Harlow (UK), 19 June 2003....Argenta Discovery Ltd today announced its audited results for the year ended 31 March 2003.

Highlights

• Contract research revenues up 63% to £8.32 million

• Five new customers signed, nine contracts expanded or extended

• Investment in proprietary therapeutics up 120% to £1.35 million

• £2.0 million capital expenditure in the year on expanding the Company's state-of-the-art laboratory facilities by 13,300 sq ft

• Lease signed on a further 10,400 sq ft of laboratory space

• Cash and liquid resources steady at £3.0 million

• Retained loss £129,000

A growing and global customer base
Argenta's third year of trading saw significant revenue gains both from existing customers and new wins. Revenues from contract research rose 63% to £8.32 million.

During the year, fourteen new contracts were signed, five with new customers and the remainder being extensions and expansions of existing customer relationships. The year also saw the Company sign its first contract in Japan and start work on its largest ever contract aside from its original contract with Aventis. The Company's customer list now spans the pharmaceutical industry from major global pharma to small biotech across each of the world's main markets, i.e. United States, European Union and Japan. 

Increased investment in Proprietary Therapeutics
Supported by the solid growth in its service activities, Argenta increased investment in the Company's second business stream, Proprietary Therapeutics, by 120% to £1.35 million. Argenta's therapeutics business aims to use the Company's intelligent approaches to drug discovery to provide the pharmaceutical industry with novel, patented, validated candidates for progression into their pipelines. Current drug discovery efforts are focused on cancer and obesity/diabetes, and Argenta has established research associations with internationally renowned scientists from Imperial College School of Medicine on these projects. 

The internal programmes have progressed well with nanomolar activity achieved against an oncology target and the Company remains on track to meet its aim of licensing out its first Proprietary Therapeutics programme in financial year 2003/4.

People, facilities and capabilities
During the year, Argenta added further strength to its management and team, and also continued to expand is research facilities and science base. 

In September, Colin Knox joined the Company as Chief Financial Officer bringing with him a wealth of experience in European and global finance planning and management. Colin has since joined the Argenta Board.

In March, David Gee was appointed Chief Commercial Officer. David has extensive experience in managing commercial activities for all stages of drug research, development and commercialisation from concept, through R&D, launch and the sales and marketing of mature pharmaceutical products. The business development team was also strengthened in the US through the appointment of Dr Katherine Andrews-Cramer as Vice President Business Development of Argenta's US subsidiary Argenta Discovery Inc.

Overall, the Company's headcount grew to 93 at the year end with the average scientist having over 10 years' industrial experience. Over half of Argenta's scientific staff hold PhDs.

During the year, Argenta completed its fit out of a further 13,300 sq feet of laboratory space at its Spire Green, Harlow, UK facilities and signed a lease on another 10,400 sq feet. The expanded facilities are designed to support Argenta's philosophy of integration of its chemistry and biology expertise early on in the lead optimisation process.

Scientific capabilities were expanded in the year with the acquisition of an Acumen high content screening system and additional investments in high-throughput physicochemical measurement systems. The Company further enhanced its proprietary eADME capabilities.

Outlook
Despite tough market conditions, the Company looks forward with optimism to another year of continued revenue growth and a further expansion in terms of facilities, headcount and capabilities.

Commenting on the results, Dr Anthony Baxter, Chief Executive Officer of Argenta, said, "The fact that Argenta is able to grow and continue to win market share in the face of increasing and more diverse competition is testament to our proposition that for success in lead optimisation programmes; experience counts and that Argenta's values of precision, quality and value are shared by our current and potential future customers."

Copies of the Annual Report will shortly be available from The Secretary, Argenta Discovery Limited, 8/9 Spire Green Centre, Harlow CM19 5TR, United Kingdom and on the Company's web-site at www.argentadiscovery.com.

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About Argenta Discovery Ltd 
Argenta Discovery is an independent discovery company providing peer quality contract services in medicinal chemistry and biochemistry to pharmaceutical companies of all sizes. Argenta draws on its industry experienced scientists to deliver rapid hit finding capabilities together with the ability to convert and optimise hits and leads into validated, patentable chemical lead series and potential drug candidates. The company has previously worked with or is currently working with Aventis, Pharmagene, Millennium, Adolor, De Novo, GlaxoSmithKline, Lundbeck, Amedis and other undisclosed partners. Argenta also actively works on its own research projects and can source targets via a unique relationship with London's Imperial College School of Medicine (Europe's largest medical school). Patentable lead series resulting from in-house programmes will be available for sale or licence.

Argenta operates in new, state of the art laboratories in Harlow, UK, and is served by nearby London Stansted Airport. The company also has a US subsidiary, Argenta Discovery, Inc., and a commercial representation in Japan, reflecting its global client base. Its scientific skills include computer-aided drug design, medicinal, parallel and combinatorial chemistry, high throughput analytical chemistry, molecular biology, biochemical assay development, automated molecular and cellular screening and in vitro ADMET screening. 

For further information please see www.argentadiscovery.com  or email info@argentadiscovery.com

For further information, please contact:
Argenta Discovery Ltd 
David Gee 
Chief Commercial Officer
Tel: +44 (0) 1279 645645 david.gee@argentadiscovery.com  

Argenta Discovery Ltd 
Colin Knox 
Chief Financial Officer
Tel: +44 (0) 1279 645645 colin.knox@argentadiscovery.com  

HCC De Facto Group 
Dr Chris Gardner 
Associate Director 
Tel: +44 (0) 20 7496 3300  c.gardner@hccdefacto.com