Shared diagnostics

The boards of

and

have reached agreement on the terms of a recommended all-share offer by Avacta for the entire issued and to-be-issued ordinary share capital of Curidium.

The combination of Heslington, York-based Avacta with Curidium is intended to create a stronger diagnostics business that is expected to deliver new technology and tests in point-of-care human diagnostics and personalised medicine.

The boards of Avacta and Curidium believe that the business of the enlarged group will benefit from the combination of Avacta's expertise in developing new technology products and services, and its ability to commercialise diagnostics intellectual property, with Curidium's expertise in the biology of disease and personalised medicine, underpinned by its existing cash resources.

Based upon a closing price of 2.25 pence per Avacta share on 8 January 2009, the recommended offer values each Curidium share at 32.6 pence and Curidium's existing share capital at approximately £6.18m.

The recommended offer will be conditional on, among other things, the approval of the Avacta shareholders and the approval of Curidium shareholders.