Issue of Equity

Avacta Group plc                                

                               Issue of Equity                                

Acquisition of Reactivlab Limited 


Avacta Group plc ("Avacta" or the "Company"), which develops detection and
analysis technology aimed primarily at the pharmaceutical and healthcare
markets, with additional applications in the industrial and security sectors,
is pleased to announce that in respect of the acquisition of Reactivlab Limited
that was announced on 3 March 2010, following agreement of the Completion
Accounts, an additional consideration of £8,467.58 will be paid to reflect the
free cash in Reactivlab. This additional consideration will be satisfied by the
issue of 471,731 ordinary shares of 0.1p ("Ordinary Shares"). Deferred
consideration is payable on the second and third anniversary of completion as
previously announced.


Application has been made for 471,731 new Ordinary Shares to be admitted to
trading on AIM and dealings are expected to commence on 3 August 2010.


The total number of Ordinary Shares in issue following the above issue will be
1,434,814,870 each with voting rights.  No Ordinary Shares are held in
Treasury.


The above figure of 1,434,814,870 shares may be used by shareholders as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in the
Company under the FSA's Disclosure and Transparency Rules.

                                                                   29 July 2010

 

For further information, please contact:

Avacta Group plc                        Tel:  [phone]         
                                                                    
Alastair Smith, Chief Executive Officer www.avacta.com              
                                                                    
Tim Sykes, Chief Financial Officer                                  
                                                                    
Broker                                  Tel:  [phone]         
                                                                    
XCAP Securities Limited                 www.xcapgroup.com           
                                                                    
John Grant/Karen Kelly/David Newton                                 
                                                                    
Nominated Adviser                       Tel:  [phone]         
                                                                    
Grant Thornton Corporate Finance        www.grantthornton.co.uk     
                                                                    
Philip Secrett/Colin Aaronson                                       
                                                                    
Financial PR                            Tel:  [phone]         
                                                                    
Haggie Financial LLP                                                
                                                                    
Nicholas Nelson/ Henny Breakwell        [e-mail]
                                                                    

 

Notes to Editors:

About Avacta

Avacta was spun-out from the University of Leeds in 2004 by its current
management team as a biophysics company, with the aim of combining the
disciplines of physics and biology to develop innovative technologies and
expert technical services to address unmet needs in the biopharmaceutical and
healthcare sectors. Avacta has a core bio-analytical technology development
programme addressing the needs of the biopharmaceutical sector to fully
characterise their new products at the earliest stage in their development to
reduce the risk of late stage failure. High end analytical instruments and
leading edge contract research services are being provided to the
biopharmaceutical and healthcare/personal-care materials sectors through
Avacta's biotech support division, Avacta Analytical. High value solutions for
rapid, point of care diagnostics based on these core bio-analytical
technologies, with a near term focus on veterinary diagnostics, are being
delivered through Avacta Animal Health. Longer term these technologies will be
transferred into the human clinical diagnostics market. Avacta listed on AIM in
August 2006.