Human Genome Sequence,etc

Proteome Sciences PLC
5 July 2000


Proteome Sciences plc


The announcement of the completion of the first draft sequencing of the human
genome last week was a major scientific landmark which has engendered
considerable media attention.

This, in turn, has stimulated activity in the pharmaceutical and biotechnology
industry, and investors on both sides of the Atlantic.

Whilst the first draft of the human genome sequence was an enormous
achievement, the vast amount of sequence data needs to be made intelligible
with maximum value added through function and patenting utility.

Genes (which are simple functional units of sequence data) control the body
through the proteins they produce.  By identifying the proteins that are
implicated in a particular disorder (through proteomics and functional
genomics) it is possible to see 'what is actually happening in a disease'. 
Identification of disease-related genes (genomics) only tells us what could
happen.

Consequently, the information generated by proteins is the most valuable data
as it not only allows accurate identification of the mechanisms and markers of
disease (diagnostics) but also provides real targets for drug discovery.  We
share the view that it is considerably easier and faster to go from
disease-associated protein to drug, than it is to go from basic sequence data
to drug.

With its two platform technologies in proteomics and modification of gene
expression (SMaRT(), Proteome Sciences is uniquely positioned to address
functional genomics.  These will provide vital tools to unlock the data from
the human genome, to simplify its navigation and to accelerate disease
discovery and treatment.

The recent announcement of our tests from human blood samples of high
sensitivity, specificity and predictive accuracy for stroke and CJD, have
demonstrated the commercial application of proteomics and we are actively
pursuing licensing and partnership programmes to exploit these, together with
our other research projects in diabetes/obesity, chronic heart disease and
rejection, TSE and cancer.

Intronn, our US subsidiary, continues to make good progress.  It has just
completed a mezzanine funding which raised $500,000, the initial part of a
$3-$4m funding, which is currently in process.  A shortlist has now been drawn
up for the position of Chief Executive Officer with some excellent candidates.
 In addition, a high profile Scientific Advisory Board and a Board, including
some eminent Non-Executive Directors, are being assembled.  Heads of Agreement
have been signed for a collaborative programme using SMaRT( and other
collaborative research and partnering opportunities are being actively
addressed.  The intellectual property and results from the research in gene
tagging and oligonucleotides, both of which have outstanding prospects, will
be spun out separately from SMaRT( into new entities for exploitation with
external partners/specialist biotechnology investors.  This process will
enable Proteome Sciences to maximise the value of its interest in Intronn and
prepare for a possible IPO in the US.

We would like to express our sincere thanks and appreciation to Professor
Keith Mansford who is standing down as a Non-Executive Director following this
Annual General Meeting, for the considerable contribution he has made to
Proteome Sciences, in particular as Chairman of the Scientific Advisory Board,
and we wish him well in his retirement.

With the funding secured from the recent Placing and Open Offer, Proteome
Sciences is now well placed to exploit the outstanding opportunities created
through the sequence data from the human genome through its two platform
technologies in proteomics and modification of gene expression.  These are key
tools to unlock functional genomics and the Directors look forward to
exploiting the considerable commercial opportunities that these provide.

Enquiries:-

Proteome Sciences plc, UK                   Tel:  [phone]

Christopher Pearce, Chief Executive Officer
e-mail:  [e-mail]

Alison Pearce, Business Development Manager              



Notes to Editors

1.       Proteome Sciences plc

Founded in 1984, Proteome Sciences plc, listed in London, is recognised as a
leader in proteomics technology.  The Company utilises the platform technology
of 2DE (two-dimensional gel electrophoresis) to search for novel protein
markers in body fluids and tissue, the presence of which can be used to
identify specific disease states, and  in the development of associated
diagnostic, prognostic and therapeutic applications.

Proteomics is used to identify the changing expression of proteins in disease
pathways. This can be used for diagnostic purposes, to monitor the effect of
therapeutic treatment at the protein level and to accelerate the speed and
efficacy of clinical trials.  Proteomics is thought to be a key contributor to
the development of functional genomics, which will play a major role in
bio-medical research and will make a significant impact in the development of
diagnostic and therapeutic products.

2.       Intronn LLC

Intronn LLC, based in North Carolina, USA, is a 50 per cent US subsidiary of
Proteome Sciences plc.  Intronn is developing a novel approach to gene therapy
and has filed patents for its Spliceosome Mediated RNA Trans-splicing
(SMaRT(tm)) Gene Therapy, which may be applied to a wide range of diseases. 
The technology allows virtually any mutated gene to be targeted and
reprogrammed to produce a new gene product useful in treating that particular
disease.  This has been successfully demonstrated to repair the genetic
mutations in the mRNA which is defective in cystic fibrosis.

3.       Cystic Fibrosis

Cystic fibrosis (CF) is a genetic disease which is caused by a defect in the
CTFR gene.  The diseases is characterised by chronic infection of the
respiratory system, which may lead to the loss of lung function and premature
death.  Cystic fibrosis is the most common fatal genetic disease in the USA
and Europe.  The typical life span for a patient with cystic fibrosis is
thirty years and it is estimated that the annual medical costs for each
patient range from $15,000 to $55,000.  Approximately 1 in 25 of the
population is a carrier of a faulty gene which can cause CF in their children.
 CF carriers are completely healthy because they have one normal gene as well
as one defective CF gene.

4.       Stroke

Stroke is the largest cause of serious disability in the UK with 350,000
people affected at any one time.  every year about 100,000 people suffer a
first stroke and 10,000 will be under retirement age.  A substantial
collection of sequential samples from acute stroke patients has been collected
over the last four years with potential marker candidates identified. 
Proteome Sciences has applied for patent protection for a diagnostic assay for
stroke from a blood sample which provides high sensitivity, specificity and
predictive accuracy.

5.       CJD

Considerable media attention continues to address the potential risk of
substantial numbers of possible CJD/nv CJD victims emerging in the future. 
Proteome Sciences has focused its attention on using highly sensitive
techniques for the early identification of the abnormal forms of the mutated
prion protein PrP and to try and identify such changes, preferably in an
accessible body fluid.  A patent application has been filed for a new method
of detection of CJD and other forms of TSE from a blood sample and the present
invention is for a test of high specificity, sensitivity and predictive
accuracy.

6.       Diabetes/Obesity

       More than 100 million people worldwide have non-insulin dependent
diabetes, including nearly 15 million Americans.  The World Health
Organisation is forecasting this to grow to 239 million by 2010.  It is the
most common cause of diabetes and is a serious disease resulting from the
body's inability to produce appropriate amounts of insulin, coupled with
insulin resistance.  Diabetes can lead to severe, debilitating and fatal
complications, including blindness, kidney disease, heart disease and
amputations.  It is the sixth leading cause of death by disease in the US and
costs an estimated $200bn in 1995.