Research Update

Evolutec Group PLC
31 October 2006

For immediate release

31 October 2006





                               Evolutec Group plc
                         ('Evolutec' or the 'Company')



              Confirmation of rEV131's novel mechanism of action



              Potential to re-define the allergic rhinitis market





Evolutec Group plc (AIM: EVC), the biopharmaceutical company developing novel
products for the treatment of allergic, inflammatory and autoimmune diseases,
announces additional mechanism of action data on its lead development candidate,
rEV131, which is currently in a Phase IIb trial for allergic rhinitis (hay
fever).



rEV131 is a novel histamine binding molecule.  Evolutec has now demonstrated
that rEV131 has an equivalent impact on the histamine H4 receptor (the 'H4
receptor') to an experimental small molecule H4 receptor blocker. This may
explain the late stage anti-inflammatory effects of rEV131, such as the
significant reduction in nasal congestion observed in previous clinical trials
and the preclinical proof of concept data in asthma.



As far as the management of Evolutec are aware, rEV131 is the only
clinical-stage drug development candidate with this H4 receptor impact.   The
Company is on schedule to deliver the results of its North American 300 patient
Phase IIb allergic rhinitis trial by the year-end.



Mark Carnegie Brown, Chief Executive of Evolutec, said:   'We believe that
rEV131 has the potential to fill the unmet need in allergic rhinitis for a new
product which has a fast onset and reduces all symptoms.  rEV131 is targeted at
the nasal steroid segment led by Flonase(R), Nasonex(R), Rhinocort(R) and
Nasacort(R).'





                                      ENDS

Enquiries:


Evolutec                                                                                      0118 922 4480
Mark Carnegie Brown, Chief Executive Officer
Nicholas Badman, Chief Financial Officer
www.evolutec.co.uk

Financial Dynamics                                                                            020 7831 3113
David Yates
Ben Brewerton





Notes for Editors:



About Evolutec



Evolutec, which is based in Reading, UK, is a clinical stage biopharmaceutical
company with a focus on allergy, inflammation and autoimmune diseases.



The Company has completed a positive 112 patient proof of concept Phase IIa
clinical trial with rEV131, its lead product development candidate, in allergic
rhinitis.  rEV131 met the primary endpoint of reducing the sum of symptom scores
at statistically significant levels within 45 minutes of administration.  rEV131
is aimed at the nasal steroid market in rhinitis but also has effects on
symptoms treated by histamine H1 receptor (H1 receptor') antagonists such as
Zyrtec, Clarinex and Allegra. In addition to the Phase IIb trial in rhinitis,
Evolutec is undertaking a proof of concept Phase II trial in eye inflammation
following cataract surgery. Evolutec also intends to complete a proof of concept
Phase II trial in dry eye in 2007. Following positive preclinical data, Evolutec
intends to undertake a Phase I trial with rEV131 in asthma in 2007.



The Company's second preclinical development candidate, rEV576, is a complement
inhibitor. rEV576 has demonstrated preclinical activity against the autoimmune
diseases myasthenia gravis and Guillain-Barre Syndrome, asthma and acute
myocardial infarction ('AMI') (heart attack).  Evolutec has established a
research collaboration with Case Western Reserve University, Cleveland, Ohio, to
undertake  further preclinical work with rEV576 in myasthenia gravis.



The rights to Evolutec's vaccine technology for animals are partnered with
Merial.  Merial is currently undertaking work in tick-borne diseases.



Evolutec is listed on the AIM market of the London Stock Exchange and develops
therapeutics originally isolated 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 host immunity.  These stealth molecules have
undergone millions of years of natural evolution to select a promising efficacy,
potency and safety profile. Evolutec employs the tick's evolutionary stealth
technology to offer the potential of treating human diseases.



Safe Harbour statement: this news release may contain forward-looking statements
that reflect the current expectations of the Company regarding future events.
Forward-looking statements involve risks and uncertainties. Actual events could
differ materially from those projected herein and depend on a number of factors
including the success of the Company's research strategies, the applicability of
the discoveries made therein, the successful and timely completion of clinical
studies, the uncertainties related to the regulatory process, the successful
integration of completed mergers and acquisitions and achievement of expected
synergies from such tractions, and the ability of the Company to identify and
consummate suitable strategic and business combination transactions.




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