Ltd., based on
the agreed relative valuations of the three acquired companies is £4,545,866.

To contact the company and for further information:

Peter Hoskins

Telephone           [phone]

Email               [e-mail]




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