First Day of Dealings on AIM

Evolutec Group PLC 2 August 2004 For immediate release 2 August 2004 EVOLUTEC GROUP PLC First Day of Dealings on the Alternative Investment Market ('AIM') Evolutec Group plc ('Evolutec' or 'the Company') (LSE: EVC), the biopharmaceutical company developing novel products for the treatment of allergic, inflammatory and autoimmune diseases, is pleased to announce its flotation on the Alternative Investment Market of the London Stock Exchange ('AIM') today. • Evolutec isolates potential drugs from the saliva of ticks, which contain an array of novel molecules that suppress mammalian immune responses. These molecules offer the potential of treating human diseases caused by over-responsiveness of the immune system and have evolved over millions of years to enable ticks to take blood from their hosts. • The Company's lead product, rEV131, is a recombinant histamine-binding protein. The Directors believe rEV131 is the only product in clinical trials that impacts the recently discovered H4 receptor. rEV131 has completed preliminary phase II clinical trials in allergic conjunctivitis, rhinitis and ocular inflammation. • £6.0 million (gross) was raised for Evolutec via a Placing at the price of 125 pence per share and via the exercise of outstanding warrants. • Collins Stewart is the Company's nominated advisor and broker. Elixir Securities acted as research consultants. • On Admission, the market capitalisation of Evolutec at the Placing Price will be £12.7 million (post new money). • The proceeds will be used to fund proof of concept phase II clinical trials in allergic rhinitis and phase II and III trials in post-cataract surgery for rEV131 and to fund the development of the Company's pipeline. • ISIS Asset Management plc, one of Evolutec's principal shareholders, has invested £1.8 million in the Fundraising. • Evolutec's directors have invested £217,500 in the Fundraising. FUNDRAISING STATISTICS Placing Price 125p per share Number of Ordinary Shares placed on behalf of the Group 4,560,000 shares Gross proceeds of the Placing £5.7 million Proceeds from exercise of Warrants £0.3 million Net proceeds available to the Company £5.1 million Market capitalisation at the Placing Price on Admission £12.7 million Issued Share Capital after issue 10,198,048 shares Commenting on the announcement, Dr Mark Carnegie Brown, Evolutec's Chief Executive Officer, said: 'I am delighted that Evolutec has joined AIM today. Our support from investors has been extremely strong - both from new and existing institutions. We look forward to building value for our shareholders and reporting positive news back to the market.' ENDS For further information: Evolutec 01865 784070 Mark Carnegie Brown, Chief Executive Officer Nicholas Badman, Chief Financial Officer www.evolutec.co.uk Collins Stewart 020 7523 8350 Chris Howard Elixir Securities Andrew Tivenan/Steven Cox 020 7743 8810 Buchanan Communications 020 7466 5000 Mark Court/Tim Anderson/Mary-Jane Johnson Note to Picture Editors: High resolution images are available for the media to view and download free of charge from http://www.vismedia.co.uk Further details about Evolutec: Evolutec, which is based at the Oxford Science Park in Oxford, UK, was founded in 1998 from technology originally developed by the National Environment Research Council, a Government funded organisation that supports environmental science. Evolutec was funded as a private company by investors including Isis Asset Management and 3i. Evolutec isolates potential drugs from the saliva of ticks. The tick remains undetected by its hosts, including humans, by injecting an array of molecules into the skin that suppresses normal defence mechanisms. These stealth molecules have evolved over millions of years to enable the tick to take a blood meal from its host. Evolutec employs the tick's evolutionary stealth technology to offer the potential of treating human diseases caused by over-responsiveness of the immune system. The Company's lead product, rEV131, is a histamine-binding protein that has progressed to phase II trials in allergic conjunctivitis, rhinitis and ocular inflammation. Positive preclinical data have been generated in asthma and acute respiratory distress syndrome. rEV131 is understood to be the only product currently in clinical trials that impacts the H4 receptor, a receptor implicated in many forms of inflammatory disease. The Company intends to start key clinical trials with rEV131 in allergic rhinitis and post-cataract surgery. The Company has a further two products in preclinical development and a significant pipeline of other product candidates. Evolutec's expertise in tick biology has enabled it to develop vaccines against ticks and tick-borne disease. In September 2003 the Company partnered its programme to develop anti-tick vaccines in animals with Merial, one of the world's leading animal healthcare companies. Evolutec has used investment of just £6.6 million to bring the Company to its current stage of development. Evolutec's directors will continue to pursue a lean outsourcing business model, which will seek to capture maximum value for shareholders potentially by keeping specialist ophthalmic indications in-house and licensing-out larger indications of rEV131. The Company has an experienced management team that has a wide range of industry and financial expertise from within and outside the sector and specific know-how in bringing new technology to market. Evolutec is headed by Chairman Dr David Bloxham, a former director of companies including Celltech Group. The Chief Executive Officer, Dr Mark Carnegie Brown, has 16 years' experience with ICI and Zeneca in research, commercial and managerial roles. The Chief Financial Officer, Nicholas Badman, is a chartered accountant with 10 years' experience in corporate finance including positions at investment banks HSBC and Schroder Salomon Smith Barney. Evolutec's non-executive directors are John Burke, a former Chairman of Glaxo Pharmaceuticals, and Dr Graeme Hart, who is also Chairman of Corin Group and a non-executive director of Huntleigh Technology. This information is provided by RNS The company news service from the London Stock Exchange
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