Trading Update

Sareum Holdings PLC
05 January 2006


For immediate release                                            5 January 2006



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


                                 TRADING UPDATE


Sareum Holdings plc (AIM: SAR), the specialist structure-based drug discovery
and services business, is pleased to announce an update on trading for the six
month period ended 31 December 2005.  The Company expects to release its interim
results for the period before the end of February, 2006.

The Company is pleased to report that contracted sales, including pre-payments,
for the half year ended 31 December 2005 are ahead of the Board's expectations
at £620,000. Of this amount, the Company expects to recognise revenues of circa.
£350,000 during that period. Revenues for the year ended 30 June 2005 were
£332,335.

In late December 2005 Sareum entered into collaborations with several
international pharmaceutical and biotechnology companies, details of which will
be announced as soon as the necessary approvals are obtained.  These deals are
worth a minimum of £360,000, with a potential maximum value, depending on
results, in excess of £1,250,000 over the next 12 months.

For the second half of the year to 30 June 2006, the Board anticipates that
sales will exceed those of the first half and moves the company closer to its
goal of fully funding its current in-house research programs from its sales
revenues.

Dr Tim Mitchell, CEO of Sareum Holdings plc, said: "Sareum has enjoyed a
productive and successful period.  In addition to trading ahead of Board
expectations, the Company hopes to announce new collaborations and the
successful completion of ongoing projects during the remainder of our financial
year."


For further information please contact:


Sareum Holdings plc                                               01223 497700

Tim Mitchell, Chief Executive Officer
Grant Thornton                                                   020 7383 5100

Colin Aaronson

Buchanan Communications                                          020 7466 5000

Tim Anderson, Mark Court, Mary-Jane Johnson




Notes for Editors

About Sareum Holdings plc

Sareum Holdings plc is a specialist structure based drug discovery and services
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 its
innovative template-molecule x-ray screening technology to identify new chemical
entities designed to 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 provides its specialist drug discovery capabilities to partners in the
pharmaceutical and biotechnology industries. The Company aims to successfully
deliver: Programmes for complete gene-to-candidate structure-based discovery;
projects to accelerate or improve the productivity of specific activities; and
drug candidates for licensing 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