Interim Results

Cambridge Antibody Tech Group PLC
20 May 2002




02/CAT/20

Embargoed until

07.00 BST, 02.00 EST Monday 20 May 2002
For Further Information Contact:

Cambridge Antibody Technology           Weber Shandwick Square Mile (Europe)

Tel: [phone]               Tel: [phone]

Peter Chambre, CEO                      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 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH
                                      2002

Highlights

  • Abbott makes regulatory submissions in the US and Europe for marketing
    approval of D2E7 (adalimumab) as a treatment for rheumatoid arthritis.
  • Good Phase II trial twelve-month follow-up results of CAT-152
    (lerdelimumab) as post-operative treatment to prevent scarring after
    combined surgery to treat glaucoma and a cataract
  • CAT-192 awarded orphan drug status
  • Product co-development alliance signed with AMRAD
  • Three exclusive therapeutic licences granted: HGSI, Immunex
  • Peter Chambre appointed as new CEO
  • CAT buys out royalty obligations to DRC
  • Loss before tax for the six months ended 31 March 2002 of £10.1 million
  • Cash and liquid resources at 31 March 2002 of £147.3 million



Professor Peter Garland, CAT's Chairman, said, "In the first six months of the
year CAT has made further progress in a number of areas. The CAT-derived human
monoclonal antibodies in clinical development, both proprietary and
collaborator-funded, continue to progress. This, together with the signing of a
product co-development collaboration with Amrad and a licensing agreement with
Incyte, reflects the Company's commitment to building significant long-term
value in its world-leading pipeline of therapeutic antibodies."



CAMBRIDGE ANTIBODY TECHNOLOGY INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH
                                      2002

The last six months has been another period of progress for the Company with the
first CAT-derived human monoclonal therapeutic antibody having been submitted
for regulatory review by Abbott Laboratories. The product pipeline has continued
to grow, with a further six CAT-derived products undergoing clinical trials,
giving the Company a leading position in the discovery and development of human
therapeutic antibodies. We have also recently received encouraging data from
clinical trials of CAT-152.

In April, Peter Chambre joined CAT as CEO. His previous experience in senior
management roles at Celera Genomics and Bespak will enable him to lead the
transition of CAT to a product focused bio-pharmaceutical company.

Clinical development pipeline - CAT-funded/Co-funded

There is continuing progress with CAT's own product pipeline.

Enrolment continues in the European Phase II/III clinical trials of CAT-152
(lerdelimumab) a human anti-TGFb 2 monoclonal antibody being developed as a
treatment to prevent post-operative scarring in patients undergoing surgery for
glaucoma (primary trabeculectomy). Further trials in Europe and South Africa are
being planned, and it is anticipated that recruitment in these trials will start
in the fourth quarter of this financial year. In addition, we have initiated
discussions with the US Food & Drug Administration (FDA) regarding US clinical
trials.

In May 2002, encouraging twelve month follow-up results of a 56 patient Phase II
clinical trial of CAT-152 used in conjunction with phakotrabeculectomy (combined
surgery to treat glaucoma and cataract), were presented at the Association for
Research in Vision and Ophthalmology (ARVO) annual meeting. The results support
findings from the earlier clinical trial of CAT-152 in trabeculectomy, and
demonstrate that the benefits of CAT-152 treatment have become apparent with
longer term follow-up: patients treated with CAT-152 achieved lower intraocular
pressure (IOP) and fewer needed to return to topical medication.

CAT has also announced that, following receipt of a number of expressions of
initial interest from potential partners, it has commenced a process of
assessment and investigation of marketing strategies for CAT-152.

CAT-192, a human anti-TGFb 1 monoclonal antibody developed as a potential
treatment for a variety of scarring and fibrotic conditions, continues to
progress in trials. Genzyme, CAT's collaborator for CAT-192, is enrolling
patients into Phase I/II studies to evaluate CAT-192 as a potential therapy for
diffuse scleroderma. The product has been granted Orphan Drug Status in both the
US and Europe for scleroderma.

CAT-213, a human anti-eotaxin1 antibody with the potential to treat allergic
disorders, demonstrated a good safety profile in Phase I trials presented at the
British Pharmacological Society (BPS) meeting in December 2001. During the
period, CAT completed patient recruitment and treatment in a Phase I/II trial to
test CAT-213 as a treatment for allergic rhinitis. CAT anticipates announcing
preliminary results during the fourth quarter of this financial year.

Clinical development pipeline - collaborator funded

There are a number of programmes in which CAT's collaborator is responsible for
pre-clinical and clinical development and for which CAT receives milestones and
royalties on product sales.

D2E7 (adalimumab), the human monoclonal antibody that neutralises TNFa being
developed and marketed by Abbott for rheumatoid arthritis, has completed its
Phase III studies. In April 2002, Abbott simultaneously submitted a Biologics
Licence Application (BLA) to the US FDA and a Marketing Authorisation
Application (MAA) to the European Agency for the Evaluation of Medicinal
Products (EMEA). Some of the Phase III results (on which the regulatory
submissions are based) and further Phase II data will be presented at the
European League Against Rheumatology (EULAR) meeting in June 2002.

Abbott is also planning to develop and market D2E7 in Crohn's disease, psoriatic
arthritis and psoriasis. Trials in Crohn's disease are scheduled to begin by the
third quarter of this calendar year and psoriatic arthritis/psoriasis programmes
are also planned.

J695, a human anti-IL-12 monoclonal antibody being developed by Abbott and
Genetics Institute, also continues to progress in Phase II clinical trials. J695
is being studied as a treatment for various autoimmune diseases including
rheumatoid arthritis and Crohn's disease.

Human Genome Sciences Inc. (HGSI) continues Phase I clinical trials of
LymphoStat-B, an antibody raised against B-Lymphocyte Stimulator (BLyS)
and developed initially in collaboration with CAT. This trial is studying the
safety of LymphoStat-B in patients with systemic lupus erythematosus.

In January 2002 HGSI exercised an option for an exclusive licence on a human
monoclonal antibody to TRAIL-R1, a receptor that is expressed on a number of
solid tumours and tumours of hematopoietic origin, developed in collaboration
with HGSI. Pre-clinical data presented at the American Association for Cancer
Research (AACR) annual meeting in April 2002 show the anti-TRAIL-R1 antibody has
anti-tumour activity. Since period end, HGSI has been granted regulatory
clearance to commence Phase I clinical trials in the US in patients with
advanced cancer.

Research pipeline

There are currently four CAT-derived products in pre-clinical development,
either at CAT, or with collaborators. In addition there are ten projects in the
Company's discovery and development programme, both proprietary and collaborator
funded.

It was announced today that HGSI has exercised an option for an exclusive
licence to a human monoclonal antibody to TRAIL-R2, a receptor protein in the
tumour necrosis family and expressed on a number of solid tumours. The
anti-TRAIL-R2 antibody, developed in collaboration with HGSI has entered
pre-clinical development at HGSI and early pre-clinical data were presented at
the AACR in April 2002.

In January 2002, Immunex exercised one of its exclusive licence options granted
under an agreement signed in December 2000. This allows Immunex the right to
develop and commercialise human monoclonal antibodies specific for an
undisclosed disease target. CAT received a licence fee and will obtain milestone
and royalty payments on any antibody-based therapeutics commercialised by
Immunex.

In December 2001, CAT entered a product development collaboration with Amrad to
discover and develop jointly therapeutic antibodies that neutralise the receptor
for granulocyte-macrophage colony stimulating factor (GM-CSF Receptor), a
potential drug target in the development of rheumatoid arthritis. CAT and Amrad
are co-funding all development through to completion of Phase II studies, at
which point CAT will have primary responsibility for development and
commercialisation. Amrad has the option either to receive milestone and royalty
payments from CAT or to participate jointly with CAT in further development and
commercialisation.

In October 2001, CAT signed an agreement with Merck & Co., Inc. for the research
and development of products specific for a key target involved in disease
mediated by HIV. Merck is providing proprietary technology and experience in HIV
biology and CAT is providing its proprietary human phage antibody libraries.
Merck receives exclusive rights to prophylactic and therapeutic products
developed in collaboration with CAT against the specified viral target. CAT has
received an upfront technology access fee from Merck, and is entitled to receive
clinical development milestones and royalties on the sale of products that
result from the alliance.

In December 2001 CAT entered a licensing agreement with Incyte, providing CAT
with access to Incyte's LifeSeq(R) Gold database and to high quality,
sequence-verified human cDNA clones and rights to use this information for
therapeutic antibody product development including a number of exclusive
therapeutic antibody license options. This agreement, together with that signed
with HGSI in March 2000, provides CAT with a source of potential drug targets.

Intellectual property

CAT has major patents granted in the key territories of the world. During the
period this estate has been extended with a divisional of the Company's
McCafferty patent granted by the European Patent Office in January 2002.

In March 2002, the District Court in Washington DC issued its formal ruling that
MorphoSys does not infringe CAT's Griffiths patent (US 5,885,793). The decision
was based on the method by which the MorphoSys' library is derived: CAT has
filed a notice of appeal to the Federal Circuit on this decision. It is
anticipated that the hearing will take place in the first half of 2003.

May 2003 has been proposed as the date for the legal actions in which CAT claims
that MorphoSys infringes its Winter II patent and two of the Winter/Lerner/Huse
patents. In the legal action brought by MorphoSys in respect of CAT's US
McCafferty patent, a date for the preliminary 'Markman Hearing' has been set for
July 2002. The date for the Trial has been set for February 2003.

Drug Royalty Corporation

On 2 May 2002, CAT bought out its royalty obligations to Drug Royalty
Corporation of Canada (DRC) for C$14 million (£6.2 million), satisfied by the
issue to DRC of 463,818 CAT shares (representing approximately 1.3% of CAT's
issued share capital). This means that CAT will no longer pay DRC royalties on
revenues. The buy-back right was negotiated at the time of CAT's offer to
acquire the whole of DRC.

In January, CAT announced a recommended offer for the whole of DRC at C$3.00 per
DRC share, payable in CAT shares. In March, a competing all cash offer was made
by Inwest Investments Ltd of Canada (Inwest), equating to C$3.05 per DRC share;
the DRC board shifted its recommendation to this offer in preference to the CAT
offer. In April the Inwest offer for DRC succeeded. This triggered CAT's right
to buy back its royalty interest, as described above.

Operations

CAT's plans to consolidate its operations on one site are on schedule, with
remaining employees due to relocate to a new building at Granta Park at the end
of this year. The Company employed 269 staff on 31 March 2002 and CAT plans to
increase staff numbers to approximately 300 by the end of the financial year.



Financial results

CAT made a loss after taxation for the six months ended 31 March 2002 of £9.1
million (six months ended 31 March 2001 (H1) £4.2 million (restated); six months
ended 30 September 2001 (H2) £7.6 million.) Net cash outflow before financing
for the period was £10.7 million (H1 - £3.3 million outflow; H2 - £11.0 million
outflow). Cash and liquid resources at 31 March 2002 amounted to £147.3 million
(31 March 2001 £168.0 million; 30 September 2001 £156.7 million).

Turnover in the period was £4.9 million (H1- £3.4m (as restated); H2 - £3.7
million).

This included a milestone payment from HGSI with the initiation of LymphoStat-B
Phase I clinical trials. Turnover included £0.9 million of revenues (principally
licence fees) released which have previously been deferred under the Group's
policy for revenue recognition. Revenue was also generated under ongoing
collaborations for research and development services with HGSI, Wyeth-Ayerst,
Pharmacia and Merck.

Recurring revenues, representing contract research revenues and income from
licensing arrangements entered into as at 30 September 2001, were £3.5 million
in the current period.

Operating costs for the period amounted to £18.3 million (H1 - £12.3 million; H2
- £15.5 million). External development costs have increased in line with
increased activity on CAT's own clinical trials, particularly CAT-152, and on
partnered programmes. Staff and infrastructure costs have risen with the growth
in staff numbers, from 247 at 30 September 2001 to 269 at the current period
end, and the additional premises leased at Granta Park. Spend in the period on
patent litigation, including patent oppositions, was £0.5 million compared to
£1.2 million for the six months ended 31 March 2001. These costs are expected to
rise significantly as CAT prepares for the MorphoSys trial set for early 2003.
General and administration expenses include £1.2 million of costs incurred in
the six months ended 31 March 2002 relating to the offer for DRC (comparative
periods - none).

During the period the Group accrued interest receivable on its cash deposits of
£3.4 million (H1 - £4.9 million; H2 - £4.4 million) reflecting the reduced level
of cash and liquid resources held in interest bearing securities and the recent
lower interest rates available.

During the period, the Group recognised a tax credit of £0.9 million following
submission of a claim based on research and development expenditure in a prior
accounting period. Additions to tangible fixed assests for the period were £2.4
million (H1 - £1.6 million; H2 - £2.2 million), principally due to the purchase
of a significant amount of laboratory equipment. In addition, costs associated
with the construction of CAT's new premises at Granta Park were incurred during
the period. These costs will increase substantially as the majority of the fit
out costs for the new premises will be incurred in the second half of the
financial year.

The addition to intangible fixed assets represents the Incyte LifeSeq(R) licence
which was capitalised as an intangible asset in the first quarter and for which
the first payment has now been made.

Outlook

Operating costs are expected to increase in the second half of the year as the
CAT-152 clinical trials develop further and staff numbers head towards 300,
reflecting further increases in activity levels across all areas of the Company.

Capital expenditure for the year is expected to approach £10.0 million excluding
the purchase of the Incyte LifeSeq(R) licence.

A significant increase in cash outflow is expected in the second half of the
year as external research and development expenditure and staff costs continue
to build, and capital expenditure, particularly expenditure on the new
facilities, increases. Taking into account additional expenditure incurred on
the acquisition of the Incyte licence and the DRC bid the average monthly net
cash burn for the year as a whole is expected to be at the upper end of the
range of £2.5 million to £3.0 million per month previously indicated.

Auditors

Following a competitive tendering process, the Board has appointed Deloitte &
Touche as the Group's auditors following the resignation of Arthur Andersen.
Shareholders will have the opportunity to vote on the appointment of Deloitte &
Touche at the next Annual General Meeting. The Board of Directors is fully
committed to ensuring that the Group's auditors maintain complete independence
and objectivity.








CONSOLIDATED PROFIT AND LOSS ACCOUNT
(Unaudited)
                                    US$ Proforma      Six               Six      Year ended 30 September 2001
                                                   months            months   
                                      six months ended 31          ended 31         
                                        ended 31    March        March 2001
                                      March 2002     2002          restated
                                           $'000    £'000             £'000                             £'000
Turnover                                   6,914    4,852             3,401                             7,121
Direct costs                                (91)     (64)             (233)                             (351)
Gross profit                               6,823    4,788             3,168                             6,770
Research and development expenses       (19,611) (13,762)           (9,216)                          (21,393)
General and administration               (6,438)  (4,518)           (3,034)                           (6,443)
expenses
Operating loss                          (19,226) (13,492)           (9,082)                          (21,066)
Interest receivable (net)                  4,879    3,424             4,931                             9,295
Loss on ordinary activities before      (14,347) (10,068)           (4,151)                          (11,771)
taxation                                                                        
Taxation on loss on ordinary               1,311      920                 -                                 -
activities
Loss for the financial period           (13,036)  (9,148)           (4,151)                          (11,771)
Loss per share - basic and diluted                  25.7p             11.8p                             33.3p
(pence)


CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

(Unaudited)
                                             US$      Six  Six months ended      Year ended 30 September 2001
                                                   months     31 March 2001
                                        Proforma ended 31
                                                    March
                                      six months     2002
                                        ended 31
                                      March 2002
                                           $'000    £'000             £'000                             £'000
Loss for the financial period           (13,036)  (9,148)           (4,151)                          (11,771)
(Loss) / profit on foreign                  (87)     (61)               (3)                                 1
exchange translation
Total recognised loss                   (13,123)  (9,209)           (4,154)                          (11,770)
Prior year adjustment                                                                                 (6,594)
Total recognised losses since last                                                                   (18,364)
annual report and financial
statements







This financial information has been prepared in accordance with UK GAAP. The
dollar translations are solely for the convenience of the reader.


CONSOLIDATED BALANCE SHEET
(Unaudited)
                                              US$   As at 31    As at 31    As at 30
                                                  March 2002  March 2001   September
                                         Proforma               restated        2001

                                         as at 31
                                       March 2002
                                            $'000      £'000       £'000       £'000
Fixed Assets
Intangible assets                          12,054      8,459       4,261       4,075
Tangible fixed assets                      10,814      7,589       5,651       6,642
Investments                                   306        215           -           -
                                           23,174     16,263       9,912      10,717
Current Assets
Debtors                                     8,479      5,950       4,128       4,940
Investment in liquid resources            205,516    144,222     167,246     156,228
Cash at bank and in hand                    4,416      3,099         779         585
                                          218,411    153,271     172,153     161,753
Creditors
Amounts falling due within one year      (18,965)   (13,309)     (9,247)     (8,335)
Net current assets                        199,446    139,962     162,906     153,418
Total assets less current liabilities     222,620    156,225     172,818     164,135
Creditors
Amounts falling due after more than      (11,096)    (7,787)     (9,488)     (8,085)
one year
Net Assets                                211,524    148,438     163,330     156,050
Capital and Reserves
Called-up share capital                     5,090      3,572       3,538       3,546
Share premium account                     279,812    196,359     194,689     195,017
Other reserve                              19,168     13,451      13,451      13,451
Profit and loss account                  (92,546)   (64,944)    (48,348)    (55,964)
Shareholders' funds - all equity          211,524    148,438     163,330     156,050

This financial information has been prepared in accordance with UK GAAP. The
dollar translations are solely for the convenience of the reader.


CONSOLIDATED CASH FLOW STATEMENT
(Unaudited)
                                                US$      Six      Six months      Year
                                                      months  ended 31 March  ended 30
                                         Six months ended 31            2001 September
                                     ended 31 March    March                      2001
                                               2002     2002        restated
                                              $'000    £'000           £'000     £'000
Net cash outflow from operations           (15,484) (10,866)         (5,937)  (19,150)
Returns on investments and servicing of finance
Interest received                             5,815    4,081           4,282     8,322
Taxation                                          -        -               -         -
Capital expenditure and financial investment
Purchase of fixed assets                    (5,603)  (3,932)         (1,647)   (3,485)
Sale of fixed assets                              -        -               2         4
                                            (5,603)  (3,932)         (1,645)   (3,481)
Net cash outflow before management         (15,272) (10,717)         (3,300)  (14,309)
of liquid resources and financing
Management of liquid resources               17,109   12,006        (10,744)       274
Financing
Issue of ordinary shares                      1,949    1,368          15,044    15,380
Increase in cash                              3,786    2,657           1,000     1,345







This financial information has been prepared in accordance with UK GAAP. The
dollar translations are solely for the convenience of the reader.



Basis of preparation

These interim financial statements have been prepared in accordance with the
policies set out in the statutory financial statements for the year ended 30
September 2001 with the exception that the Company has adopted FRS19 "Deferred
Tax" in order to comply with the latest UK accounting standards. This has no
effect on either the current period or prior periods. The results for the six
months ended 31 March 2001 have been restated to take account of the Company's
revised accounting policy for the recognition of turnover as explained in the
note below.

These interim financial statements do not constitute statutory financial
statements within the meaning of section 240 of the Companies Act 1985. Results
for the six-month periods ended 31 March 2002 and 31 March 2001 have not been
audited. The results for the year ended 30 September 2001 have been extracted
from the statutory financial statements, which have been filed with the
Registrar of Companies and upon which the auditors reported without
qualification.

Convenience translation

The consolidated financial statements are presented in pounds sterling. The
consolidated financial statements as of and for the period ended 31 March 2002
are also presented in United States Dollars as proforma financial information.
The Dollar amounts are presented solely for the convenience of the reader and
have been calculated using an exchange rate of £1: US$1.425, the noon buying
rate as of 29 March 2002. No representation is made that the amounts could have
been or could be converted into United States Dollars at this or any other rate.

Prior Year Adjustment

The Group policy for recognising turnover was changed during the year ended 30
September 2001 in accordance with emerging best practise in the UK. Under the
revised policy, where contractual performance is incomplete despite the Group
having received non-refundable payments, revenue is only recognised to the
extent that the Group has performed its obligations and such performance has
resulted in benefits accruing to the customer.

The effects of the change in this accounting policy for the six months ended 31
March 2001 are summarised below:
                                              Six months
                                                ended 31
                                              March 2001
                                                   £'000
Consolidated Profit and Loss Account
Turnover:
Revised accounting policy                          3,401
Previous accounting policy                         6,628
Increase in loss                                 (3,227)
Consolidated Balance Sheet
Increase in creditors:
Amounts falling due within one year -            (1,611)
deferred income
Amounts falling due after more than one          (8,210)
year - deferred income
Decrease in net assets                           (9,821)

DRC offer costs

General and administration expenses include £1.2 million of costs incurred in
the six months ended 31 March 2002 relating to the offer for DRC (comparative
periods - none).



Loss per share

The loss per ordinary share and fully diluted loss per share are equal because
the Group is sustaining losses. The calculation is based on the following, for
the six months ended 31 March 2002, the six months ended 31 March 2001 and the
year ended 30 September 2001 respectively. Losses of £9,148,000, £4,151,000 (as
restated), and £11,771,000. Weighted average number of shares in issue of
35,533,453, 35,209,153 and 35,313,260. The company has 35,724,656 ordinary
shares in issue and a total of 1,468,499 ordinary shares under option as of 31
March 2002.





Reconcilation of operating loss to operating cash outflow

                                             US$      Six              Six       Year 
                                                   months           months   ended 30        
                                        Proforma ended 31         ended 31  September
                                                    March       March 2001       2001
                                      six months     2002         restated
                                        ended 31
                                      March 2002
                                           $'000    £'000            £'000      £'000
Operating loss                          (19,226) (13,492)          (9,082)   (21,066)
Depreciation in the period                 2,036    1,429            1,001      2,146
Amortisation of intangible assets            507      356              187        373
Loss on disposal of fixed assets               -        -                1          1
Increase in debtors                      (1,064)    (747)             (27)      (515)
Increase / (decrease) in creditors         2,263    1,588            1,983       (89)
Net cash outflow from operations        (15,484) (10,866)          (5,937)   (19,150)






    INDEPENDENT REVIEW REPORT TO Cambridge Antibody Technology Group plc

    Introduction

    We have been instructed by the Company to review the financial information
    for the six months ended 31 March 2002 which comprises the consolidated
    profit and loss account, the consolidated statement of total recognised
    gains and losses, the consolidated balance sheet, the consolidated cash flow
    statement and related notes but excludes the proforma information. We have
    read the other information contained in the interim report and considered
    whether it contains any apparent misstatements or material inconsistencies
    with the financial information.

    Directors' responsibilities

    The interim report, including the financial information contained therein,
    is the responsibility of, and has been approved by, the directors. The
    directors are responsible for preparing the interim report in accordance
    with the Listing Rules of the Financial Services Authority which require
    that the accounting policies and presentation applied to the interim figures
    should be consistent with those applied in preparing the preceding annual
    accounts except where any changes, and the reasons for them, are disclosed.

    Review work performed

    We conducted our review in accordance with guidance contained in Bulletin
    1999/4 issued by the Auditing Practices Board for use in the United Kingdom.
    A review consists principally of making enquiries of group management and
    applying analytical procedures to the financial information and underlying
    financial data and, based thereon, assessing whether the accounting policies
    and presentation have been consistently applied unless otherwise disclosed.
    A review excludes audit procedures such as tests of controls and
    verification of assets, liabilities and transactions. It is substantially
    less in scope than an audit performed in accordance with United Kingdom
    auditing standards and therefore provides a lower level of assurance than an
    audit. Accordingly we do not express an audit opinion on the financial
    information.

    Review conclusion

    On the basis of our review we are not aware of any material modifications
    that should be made to the financial information as presented for the six
    months ended 31 March 2002.

Deloitte & Touche


    Chartered Accountants

    Leda House

    Station Road

    Cambridge

    CB1 2RN

    20 May 2002



Notes to Editors:

Cambridge Antibody Technology (CAT)

  • CAT is a UK-based biotechnology company using its proprietary technologies
    and capabilities in human monoclonal antibodies for drug discovery and drug
    development. Based near Cambridge, England, CAT currently employs around 270
    people.
  • CAT is a leader in the discovery and development of human therapeutic
    antibodies and has an advanced proprietary platform technology for rapidly
    isolating human monoclonal antibodies using phage display systems. CAT has
    extensive phage antibody libraries, currently incorporating more than 100
    billion distinct antibodies. These libraries form the basis for the
    Company's strategy to develop a portfolio of antibody-based drugs.
  • Six CAT-derived human therapeutic antibodies are at various stages of
    clinical trials, with a seventh CAT-derived antibody, D2E7, having been
    submitted for regulatory review by Abbott (responsible for development and
    marketing) following the completion of Phase III trials.
  • CAT has alliances with a large number of pharmaceutical and biotechnology
    companies to discover, develop and commercialise human monoclonal
    antibody-based products. CAT has also licensed its proprietary human phage
    antibody libraries to several companies for target validation and drug
    discovery. CAT's collaborators include: Abbott , Amrad, Elan, Genzyme, Human
    Genome Sciences, Immunex, Merck & Co, Pharmacia and Wyeth-Ayerst.
  • CAT is listed on the London Stock Exchange and on NASDAQ since June 2001.
    CAT raised £41m in its IPO in March 1997 and £93m in a secondary offering in
    March 2000.





Application of the Safe Harbor of the Private Securities Litigation Reform Act
of 1995: This press release contains statements about Cambridge Antibody
Technology Group plc ("CAT") that are forward looking statements. All statements
other than statements of historical facts included in this press release may be
forward looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934.

These forward looking statements are based on numerous assumptions regarding
CAT's present and future business strategies and the environment in which CAT
will operate in the future. Certain factors that could cause CAT's actual
results, performance or achievements to differ materially from those in the
forward looking statements include: market conditions, CAT's ability to enter
into and maintain collaborative arrangements, success of product candidates in
clinical trials, regulatory developments and competition.



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