OXFORD BIOMEDICA

ANNOUNCES DETAILS OF ITS FIRST CLINICAL TRIAL IN CANCER

Breast Cancer to be Targeted with Novel Gene Therapy

Oxford BioMedica plc has announced today the details of its first clinical trial now planned to begin at the end of 1998, a year ahead of schedule.

The trial will evaluate the safety and preliminary efficacy of a novel gene therapy for breast cancer. It will involve injecting a retroviral vector carrying two genes directly into tumour nodules in late stage breast cancer patients. This will allow a number of entirely new approaches for managing cancer to be assessed. The outcome of the trial is set to have an impact on the treatment of a wide range of solid tumours.

Commenting on the news, Andrew Wood, Finance Director, said: "This rapid progress is a function of dedicated in-house research and development activities and the in-licensing of key technology. If successful these proposed trials could bring forward the time when the Company earns revenues."

A maximum of 20 patients will be involved and recruitment will begin in the fourth quarter of 1998. It is expected that the trial will be conducted at the Institute of Molecular Medicine in Oxford and initial results should be available mid 1999.

The primary aim of the trial will be to determine the effectiveness of the Company's proprietary genetic switch, the Hypoxia Response Element (HRE). This will be achieved by linking a biochemical marker gene to this switch and determining whether hypoxia control is effective in the human tumour. In model systems this switch is only activated in tumour cells and it is designed to ensure that the therapy is active just where it is needed. This is expected to reduce the often severe side effects observed with current anti-cancer therapies. The quantitative readout from this part of the trial, if successful, will enable the Company to accelerate the use of this technology in other solid tumour applications.

In addition, the Company intends to include one of its proprietary therapeutic genes in the trial. The therapeutic gene has been designed to specifically kill tumour cells and the effect is expected to be amplified in the tumour to ensure maximum cell destruction.

"We are very pleased to announce Oxford BioMedica's first clinical trial which will take place a full year ahead of schedule. This acceleration substantiates the Group's commitment to cancer therapy through the development of innovative strategies and collaborative in-licensing activities. This significant progress positions Oxford BioMedica's proprietary gene therapy technology as a competitive force in the field," stated Professor Alan Kingsman, Chief Executive.

Notes to Editors:

1. Oxford BioMedica, established in 1995, specialises in the development and application of gene-based therapeutics using advanced gene delivery technologies for the treatment of disease in the areas of: oncology, viral infection, neurobiology and genetic deficiency. Oxford BioMedica plc was floated on the UK Alternative Investment Market of the London Stock Exchange in December 1996.

2. Many current anti-cancer treatments are based on the (incorrect) assumption that a tumour is a uniform mass of rapidly dividing cells, each identical in all respects. In fact it has been demonstrated that 'micro-environments' exist within solid tumour masses where, in particular, oxygen levels are deficient, leading to a condition known as hypoxia. Hypoxia is rare in normal tissues but a common feature of all solid tumours. The Hypoxia Response Element (HRE) activates the production of anti-cancer therapeutics in hypoxic conditions.