Re Tax Benefit

Microgen PLC
3 December 2001


                       Tax benefit of £1.5 million

The Group's main trading subsidiary, Microgen UK Limited, has received 
confirmation from the Inland Revenue of settlement of its Corporation Tax 
liability for the period ended 31 December 1998. The settlement will result in a
prior years' Corporation Tax credit of approximately £1.5 million being 
recognised in the Group profit and loss account for the period ending 31 
December 2001 equating to earnings per share of approximately 2.9 pence. A cash 
repayment of £1.4 million including interest has been received from the Inland 
Revenue.

The principal issues that gave rise to the repayment are:

(i) the agreement with the Inland Revenue of March 1982 valuations of shares in
Microgen UK Limited's overseas subsidiaries, Capella AB and Eurocom Depora, 
disposed of in October 1998 in the first phase of the strategic restructuring of
the Group; and, 

(ii) a provision for obligations under surplus property leases made in 1998 that
is now an allowable deduction for tax purposes.

There are consequent amendments to Microgen UK Limited's Corporation Tax 
computations for 1999 and 2000 relating to movements on the surplus property 
provision and these amendments are incorporated into the prior years' tax credit
of £1.5 million stated above


Contact :

Mike Phillips, Group Finance Director       01753-847123