Cellexus Biosystems closes private rounds of funding, raising £400,000.

19th September 2006: Cellexus Biosystems PLC (CBIO: Ofex) of Cambridgeshire, UK, has announced that it has closed two private rounds of funding, raising just under £400,000.

The Company announced on the 21st August 2006, that it was intending to raise funds to accelerate its development, through a private placing (Private Placing Memorandum III) at 85p per share, which was opened for subscription on the 4th September 2006. The Company reports that the placing was significantly oversubscribed and was closed for further applications the same day. Company executives indicated that many of the existing shareholders from the earlier funding round (Information Memorandum II) have re-invested in further stock in this placing. These shareholders were joined by a number of new investors.

Separately, the Company announced that it had accepted an offer from an investor who specialises in the technology sector, to purchase £102,000 of its stock, at a price of 85p per share.

Kevin Auton, CEO of Cellexus Biosystems said: “We are very pleased with the response to our private placing and greatly appreciate the continued confidence shown in our company and the enthusiastic support of our existing shareholders. Nearly half of the funds raised in the placing were invested by existing shareholders who took part in the IM2 funding round. We believe their continued support, at a price significantly above their initial investment, reflects their recognition that the financial, developmental and marketing milestones laid down in IM2 have been achieved or surpassed. We are also delighted to welcome a number of new stakeholders in Cellexus Biosystems.”

“This additional funding allows us to dramatically accelerate our marketing operations, as we bring our products to the attention of researchers in the biopharmaceutical industry throughout the World. We intend to invest a proportion of these funds into the establishment of a mammalian cell culture laboratory to support continued product development and to build the infrastructure needed to support these activities.”

Cellexus Biosystems recently announced a demanding programme of exhibitions around the World, supported in part by UKTI. Even before this marketing push Cellexus Biosystems has already commenced selling and shipping products to end customers, well ahead of its projected target.

To date, Cellexus Biosystems has raised £900,000 since incorporation in December 2005 and was listed on the PLUS-quoted markets in May 2006. The Company has cash reserves of just under £700,000, sufficient to take it through to significant revenues and profitability.

The Directors accept responsibility for the contents of this announcement.

ENDS

About Cellexus Biosystems PLC

Cellexus Biosystems has developed a range of value-added disposables to help researchers in the biopharmaceutical industry and academia develop new biopharmaceutical products from cell lines. Biopharmaceuticals are the new breed of medicines, generated by culturing cells in bioreactors. These medicines are often proteins, such as antibodies, vaccines and the potential offered by stem cell research. Sales of biopharmaceuticals reached US$60 billion in 2005 and are growing at 20% per annum.

In an unusual step for an early stage company, Cellexus Biosystems was admitted onto the Plus Markets Exchange (www.ofex.com) on the 3rd of May 2006 (stock symbol: CBIO), just six months after being incorporated as a public limited company (PLC). A listing on the exchange means that Cellexus Biosystems can now also raise funds from those private investors who manage their own Self Invested Personal Pension Scheme (SIPPS) as a result of the changes in the regulations, in addition to accepting investment from High Net Worth Individuals (business angels). This gives the Company access to sources of capital that are not available to other early stage companies, who must compete for investment from a small number of venture capitalists.

The Company has already developed a family of products. Three products have been developed all based around the core technology - the CellexusBagTM – and are marketed under the name: CellMaker LiteTM. These products potentially offer significant technological improvements for cell culture and cell growth in the developing disposables market.

Unlike competitive products, the CellexusBag products do not need to be stirred, shaken, rocked or rolled, which means the equipment used to manage the cell culture process is very simple and inexpensive. A patent application protecting the Company’s intellectual property was filed in December 2005.


Cellexus Biosystems PLC:

Dr Kevin Auton, CEO

New Tel: +44 1354 657 407

New Fax: +44 870 135 5536

New address: Cellexus Biosystems PLC Hereward Innovation Centre,

Hostmoor Avenue,

March, Cambridgeshire,

PE15 0AX, United Kingdom

Email: kevin.auton@cellexusbiosystems.com

www.cellexusbiosystems.com 


CORPORATE ADVISER:

JM Finn & Co.

Salisbury House, London Wall, London EC2M 5TA

Mr Clive Carver

Tel: +44 207 628 9688

Email: clive.carver@jmfinn.com 

www.jmfinn.com


MEDIA CONTACT FOR CELLEXUS BIOSYSTEMS PLC

Not This Limited

Tel: +44 1480 352 821

Email: info@notthislimited.co.uk

www.notthislimited.co.uk