OXFORD BIOMEDICA AND ARIUS RESEARCH EXTEND COLLABORATION ON NOVEL CANCER TARGETS

Oxford , UK – 16 29 October 2004 : Oxford BioMedica (LSE: OXB) and ARIUS Research Inc. (TSX-VE: ARI) announced today the first milestone and their decision to move into the next phase of their collaboration to discover and characterise novel cancer targets and downstream therapeutic products. Under the agreement, antigen targets and antibodies can be out-licensed to commercial partners or developed by one or both of the companies.

In the initial phase of the collaboration, which began on 25 July 2002 , 50 functional anti-cancer antibodies from the ARIUS library were used by Oxford BioMedica to mine for novel targets. The decision to extend the collaboration comes from the successful identification of three targets that offer opportunities in a range of cancer diseases. The new collaboration will focus on one that is over-expressed in gastrointestinal and other cancers and is related to cancer metastasis.

The success of the initial phase is due to synergies between the two companies. ARIUS’ FunctionFIRST™ discovery platform starts with human tumour cells and selects for antibodies with direct anti-cancer effects. By not starting from a known target, the ARIUS platform offers opportunities to discover novel targets or the unique spots on a target that are important in triggering cancer cell death. Oxford BioMedica has a number of proprietary technologies from its gene discovery and immunotherapy programmes and has both the technical skills to develop products and the business development experience to market them.

ARIUS' President and CSO, Dr. David Young said: "Our ongoing relationship with Oxford BioMedica has the potential to deliver significant value as we move to commercialise these discoveries. Oxford BioMedica has been an excellent partner and has made an important contribution to developing these library candidates.”

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Notes to editors:

1. Oxford BioMedica

Oxford BioMedica (LSE: OXB) is a biopharmaceutical company specialising in the development of novel gene-based therapeutics with a focus on the areas of oncology and neurotherapy. The Company was established in 1995 as a spin out from Oxford University , and is listed on the London Stock Exchange.

In addition to its technical expertise in gene delivery, Oxford BioMedica has in-house clinical, regulatory and manufacturing know-how. The development pipeline includes two novel anti-cancer products in clinical trials; two neurotherapy products in advanced preclinical development for Parkinson’s disease and retinopathy; and three further preclinical neurotherapy products. The Company is underpinned by an extensive preclinical and research portfolio and about 70 patent families, which represents one of the broadest patent estates in the field.

The Company has a staff of approx. 65 split between its main facilities in Oxford and its wholly owned subsidiary, BioMedica Inc, in San Diego , California . Oxford BioMedica has corporate collaborations with Wyeth, Intervet, Merck & Co, Amersham, Viragen, ARIUS Research and Kiadis.

Further information is available at www.oxfordbiomedica.co.uk.

2. ARIUS Research

ARIUS Research Inc. is a biotechnology company dedicated to personalizing cancer therapy through the discovery and development of novel anticancer monoclonal antibodies (MAbs).  Established in 1999, ARIUS has built a proprietary technology platform, FunctionFIRST™, that rapidly identifies powerful MAbs targeting a variety of cancer indications. This antibody generation engine has enabled ARIUS to assemble a growing pipeline of over 300 functional MAbs, which may be used for commercial collaborations, out-licensing or in-house development. ARIUS has ongoing licensing and research partnerships with key biotechnology and drug development companies that provide revenues and access to external technologies. The long-term vision of ARIUS is to deliver personalized therapy by matching multiple antibodies to the distinct antigenic characteristics of each patient's tumour cells thereby increasing efficacy and avoiding side effects. ARIUS is listed on the TSX Venture Exchange under the symbol “ARI”.

Further information is available at www.ariusresearch.com.