Intention to raise funds

ReNeuron Group plc
05 April 2006



    ReNeuron announces intention to raise funds through international placing


Guildford, UK, 5 April 2006 - ReNeuron Group plc (AIM: RENE) announces that it
proposes to raise up to £8.5 million via a non pre-emptive placing of new
ordinary shares and American Depositary Shares (ADSs) (the 'Placing').  The
Company intends that institutional investors (including US and certain existing
institutional shareholders) will participate in the Placing. The proceeds of the
Placing will be used to fund the Company's lead ReN001 programme for stroke as
it progresses to the clinic, and also to fund the Company's other therapeutic
programmes based on recently announced progress made.

The Directors believe that the Placing will enable ReNeuron to widen its US
shareholder base and enhance the Company's profile in the US, where much of the
Company's activities concerning its lead ReN001 stroke programme are currently
focussed.  The Directors further believe that an enhanced profile in the US
market will provide greater liquidity in the Company's shares and serve to
increase the overall value of the Company in the medium to longer term, to the
benefit of all shareholders.  To this end, the Directors intend to consider
listing the Company's shares in the US in due course, subject to market
conditions, the ability of the Company to meet applicable listing requirements
and the Directors then judging that such a listing is in the best interests of
the Company and its shareholders as a whole.


ReNeuron has made significant progress with its stem cell programmes since its
Admission to the London AIM Market last August, as outlined below:

•   confirmation of the Company's pre-clinical development
    programme for its ReN001 stroke therapy, following the formal pre-IND1 
    meeting between the Company and the US Food and Drug Administration (FDA) in 
    July 2005.  Based on the results of this programme thus far, the Company 
    expects, in the second half of 2006, to file for approval to commence 
    initial clinical trials in the United States with ReN001;


•   repeat positive efficacy and dose-response pre-clinical data
    generated for ReN001, together with first results from late pre-clinical 
    safety studies indicating that the ReN001 stem cells do not form tumours 
    following implantation;

•   completion of the manufacturing scale-up of both master and working
    cell banks for ReN001 to Good Manufacturing Practice (GMP) standards.  These
    cell banks contain the material from which the Company expects all future
    clinical and in-market supplies for ReN001 will ultimately be drawn;

•   manufacturing contract entered into with Angel Biotechnology
    Holdings plc to scale up production of ReNeuron's ReN005 stem cell line for
    Huntington's disease.  This contract initially covers the production of a
    GMP-compliant master cell bank;

•   initial pre-clinical data for the Company's ReN004 candidate stem
    cell lines generated showing them to have attributes that may favour the
    reversal of the neurological deficits seen in Parkinson's disease; and

•   key functional data concerning the Company's second generation
    ReNcell hepatocyte (liver) cell lines generated, indicating their high 
    potential utility as a drug toxicology testing and screening tool.


Commenting on the Company's plans Michael Hunt, Chief Executive Officer of
ReNeuron, said:


'Since ReNeuron's flotation on AIM last summer, we have made steady progress in
both our therapeutic and ReNcell programmes. Although our current financial
resources will fund the Company's activities well into 2007, we believe that it
is appropriate to seek a judicious amount of further funding at this time.  This
will allow us to build quickly on recent progress across our therapeutic
programmes as well as furthering our investor profile in the US, which we regard
as an important factor in the Company's future success.'


ReNeuron is today calling an extraordinary general meeting (EGM) to propose a
Special Resolution permitting the Company to issue new ordinary shares and ADSs
for cash on a non pre-emptive basis.  The EGM will be held on 28 April 2006 at
2:30pm at the offices of Morrison & Foerster, 7th Floor, CityPoint, One
Ropemaker Street, London EC2Y 9AW.


As at today's date, no agreement has yet been entered into committing the
Company to issue, or any person to subscribe for shares as part of, the proposed
Placing. In particular no underwriting agreement has been entered into in
respect of the proposed Placing. In addition, the Placing is conditional upon
shareholder approval.

This press release shall not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of the ordinary shares or ADSs in
any jurisdiction in which such offer, solicitation or sale would be unlawful.
The ordinary shares and ADSs to be offered in the Placing have not been and will
not be registered under the U.S. Securities Act of 1933 and may not be offered
or sold in the United States absent registration or an applicable exemption from
registration requirements.


1 Investigational New Drug application


Enquiries:


ReNeuron
Michael Hunt, CEO                                      Tel: [phone]


Financial Dynamics
David Yates                                             Tel: [phone]
Sarah Macleod



Notes to Editors


ReNeuron is a leading, UK-based adult stem cell therapy business.  The Company
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-mycERTAM technology to generate genetically stable
neural stem cell lines.  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.


The Company's lead stem cell therapy, ReN001 for chronic stroke disability, is
in late pre-clinical development.  Subject to successful completion of
pre-clinical testing, the Company plans to file for approval to commence initial
clinical trials in stroke later this year, with trials commencing as soon as
possible thereafter.


The Company has also generated pre-clinical efficacy data with its ReN005 stem
cell therapy for Huntington's disease, a rare, genetic and fatal
neurodegenerative disorder which affects around 1 in 100,000 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 range of cell lines for use in drug discovery applications
in the pharmaceutical industry.


ReNeuron's shares are traded on the London AIM market under the symbol RENE.L,
and its warrants are traded under the symbol RENW.L.


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

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' or 'the Company' refer to ReNeuron Group plc and its
subsidiary undertakings.


This announcement is not for distribution in the United States, Canada, Japan or
Australia.


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