SOURCE: Cytomyx Holdings PLC

March 01, 2005 05:08 ET

CYTOMYX HOLDINGS PLC ANNOUNCES DISPOSAL OF CYTOCELL TECHNOLOGIES LIMITED

Cambridge, UK -- (MARKET WIRE) -- March 1, 2005 --

For immediate release 1 March 2005

                   CYTOMYX HOLDINGS PLC

                 ("Cytomyx" or "the Company")

          Disposal of Cytocell Technologies Limited
Cytomyx Holdings plc (AIM: CYX), the leading provider of drug discovery products and services, announces today that it has agreed to sell the business and assets of its wholly owned subsidiary Cytocell Technologies Limited ("Cytocell") to a consortium supporting some of Cytocell's existing management for an initial consideration of GBP605,000 payable in cash.

The disposal of Cytocell, which develops DNA diagnostic products, will allow Cytomyx to focus on its two chosen high-growth target markets in translational medicine, exploring the link between genes and disease through the use of human biomaterials, and in its ion channel screening technologies.

Under the terms of the sale agreement, the assets and liabilities of Cytocell will be transferred to the purchaser although Cytomyx will receive a royalty for four years on sales of certain products currently under development.

The proceeds from the sale of Cytocell, which achieved turnover of GBP883,000 in the year to 30 September 2004, are expected to balance its book debt in Cytomyx' accounts and generate cash for expansion of its core product offerings.

The financial results for Cytocell Technologies Limited for the year ended 30th September 2004 were as follows.

Turnover                                           GBP883,697
Gross profit                                       GBP663,801
Net loss for the financial year                    (GBP197,822)
Net liabilities                                    (GBP281,599)
Mike Kerins, Chief Executive of Cytomyx, commented: "Cytocell is a good business but it is no longer core to our strategy. Its disposal will allow us to invest further in our chosen high growth markets.

We see great opportunities for our business in the emerging field of translational medicine where pharmaceutical researchers are using human biomaterials to validate new drug targets and provide a clearer understanding of the effectiveness of experimental drugs in clinical trials. We are uniquely placed with our biorepository of human tissue samples and associated technologies such as tissue microarrays to become a preferred supplier to the pharmaceutical industry of high value solutions that better inform their decision-making in pharmaceutical development.

We are also continuing to invest in our world-leading ion channel technology platform. We are continuing the development of our range of ion channel cell lines and plan to extend our capabilities in this area through the introduction of an important new screening service in the coming months."

For further information, please contact:
Cytomyx Holdings plc                                 01223 508191
Mike Kerins, Chief Executive

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

The Wall Street Group                                +1 212 888 4848
Ron Stabiner
Notes for editors

About Cytomyx Holdings plc

Cytomyx Holdings plc is a rapidly growing life science company based in Cambridge, UK. Its three operating subsidiaries - Cytomyx Ltd, Clinomics Biosciences, Inc. and Cambridge BioScience Ltd - develop and market a wide range of products and services to the pharmaceutical and academic research markets. Cytomyx is listed on the AIM market of the London Stock Exchange. For more information please visit www.cytomyx-holdings.com


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