Co-devlopment Agreement

22 April 2013

SAREUM HOLDINGS PLC and SRI INTERNATIONAL
("SAREUM" and "SRI")

SAREUM and SRI INTERNATIONAL ANNOUNCE AGREEMENT to ADVANCE DEVELOPMENT of TYROSINE KINASE 2 INHIBITORS for TREATMENT of AUTOIMMUNE and INFLAMMATORY DISEASES

Cambridge, UK and Menlo Park, Calif. - April 22 2013 - Sareum (AIM: SAR), the specialist cancer drug discovery business, has entered a co-development agreement with independent nonprofit research and development institute SRI International to advance Sareum's Tyrosine Kinase 2 (TYK2) small molecule drug discovery program for readiness in human clinical trials.

Under the agreement, research will focus on the discovery and development of small molecule therapeutics targeting TYK2, one of the four janus kinase (JAK) family members implicated in a number of inflammatory diseases.

Sareum's CEO, Dr. Tim Mitchell, commented, "The agreement with SRI gives us access to world-class autoimmune disease biology and drug development expertise. It validates both our business model and the quality of our own research. We are delighted to be working with SRI. As we have stated in the past, our intention has been to enter into agreements that help develop our research into commercially viable products in the most effective and efficient way."

As part of the agreement, SRI Biosciences' Center for Immunology and Infectious Diseases will co-lead discovery and development activities.  Sareum will retain the option to further develop and commercialize the program.

"Because of TYK2's critical role in the signalling of inflammatory cytokines, there is strong scientific rationale for developing TYK2 inhibitors for the treatment of autoimmune and inflammatory diseases such as multiple sclerosis, rheumatoid arthritis, sepsis, and Crohn's Disease," said Annalisa D'Andrea, Ph.D., senior director of SRI's Center for Immunology and Infectious Diseases. "Combining SRI's expertise in autoimmune and inflammatory diseases with Sareum's experience in compound design will enable us to develop much-needed products that may benefit people throughout the world."

For further information:

Sareum Holdings plc
Tim Mitchell		01223 497 700
Sanlam Securities UK (Nomad)
Simon Clements		020 7628 2200
Hybridan LLP (Broker)
Claire Noyce / Deepak Reddy		020 7947 4350
The Communications Portfolio (Media enquiries)
Ariane Comstive [e-mail]		020 7536 2028
SRI International Dina Basin
[phone]
[e-mail]

Notes for editors:

About Sareum Holdings plc

Sareum is a drug discovery company, headquartered in Cambridge UK, that produces targeted small molecule therapeutics, focusing on cancer and auto-immune disease. Sareum aims to successfully deliver drug candidates for licensing to pharmaceutical and biotechnology companies at the pre-clinical or early clinical trials stage.

Sareum's Chk1 kinase cancer research programme is a joint research collaboration with The Institute of Cancer Research and Cancer Research Technology Limited. The development candidate resulting from the collaboration increases the effectiveness of current cancer therapeutics in several in-vivo cancer models.

SKIL® (Sareum Kinase Inhibitor Library) is Sareum's drug discovery technology platform that has so far produced the Company's Aurora+FLT3, Aurora+ALK VEGFR-3, FLT3 & TYK2 kinase cancer and auto-immune disease research programmes. SKIL can also generate drug research programmes against other kinase targets.

Sareum Holdings plc is listed on the AIM market of the London Stock Exchange and trades under the symbol SAR.  For further information, please visit www.sareum.co.uk

About SRI's Biosciences Division
SRI's Biosciences division carries out basic research, drug discovery, and drug development, and provides contract (CRO) services. SRI has all of the resources necessary to take R&D from initial discoveries into human clinical trials. SRI's product pipeline has yielded marketed drugs, therapeutics currently in clinical trials, and additional programs in earlier stages. In its CRO business, SRI has helped government and commercial clients and partners advance many drugs into patient testing. SRI is also working to create the next generation of technologies in areas such as diagnostics, drug delivery, medical devices, and systems biology.

About SRI International
Innovations from SRI International have created new industries, billions of dollars of marketplace value, and lasting benefits to society-touching our lives every day. SRI, a nonprofit research and development institute based in Silicon Valley, brings its innovations to the marketplace through technology licensing, new products, and spin-off ventures. Government and business clients come to SRI for pioneering R&D and solutions in computing and communications, chemistry and materials, education, energy, health and pharmaceuticals, national defense, robotics, sensing, and more.
www.sri.com

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Source: SAREUM HOLDINGS PLC via Thomson Reuters ONE

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