Re: Government Support

ReNeuron Group plc
02 December 2005


     ReNeuron welcomes Government pledges to support stem cell research and
                             development in the UK


Guildford, UK, 2 December 2005: ReNeuron Group plc (LSE: RENE.L) has noted the
UK Government responses to the report and recommendations of the UK Stem Cell
Initiative Panel, chaired by Sir John Pattison.  The report sets out the status
of stem cell research in the UK and provides a vision and strategy to maintain
the UK's position as a world leader in this area of bioscience.

The recommendations in the Panel's report were accepted in full, with the
Government committing to provide £100 million towards stem cell research
projects over the next two years, with increasing annual spend thereafter as the
field develops.

Commenting on the announcement, Michael Hunt, CEO of ReNeuron, said:

'The Government's responses to the UK Stem Cell Initiative's recommendations are
a significant step in the right direction in terms of maintaining the UK's
pre-eminence in stem cell research, especially in light of the frustrations felt
by researchers elsewhere in the world, such as the US, where the legislative
environment in this area is far less supportive.    We particularly welcome the
commitment by the Government, through the Medical Research Council, to
contribute to funds raised by the UK Stem Cell Foundation for clinical and
translational stem cell research in the UK.

'Although much more resource and support will be required in the longer term to
keep the UK ahead globally in this field as stem cell technologies progress, the
UK currently remains one of the world's best places in which to conduct stem
cell research and development.'


Enquiries:

ReNeuron
Michael Hunt, Chief Executive Officer                    Tel: [phone]

Financial Dynamics                                      Tel: [phone]
David Yates
Sarah Macleod
Anna Keeble


Notes to Editors

ReNeuron is a leading, UK-based adult stem cell therapy business. The Company is
applying its novel stem cell platform technologies in the development of
ground-breaking stem cell therapies to serve significant and unmet or poorly-met
clinical needs.

ReNeuron has used its c-mycERTAM technology to generate genetically stable
neural stem cell lines. This technology platform has multi-national patent
protection and is fully regulated by way of a chemically-induced safety switch.
Cell growth can therefore be completely arrested prior to in vivo implantation.

The Company's lead stem cell therapy, ReN001 for chronic stroke disability, is
in late pre-clinical development.  The Company plans to file for approval to
commence initial clinical trials in stroke by mid-2006, with trials commencing
as soon as possible thereafter.

In addition to its ReN001 stroke programme, ReNeuron has programmes to develop
stem cell therapies to address Huntington's disease, Parkinson's disease, Type 1
diabetes and diseases of the eye.

ReNeuron has also leveraged its stem cell technologies into non-therapeutic
areas - its ReNcell range of cell lines for use in drug discovery applications
in the pharmaceutical industry.

The Company successfully completed its flotation on the London AIM market in
August 2005, raising £9.5million before expenses.  At flotation, the Company
also issued warrants which, if exercised, will raise a further £5.7m for the
Company by February 2007.  ReNeuron's shares are traded under the symbol RENE.L,
and its warrants are traded under the symbol RENW.L.

Further information on ReNeuron and its products can be found at
www.reneuron.com.


This announcement contains forward-looking statements with respect to the
financial condition, results of operations and business achievements/performance
of ReNeuron and certain of the plans and objectives of management of ReNeuron
with respect thereto. These statements may generally, but not always, be
identified by the use of words such as 'should', 'expects', 'estimates',
'believes' or similar expressions. This announcement also contains
forward-looking statements attributed to certain third parties relating to their
estimates regarding the growth of markets and demand for products. By their
nature, forward-looking statements involve risk and uncertainty because they
reflect ReNeuron's current expectations and assumptions as to future events and
circumstances that may not prove accurate.  A number of factors could cause
ReNeuron's actual financial condition, results of operations and business
achievements/performance to differ materially from the estimates made or implied
in such forward-looking statements and, accordingly, reliance should not be
placed on such statements.



The terms 'ReNeuron' or 'the Company' refer to ReNeuron Group plc and its
subsidiary undertakings.




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