Success Milestone

Sareum Holdings PLC
30 June 2005


For immediate release                                               30 June 2005


                               SAREUM HOLDINGS PLC
                           ("Sareum" or "the Company")

                    SUCCESS MILESTONE REACHED IN COLLABORATION


Sareum Holdings plc (AIM: SAR), the structure-based drug discovery and services
business, is pleased to announce that it has reached a key success milestone in
its collaboration with an unnamed UK-based central nervous system (CNS) focused
drug discovery and development company ("the Client"), with whom it has a
collaborative agreement first announced on 15 December 2004. Under the
agreement, Sareum is providing protein structure determination services to
support the Client's research against diseases of the CNS. Sareum has now
successfully delivered key structural data and as a result of this the Company
is entitled to its first milestone payment under the agreement.

The collaboration is a key component of the Client's innovative research program
to discover novel drug candidates for the treatment of CNS diseases. Sareum's
expertise in protein expression and structure determination has lead to the
successful determination of the three-dimensional structure of the protein
target of the research program in complex with drug and potential drug compounds
that inhibit its action.

This information will assist the Client's scientists understand the precise
nature of the interactions between these compounds and the target protein,
thereby assisting the Client's scientists in the development of more effective
treatments of diseases of the central nervous system.

Sareum will continue to determine the structures of the Client's compounds in
complex with the target protein as part of Sareum's ongoing commitment to this
collaboration. Financial terms have not been disclosed.



Commenting on the agreement, Sareum's Chief Executive Officer, Dr Tim Mitchell,
said: "We are extremely pleased to be successfully delivering on this
collaboration. This demonstrates our ability to provide valuable information to
our collaborators and improve the ultimate success of our Client's drug
discovery programmes."



For further information:

Sareum Holdings                                                     01223 497700
Tim Mitchell, Chief Executive Officer

Buchanan Communications                                            020 7466 5000
Mark Court, Mary-Jane Johnson



About Sareum Holdings plc

Sareum Holdings plc is a specialist structure based drug discovery business
headquartered in Cambridge, UK. The Company was formed in August 2003 to
discover new drugs for the treatment of cancer and to provide a range of drug
discovery services to the pharmaceutical industry. Sareum's unique approach aims
to halve the time it takes to discover new drug candidates.

Structure-based drug discovery involves the determination of a disease causing
protein's three-dimensional structure. Once the structure is known, novel
chemical entities are designed to 'lock-in' to the protein with the aim of
reversing or arresting a disease's progression.

Sareum's approach to structure based drug discovery is to produce multiple
recombinant proteins primarily through a baculovirus expression system;
determine their structure using x-ray crystallography; and then use the
Company's template-molecule x-ray screening technology to identify new chemical
entities that interact with the target protein. Sareum then uses its
high-throughput medicinal chemistry platform to rapidly synthesise further
molecules and develop the most promising into potential drug candidates.

Sareum offers its accelerated drug discovery capabilities on a fee basis to the
pharmaceutical and biotechnology industries. Sareum intends to license out its
internally generated drug candidates at the Phase I or Phase II clinical trials
stage.

Sareum joined the AIM market of the London Stock Exchange in October 2004 and
trades under the symbol SAR.  For further information, please visit
www.sareum.co.uk



                      This information is provided by RNS
            The company news service from the London Stock Exchange