Disposal

Billam PLC
21 July 2005


                                   Billam Plc

       Unquoted investee announces it is being acquired by quoted company

The directors of Billam Plc ('Billam') are pleased to report that investee
company Arakis Limited ('Arakis') announced that it has agreed terms to be
acquired for £106.5 million by Sosei Co Ltd ('Sosei' - 4565, Tokyo Stock
Exchange MOTHERS index), a leading Japanese biopharmaceutical company with
operations in Japan and the UK. The combined group will have a broad mid to
late-stage clinical and pre-clinical pipeline, products with near term revenue
generation potential, complementary product discovery capabilities and strengths
in Europe and Asia.

The offer contemplates the acquisition of 100% of the issued and to be issued
share capital of Arakis for a consideration of £106.5 million comprising £11.7
million in cash and 35,630 new Sosei shares. The offer will be open for
acceptance for a period of 21 days. Upon all relevant conditions being
satisfied, completion of the transaction will take place on 30 August 2005.

Billam acquired its shareholding in Arakis in March 2004 when Arakis bought
Billam investee company, Sirus Pharmaceutical Limited. The Arakis shareholding
is valued in Billam's accounts at £164,000. It is currently unclear exactly what
proportion of the total consideration payable for Arakis will be receivable by
Billam. This is because Billam is entitled to receive further deferred
consideration in respect of its sale of Sirus and it expects that this will be
established by the end of August. A further announcement will be made when full
details of the transaction are available and value of Billam's holding known.
The Board of Billam currently believes that the minimum receivable consideration
by Billam will be in the region of £500,000.

Angus Forrest, CEO of Billam said 'This transaction is a further indication of
the value perceived by third parties in Billam's investee companies. Also it
demonstrates that a significant uplift in value can be generated over relatively
a short period by a well run company exploiting technology.

For further details:

Angus Forrest, Billam Plc 020 7336 1300

Maxine Barnes, Bishopsgate Communications 020 7430 1600




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