Acquisition

ReNeuron Group plc
27 July 2007

           ReNeuron acquires business assets of AmCyte Inc. for $4m

Company gains clinically-tested cell encapsulation technology in diabetes and a
                      US research and development facility

Guildford, UK, 27 July 2007: ReNeuron Group plc (LSE: RENE.L) today announces
that it has entered into arrangements pursuant to which ReNeuron will acquire
the business assets of AmCyte Inc., a development stage cell therapy company
based in Santa Monica, California.

ReNeuron is acquiring AmCyte's proprietary cell encapsulation technology,
together with its US laboratories and staff.  ReNeuron intends to combine its
own well-characterised, scalable pancreatic cells with AmCyte's cell
encapsulation system, in order to produce a best-in-class islet cell therapy for
Type 1 diabetes patients.  The acquisition gives ReNeuron an operational
presence in California, one of the world's leading centres for both academic and
commercial stem cell research and development, and also enables the Company to
explore other therapeutic cell types where ReNeuron's cell expansion technology
and AmCyte's encapsulation system may deliver significant therapeutic benefit.

AmCyte's alginate-based cell encapsulation system, which is protected by an
extensive patent portfiolio, enables the delivery of therapeutic cells of
varying types and has been shown to maintain cell function in pre-clinical
transplantation studies.  AmCyte's primary focus is on the development of a cell
therapy treatment for Type 1 diabetes patients.  The company has previously
undertaken initial clinical safety studies in the US and Canada in a small
number of severely diabetic patients using encapsulated primary islets, with no
safety or rejection issues arising as a result of the treatment.

ReNeuron recently announced success with its own ReN002 diabetes programme in
generating insulin-producing islet cell clusters using its c-mycER cell
expansion technology.  The combination of ReNeuron's cells and AmCyte's
encapsulation technology has the potential to overcome the two principle
obstacles facing islet cell therapy for diabetes: the lack of suitable donated
pancreatic tissue from which to derive high quality insulin-producing islet
cells, and the immune rejection typically seen when transplanting raw islets
into diabetes patients.

The consideration of US$4 million for the acquisition will be satisfied by the
allotment and issue of 9,291,521 new ordinary 1p shares in ReNeuron Group plc
which will be placed with investors on completion.  In addition, ReNeuron is
raising a further US$3.1 million, before expenses, by the allotment and issue of
7,184,669 new ordinary 1p shares for cash.  The Directors intend that the net
proceeds of the cash placing be used to provide sufficient working capital for
the acquired business for at least the next year.  The 16,476,190 new ordinary
shares have been placed at a price of 21p per share.  It is expected that
completion of the acquisition and the admission to AIM of the new ordinary
shares will occur at 8:00 am on 1 August 2007.  Collins Stewart Europe Limited
acted as nominated adviser and broker to the Company.

Commenting on the acquisition, Michael Hunt, Chief Executive Officer of
ReNeuron, said:

'This transaction will substantially enhance ReNeuron's cell therapy
capabilities, and we are also pleased to have struck the deal during a period of
relative strength of sterling against the dollar.  As well as bringing us a
talented research and development team in the US, we believe that the
combination of ReNeuron's ReN002 islet cells and AmCyte's encapsulation
technology has the potential to place our business among the leaders in the
development of a safe and efficacious cell therapy for Type 1 diabetes 
patients.'


Enquiries:

ReNeuron
Michael Hunt, Chief Executive Officer                    Tel: [phone]
Dr John Sinden, Chief Scientific Officer

Financial Dynamics
Europe
David Yates                                             Tel: [phone]
Claire Rowell
US
Robert Stanislaro                                       Tel:  [phone]

Collins Stewart Europe LTD                              Tel:  [phone]
Tim Mickley


About diabetes

Type 1, or juvenile, insulin-dependent diabetes usually strikes in childhood and
leads to the progressive destruction of the insulin-secreting pancreatic islet
cells and impaired glucose metabolism.  This can result in complications such as
blindness, neuropathies, and kidney and liver problems.  There is no effective
cure.  Recombinant insulin injection is the principal current treatment,
together with diet management.  A small number of patients receive pancreas
transplants but donor organ supply is low and the immunosuppressant drug regimen
required is problematic.

Type 1 diabetes accounts for approximately 5-15% of all diagnosed cases of
diabetes.  There are estimated to be 5 million sufferers of Type 1 diabetes
worldwide.  The direct and indirect costs of Type 1 diabetes in the US are
estimated at US$5 billion per annum.

About AmCyte's cell encapsulation technology

AmCyte's proprietary encapsulation technology is based on a novel alginate
polymer and poly-L-lysine membrane configuration, in which the cells are encased
in immunoprotective capsules.  Protected by 16 issued patents, the technology
has been refined by extensive know-how in material selection and process
optimisation.  The capsule system allows small molecules and peptides produced
by the encapsulated cells to transfer out of the capsule; allows nutrients to
pass through the capsule to reach the cells; preserves cell function; is
formulated to be biocompatible without immune suppression of the patient, and
can be transplanted under a straightforward surgical procedure and be readily
retrieved.

About ReNeuron

ReNeuron is a leading, UK-based stem cell therapy business.  It is applying its
novel stem cell platform technologies in the development of ground-breaking stem
cell therapies to serve significant and unmet or poorly-met clinical needs.

ReNeuron has used its c-mycER technology to generate genetically stable stem
cell lines from non-embryonic tissue sources.  This technology platform has
multi-national patent protection and is fully regulated by means of a
chemically-induced safety switch.  Cell growth can therefore be completely
arrested prior to in vivo implantation.

ReNeuron has filed for approval to commence initial clinical studies in the US
with its lead ReN001 stem cell therapy for chronic stroke disability.  This
represents the world's first such filing concerning a neural stem cell treatment
for a major neurological disorder.  There are an estimated 50 million stroke
survivors worldwide, approximately one half of which are left with permanent
disabilities.  The annual health and social costs of caring for these patients
is estimated to be in excess of £5 billion in the UK and in excess of US$50
billion in the US.

ReNeuron has also generated pre-clinical efficacy data with its ReN005 stem cell
therapy for Huntington's disease, a genetic and fatal neurodegenerative disorder
that affects around 1 in 10,000 people.  This programme is in pre-clinical
development.  In addition to its stroke and Huntington's disease programmes,
ReNeuron is developing stem cell therapies for Parkinson's disease, Type 1
diabetes and diseases of the retina.

ReNeuron has also leveraged its stem cell technologies into non-therapeutic
areas - its ReNcell(R) range of cell lines for use in research and in drug
discovery applications in the pharmaceutical industry.  ReNeuron's ReNcell(R)CX
and ReNcell(R)VM neural cell lines are marketed worldwide under license by
Millipore Corporation.

ReNeuron's shares are traded on the London AIM market under the symbol RENE.L.

Further information on ReNeuron and its products can be found at
www.reneuron.com.

Data sources: Juvenile Diabetes Research Foundation; UK Stroke Association;
American Stroke Association.

This announcement contains forward-looking statements with respect to the
financial condition, results of operations and business achievements/performance
of ReNeuron and certain of the plans and objectives of management of ReNeuron
with respect thereto. These statements may generally, but not always, be
identified by the use of words such as 'should', 'expects', 'estimates',
'believes' or similar expressions. This announcement also contains
forward-looking statements attributed to certain third parties relating to their
estimates regarding the growth of markets and demand for products. By their
nature, forward-looking statements involve risk and uncertainty because they
reflect ReNeuron's current expectations and assumptions as to future events and
circumstances that may not prove accurate.  A number of factors could cause
ReNeuron's actual financial condition, results of operations and business
achievements/performance to differ materially from the estimates made or implied
in such forward-looking statements and, accordingly, reliance should not be
placed on such statements.

The terms 'ReNeuron', 'the Company' or 'the Group' used in this statement refer
to ReNeuron Group plc and/or its subsidiary undertakings, depending on the
context.




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