OXFORD BIOMEDICA PLC

As part of its strategy to maintain its leadership position in gene delivery technology, Oxford BioMedica announces the signing of an agreement with the Korean biotech company ViroMed Ltd (VML) to form a joint venture company called ViroTech Ltd. ViroTech will be the vehicle to develop the clinical trial programme and exploit the LentiVector^TM-based gene therapy products of Oxford BioMedica for the treatment of cancer and other diseases in the Far East.

Oxford BioMedica will contribute its lentiviral vector and enzyme/prodrug technology with VML contributing vector development technology, clinical trial facilities and business development for the Far East markets. The initial focus of the joint venture will be the clinical development of a range of gene therapy based cancer treatments with emphasis on those cancers that are particularly prevalent in the Far East. These include liver, prostate and other solid cancers.

VML was formed in November 1996 by Professor SunYoung Kim to commercialise gene therapy and diagnostic technology developed at the Institute of Molecular Biology and Genetics, Seoul National University. With strong links with the Korean and Japanese pharmaceutical industries, and the leading academic institutions, VML is ideally placed to orchestrate clinical development programmes for cancer treatments in the Pacific Rim and to develop commercial collaborations in the area.

In addition to the formation of the joint venture, Oxford BioMedica also announces the appointment of Edward Duer as its business development consultant for the Japanese market. Ed has worked in the pharmaceutical industry in Japan for more than 30 years. During that time he was directly responsible for licensing technology, pharmaceutical manufacture and quality control and distribution.

Commenting on the joint venture, Professor Alan Kingsman, Chief Executive of Oxford BioMedica said: "The joint venture will give us additional financial resource and manpower to progress the clinical trial programme for a number of our key products. These could now move into clinical trials much faster than if we continued to develop them on our own. With the quality of team that Professor Kim has built up at VML, the joint venture gives BioMedica the equivalent of 8-10 new team members. The appointment of Ed Duer underpins our strong commitment to be global in the commercialisation of our gene therapy products. The combination of local trials conducted through the joint venture and a local commercial development resource provided by Ed, will help us reach all the major established and emerging markets of the area."

Professor SunYoung Kim, technical founder of VML, added: "As a result of this collaboration, ViroTech has some of the most powerful gene delivery technology currently available. VML has already pioneered gene therapy trials in Korea and we expect to take ViroTech's combined technology into clinical trials in several key areas within the next three years."

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, Cardiovascular Disease and Genetic Deficiency. Oxford BioMedica plc was floated on the UK Alternative Investment Market of the London Stock Exchange in December 1996.