RNS Number:9772H
GeneMedix PLC
26 February 2003

                                 GENEMEDIX PLC

Binding Heads of Terms signed with Antibioticos for the development and
manufacture of a range of biopharmaceuticals

February 25th 2003 - Antibioticos Group and GeneMedix plc (LSE:GMX) today
announce the signing of binding Heads of Terms for a collaboration in which
Antibioticos Group of Milan, Italy, provides GeneMedix with exclusive access to
the cell lines and manufacturing methods for Interferon-beta, Granulocyte Colony
Stimulating Factor (G-CSF) and recombinant Growth Hormone (rhGH).

In addition, the parties have entered into a Joint Venture to construct a
bacterial fermentation facility, to be based in Spain, that will have the
capability to produce GeneMedix's portfolio of bulk microbial therapeutic
proteins, to international GMP standards. The global market for the three new
products exceeds 4 billion US dollars, and we have already started discussions
with a number of potential marketing partners for these proteins.

Antibioticos and GeneMedix have entered into a 75% / 25% Joint Venture and will
be constructing a state-of-the-art bacterial fermentation facility in Spain at a
total investment of Euro25m over the next two years. This will be used for the
contract manufacture of GeneMedix's bulk Interferon-alpha, as well as the
manufacture and supply of bulk G-CSF and rhGH. Plant design has been largely
completed and construction will commence in mid 2003.

GeneMedix will satisfy its 25% contribution to the total capital of the Joint
Venture, totalling Euro6.25m, by a issuing loans to the Joint Venture that are
payable in equal instalments from mid 2003 to early 2005. We shall also be
issuing loan notes, convertible into between 24 and 32 million Ordinary
GeneMedix shares in late 2003 and 2004, plus pay agreed royalties on sales.

The bulk protein will be supplied on an exclusive basis to GeneMedix, who will
be responsible for the secondary manufacture, regulatory submissions and
distribution of finished product, which it will do in conjunction with marketing
partners.

Paul Edwards, GeneMedix' Chief Executive Officer, commented,

"It has always been the Company's stated objective to acquire additional
proteins that would be complementary to our existing portfolio of products. We
believe that the collaboration with Antibioticos provides GeneMedix with a new
manufacturing base and additional key therapeutic proteins to our product
pipeline targeted at the European market. The addition of these products takes
our portfolio to 9 biogenerics. We believe that this will create real value for
our shareholders, through the continued strengthening of our operational base
and by providing the potential for further sustainable growth for the Company."


Carlo Frau, Antibioticos's Chief Executive Officer, commented,


"This deal represents our continued commitment to the production of higher value
pharmaceutical products. We believe that this collaboration with GeneMedix
offers us the opportunity to create real value in the field of generic
biopharmaceuticals."


26th February 2003


ENQUIRIES:

GeneMedix plc                                                 Tel: 01638 663 320
Paul Edwards, Chief Executive Officer

College Hill                                                  Tel: 020 7457 2020
Nicholas Nelson
Clare Warren



Notes

The Antibioticos Group is a worldwide market leader in the development and
production of intermediates for the pharmaceutical industry.

Interferon-beta is widely used for the treatment of the "relapsing, remitting"
form of Multiple Sclerosis. This type is characterized by alternating acute
episodes and partial or complete recovery. Interferon-beta is produced using
mammalian fermentation and market leaders include Biogen, Serono and Schering
AG. GeneMedix will use its expertise in process development of mammalian
cultures to produce an industrial scale process from the cell lines acquired.

Granulocyte Colony Stimulating Factor (G-CSF) is a potent stimulator of bone
marrow cells, especially those of neutrophil lineage, and may in future be
marketed alongside Neustim (GeneMedix's GM-CSF product). It is widely used in
chemotherapy induced neutropenia caused by cancer treatment.. The world-wide
market is currently dominated by Amgen (filgrastim) and Chugai (lenograstim).

Recombinant Human Growth Hormone (rhGH) is used primarily for the treatment of
short stature in children. Pharmacia, Lilly, Novo Nordisk and Serono are the
main players in this market. In addition, Serono have an approval in the USA,
under Orphan Drug status rules, for treatment of wasting in AIDs patients.

                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

AGRBELLLXLBXBBZ