MOU with Swansea University

Physiomics PLC
17 December 2007


                                                                  Physiomics plc
                                                             The Magdalen Centre
                                                         The Oxford Science Park
                                                          Robert Robinson Avenue
                                                                          Oxford
                                                                         OX4 4GA
                                                                              UK

                                                                Tel [phone]
                                                                Fax [phone]


17 December 2007


                                 Physiomics Plc

                        ('Physiomics' or 'the Company')


MOU with Swansea University (access to Supercomputer 'Blue C')

Physiomics plc (AIM: PYC), the Oxford, UK based systems biology company, is
pleased to announce that it has signed a Memorandum of Understanding ('MOU')
with the Institute of Life Science of Swansea University ('ILS'), which will
provide mutual benefits.

Under the terms of the MOU, Physiomics will have access to the Supercomputer
'Blue C', one of the most powerful computers in the world dedicated to Life
Science and is the result of a collaboration between the University, the Welsh
Assembly Government and computer giant IBM. This will reinforce Physiomics'
modelling framework and help to address the ever increasing computing
requirements in the field of System Biology.

Collaborative research programs will be set up with the oncology research groups
at the ILS, with the first collaboration already agreed with the group of Dr
Shareen Doak. These programs will focus on the effect of anticancer drugs and
Physiomics will contribute with its modelling expertise in biological systems
performing simulations of mutual interest.

Dr Christophe Chassagnole, COO of Physiomics, said:


'Physiomics has continued to develop its technology to the point where more
powerful computer facilities were required. The team has already run some pilot
studies using the ILS 'Blue C' supercomputer and have demonstrated its potential
to reduce tasks that would take many hours to complete, to just a couple of
minutes. As well the research collaborations with the ILS' research teams will
give us access to invaluable expertise and experimental data in the oncology
field'.


David Lewis, Director of the Blue C facility at Swansea University's ILS, said:

'We are delighted to enter a very constructive Collaborative Research agreement
with Physiomics. Our ILS project is funded (in part) by European Union
Structural Funds, which are focussed on promoting Economic Development in West
Wales and the Valleys. Swansea University's School of Medicine, and the
Institute of Life Science, plays a key role: creating the core of a 'Life
Sciences cluster' of Academic Research, together with scientific collaborations
with high-tech companies (both small and large) in this field. We see our
agreement with Physiomics as being a very visible proof-point of our ability to
reach out into the private sector, to find partners and collaborators, together
with whom we can push forward the frontiers of medical science. Supercomputing
plays a key role, and we look forward to working closely with Physiomics'
scientists.

Contact Details:


Physiomics plc:
Dr Christophe Chassagnole, phone [phone]
E-mail: [e-mail]

Swansea University:
Ms. Sian Newman, Communications Manager, ILS, phone [phone]
E-mail: [e-mail]

Grant Thornton Corporate Finance:
Philip Secrett and Colin Aaronson, phone [phone]



Information on Physiomics plc
Physiomics plc (AIM:PYC) is a computational systems biology services company
applying simulations of cell behaviour to drug development to reduce the high
attrition rates of clinical trials. As 80-90 per cent of all clinical drug
candidates fail to reach the market, estimates1 show that an overall ten per
cent improvement in success rates could reduce the cost of one drug's
development by as much as $242 million, from the current estimate of around $800
million.

Physiomics develops computational systems biology models to predict and
understand cancer drug efficacy from pre-clinical research to clinical
development. Physiomics has created detailed mathematical models incorporating
most important molecular events taking place during the human cell cycle and
apoptosis processes. Physiomics developed SystemCell(R) technology, a multi-
cellular environment software, which enables the simulation of population of
'virtual cells'.

Physiomics, based in Oxford, UK, was founded in 2001, and floated on AIM
in 2004. For further information, please visit www.physiomics-plc.com

SystemCell(R) is a registered trademark of Physiomics plc

1 Tufts Center Impact Report 2002



Information on Institute of Life Science (Swansea University)

http://www.swansea.ac.uk/ils


Born out of the success of the School of Medicine at Swansea University, the
Institute of Life Science (ILS) is both a concept and a physical space.  Its aim
is the application of interdisciplinary science to health and medicine and the
coupling of medical advance with economic development. With this in mind, the
ILS marks the beginning of great new things for Wales's innovative researchers
and business developers alike.



Life science is recognised as one of the most fertile sources of technology
transfer in the world, giving the ILS the potential to create significant
economic wealth.  Opportunities are arising from areas such as research
collaboration, intellectual property licensing, spinout companies and inward
investment and, in readiness for these, the ILS is well equipped.  With
state-of-the-art laboratories as well as a dedicated Business Development
Centre, complete with Business Incubation Suites and a specialist external
relations team, the focus here is on building long-term commercial-academic
links and making first-class medical progress.



Research at the ILS investigates all aspects of the science of life, from the
fundamental molecular characteristics of diseases and treatments through to
healthcare delivery and the efficient practice of medicine.  Pioneers in
laboratory-based bio-medical research work together with colleagues in health
services and public health research on complex health issues that have both
biological and social elements, such as diabetes and mental health disorders,
and the outcome of these collaborations is a more rounded understanding of human
health.



The emphasis at the ILS is high quality inter- and multi-disciplinary research.
The work reflects the post-genomic era, in which scientists have a near complete
picture of the human genome at hand and can start collaborating in order to
identify the complex genetic background of many diseases and start improving
treatments.  It is also an era of increasing healthcare delivery challenges,
such as hospital-acquired infections and insufficient data collation.  The ILS
is responding to these challenges and many others with innovative zeal, focusing
on discovering radical ways to treat disease and deliver healthcare.  In short,
it is taking medical advances from the laboratory into hospitals, surgeries and
homes.



As well as traditional research, the ILS and Swansea University also provide a
unique infrastructure for computational biology.  This is centred on the Blue C
supercomputer, one of the very few supercomputers in the world dedicated to life
science research, which has been given a permanent home at the university as
part of a high profile collaboration with IBM.  The agreement is part of IBM's
continued commitment to the healthcare and life science sectors and it is also a
part of the company's strategy of forging relationships with some of the world's
leading research organisations.


The computer can perform calculations that would take hours or even days on an
existing computer - its current average speed is 2.7 teraflops (this is an
industry-recognised measure of high performance).  The use of supercomputing to
drive forward medical treatment is at the forefront of both genetic and
molecular laboratory-based research and it is also revolutionising community-
based healthcare studies by bringing together disparate sets of information on
patients and trends.  By bringing these aspects together, supercomputing will
one day enable doctors to tailor treatment individually to each patient's needs.


END




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