CAT extends offer for DRC

Cambridge Antibody Tech Group PLC
13 March 2002


02/CAT/13

Not for release in Australia, Japan and the Republic of Ireland

FOR IMMEDIATE RELEASE

21.00 GMT 16.00 EST Tuesday 12 March 2002
For Further Information Contact:

Cambridge Antibody Technology            Weber Shandwick Square Mile (Europe)
Tel: [phone]                Tel: [phone]
David Chiswell, Chief Executive Officer  Kevin Smith
John Aston, Finance Director             Graham Herring
Rowena Gardner, Head of Corporate
Communications
                                         BMC Communications/The Trout Group(USA)
                                         Tel: [phone]
                                         Brad Miles, ext 17 (media)
                                         Brandon Lewis, ext.15 (investors)




        Cambridge Antibody Technology Extends Offer for Drug Royalty Corporation
                                    to 27 March 2002



Melbourn, UK and Toronto, Canada... Cambridge Antibody Technology Group plc
("CAT") (LSE: CAT; NASDAQ: CATG) in an announcement made on Monday 11 March 2002
commented on developments regarding its offer (the "Offer"), through its wholly
owned subsidiary 3982904 Canada Inc. (the "Offeror"), to acquire all of the
outstanding common shares of Drug Royalty Corporation Inc. ("DRC") (TSE:DRI) and
stated in its announcement that the Offer would remain open for acceptance until
9:00 pm (EST) today, 12 March 2002, which was the original expiry time for the
Offer. As described in greater detail below, the Offer has today been extended
to 9:00 pm (EST) on 27 March 2002.

In relation to the Offer, DRC has announced that the DRC Board has recommended
the proposed offer for DRC shares by Inwest Investment Ltd. ("Inwest") and
Inwest has announced that it has secured the support of major shareholders of
DRC by entering into a lock-up agreement pursuant to which shareholders
representing in aggregate approximately 13 million shares or 30% of DRC common
shares (on a fully diluted basis) have agreed to tender all of their shares to
the Inwest offer, subject to their right to tender to a higher offer or withdraw
their tendered shares under certain circumstances.



CAT has today made the following additional announcements and comments in
connection with its Offer:


        - By notice delivered to Computershare Trust Company of Canada, the
        depositary for the Offer, the Offeror has

        (a) extended the Offer to 9:00 pm (EST) on Wednesday, 27 March 2002; and

        (b) varied the Conditions to the Offer set out in section 2 of the Offer
        to Purchase by deleting the condition in paragraph (j) that requires
        that the board of directors of DRC shall not have withdrawn any
        recommendation made by it that DRC shareholders accept the Offer or
        issued a recommendation that DRC shareholders not accept the Offer.

        - As a result of the extension of CAT's Offer to 27 March 2002, the
        Offer will remain open to DRC shareholders until after the date by which
        Inwest has indicated it will mail its offer.

        - The share exchange ratio to be used in CAT's Offer was announced by
        CAT on Friday 8 March 2002 as being 0.095 such that each shareholder
        will be entitled to receive 0.095 CAT shares (or CAT ADSs, if the CAT
        ADS option was chosen) for each DRC share deposited to CAT's Offer. This
        share exchange ratio remains unchanged.

A formal notice of the extension, change and variation of CAT's Offer will be
mailed to DRC shareholders as soon as is practicable.

The contents of this announcement, which have been prepared by and are the sole
responsibility of CAT, have been approved solely for the purposes of section 21
of the Financial Services and Markets Act 2000 by Merrill Lynch International of
Merrill Lynch Financial Centre, 2 King Edward Street, London EC1A 1HQ / contact:
Richard Girling. Merrill Lynch International is acting as financial adviser to
CAT and for no-one else in connection with the Offer and will not be responsible
to anyone other than CAT for providing the protections offered to clients of
Merrill Lynch International or for providing advice in relation to the Offer.


                                -ENDS-




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