USD5m Idenix Collaboration

Sareum Holdings PLC
09 February 2006


For immediate release                                          9th February 2006



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


       $5Million Research Collaboration with Idenix Pharmaceuticals, Inc.

Sareum Holdings plc (AIM: SAR), the specialist structure-based drug discovery
and services business, is pleased to announce that it has entered into a
collaborative research agreement with Idenix Pharmaceuticals, Inc (Idenix) to
discover novel hepatitis C compounds. Idenix is based in Cambridge, Mass, USA,
and is engaged in the discovery, development and commercialization of innovative
anti-viral therapeutics.

The aim of this collaboration, which is planned to run for approximately one
year, is to generate lead chemical series for development by Idenix into novel
drug therapies for hepatitis C virus infection. This is the second collaboration
between Sareum and Idenix; the first collaboration relating to HIV was announced
on 10 January 2006.

Sareum will provide multi-disciplinary research teams to determine the
three-dimensional structures of two of Idenix's hepatitis C disease protein
targets and then deploy its innovative Template Screening method in an effort to
identify novel compounds suitable for optimisation into lead drug candidates,
using its automated medicinal chemistry platform.

In return, Sareum will receive research fees and milestone payments up to a
value of approximately US$5 million, dependent on success, plus an additional
milestone payment if compounds from this collaboration advance to clinical
development.

Commenting on this announcement, Sareum's Chief Executive Officer, Dr Tim
Mitchell, said: "We are delighted to have signed this agreement. We are very
pleased that Idenix have chosen Sareum for an additional collaboration. This
provides further validation of our capabilities and demonstrates that we are a
partner of choice for structure-based lead generation and optimisation.  We see
this as a significant advancement for Sareum."

For further information please contact:

Sareum Holdings                                             [phone]
Tim Mitchell, Chief Executive Officer

Buchanan Communications                                     [phone]
Tim Anderson, Mary-Jane Johnson


About Sareum Holdings plc

Sareum Holdings plc is a structure-based drug discovery business headquartered
in Cambridge, UK. Sareum Limited 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.

A structure-based approach to drug discovery relies on knowledge of the
three-dimensional structure of the proteins that cause disease. Once the
structure is known, potential drugs are designed to 'lock-in' to the protein
with the aim of reversing or arresting a disease's progression. Knowledge of the
structure of the potential drugs and how they 'lock-in' to the protein permits
the best potential drug to be discovered. Determining structure is a complex
task and requires leading-edge equipment and experienced staff. Sareum's
approach to structure determination is to produce multiple recombinant proteins
primarily through a baculovirus expression system and to determine their
structure using x-ray crystallography.

When the structure is determined, the Company's innovative Template Screening
platform is used to identify novel chemical starting material designed to
interact with the target protein. Sareum then uses its high-throughput medicinal
chemistry platform to rapidly optimise these 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

About Idenix Pharmaceuticals, Inc

Idenix Pharmaceuticals, Inc. is a biopharmaceutical company engaged in the
discovery and development of drugs for the treatment of human viral and other
infectious diseases.  Idenix current focus is on the treatment of infections
caused by hepatitis B virus, hepatitis C virus and human immunodeficiency virus
(HIV).

About Hepatitis C

Hepatitis C is an infectious liver disease caused by the hepatitis C virus
(HCV). HCV infection becomes chronic in 75 to 85 percent(1) of individuals after
their initial infection. It is the most common chronic blood-borne infection in
the United States. Chronic HCV infection inflames the liver, causing progressive
liver damage that can lead to cirrhosis (liver scarring), hepatocellular
carcinoma (liver cancer), liver failure, and death. Hepatitis C related liver
failure is the most common indication for liver transplantation in the United
States. Chronic hepatitis C generally progresses slowly; evidence of liver
disease typically appears 10 to 40 years after initial infection. In its early
stages, chronic hepatitis C is often asymptomatic or causes non-specific
symptoms such as fatigue. For this reason, most people who carry chronic HCV
infection are unaware of their condition.

The Centers for Disease Control and Prevention estimates that 4 million
Americans have been infected with HCV, and 2.7 million of these carry chronic
HCV infections(2). Worldwide, the World Health Organization estimates that 170
million individuals carry chronic HCV infection, with 3 to 4 million new
infections each year(1).  Costs for providing care for patients with
HCV-associated liver disease in the United States are estimated to be more than
$750 million to several billion dollars annually, with societal costs at 5 times
that amount; this cost is likely to increase in proportion to the expanding
patient population (1),(4),(5). As the prevalence of severe liver disease 
attributable to hepatitis C rises, deaths due to complications from hepatitis C 
infection, currently 8,000 to 10,000 per year in the United States, are 
increasing and expected to triple by 2010(3).

References:

(1) World Health Organization
(2) Center for Disease Control
(3) Davis G. et al. Liver Transplantation 2003; Vol 9, No 4:331-338
(4) Zein NN. Clinical Significance of HCV genotypes (April 2004)
(5) Yoo et al., The Journal of Infectious Diseases, January 2005
(6) Strader et al., Hepatology. April 2004.


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            The company news service from the London Stock Exchange