Release issued 14th December 2001

Pharmexa's 83,3% owned subsidiary Inoxell A/S and AstraZeneca today announced achievement of the first milestone in the evaluation of Inoxell's patented CellScreenä technology, to rapidly identify potential drug targets. In the coming 6 months Inoxell will double the number of employees working on the project, which will be reflected in the research funding provided by AstraZeneca. The year 2001 result of Inoxell and Pharmexa will be affected positively by approximately DKK 6 mill. In addition, the ongoing collaboration will lead to revenues in Inoxell of at least DKK 5 mill. in 2002.

Dr. Paul Leff, VP Enabling Science and Technology (Biology), of AstraZeneca says: "Progression into the next phase reflects positive development of our collaboration. The CellScreenä technology could prove to be an efficient and innovative way of finding and validating new drug targets, one of the most important bottlenecks in drug discovery today, and we look forward to the next phase of our evaluation." Dr. Peter Kristensen, CEO of Inoxell says: "Passing this milestone is an important event for Inoxell. The collaboration with AstraZeneca is progressing very well and we are very pleased with the interaction with AstraZeneca".

CellScreen is a versatile genetic technology for manipulating biological processes inside mammalian cells that allows for the rapid and cost effective identification of novel validated drug targets. Through the selection and capture of the specific peptide sequences affecting a disease relevant cellular behaviour, intracellular targets can be identified. Unique to the CellScreenä technology is the built-in validation that targets carry, as the method of identification is functional rather than indirect, in contrast to most genetically based drug target identification methods. Inoxell holds patents on the technology in Europe and Australia and has pending patent applications in the United States and other parts of the world.

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