BTG ANNOUNCES NOVEL INSULIN THERAPY FOR TREATMENT OF DIABETES.

BTG (LSE:BGC), West Conshohocken, Pa., a global technology commercialization company, has announced a potential new treatment for type I and II diabetes that delivers insulin directly to the liver without causing a build-up of insulin in peripheral tissues -a major cause of side effects with current insulin therapies.

Developed at Kings' College London, the hepatoselective insulin is designed to be selectively absorbed by the liver. Through careful control of its molecular size, the insulin does not get absorbed from the bloodstream into peripheral tissues, but exerts its activity upon reaching the liver. All current insulin therapies result in significant amounts of peripheral tissue absorption of insulin. Over time, insulin accumulation in peripheral tissue causes serious complications such as poor circulation. In extreme cases this absorption leads to limb amputation and blindness.

"There is huge demand for improved approaches to the treatment of diabetes and this novel therapy, once fully developed, has the potential to offer many benefits to patients," said Dr. Keith Martin, vice president and director of BTG's Life Sciences Strategy, Development & Marketing group. "Hepatoselective insulin fits into the current regimen of self injection, but provides a more efficient and targeted treatment that minimizes damage to other organs while providing the liver with the correct level of insulin to function properly."

BTG is currently in discussions with potential licensees from the pharmaceutical industry to further develop this new technology. Specific analogs of these hepatoselective insulins have undergone preclinical and initial Phase I clinical proof of concept testing in humans.

Background on Diabetes

According to the International Diabetes Federation, an estimated 150 million people have diabetes worldwide. The figure is expected to rise to almost 300 million by the year 2025. The alarming increase of diabetes projection is based on the aging population, unhealthy diet, obesity, and sedentary lifestyle of today's population. The Center for Disease Control estimates that 16 million Americans have diabetes, with over 800,000 new cases diagnosed each year. It is the 6th leading cause of death and costs the US $98 billion annually in both direct treatment and indirect productivity costs.

About BTG

BTG finds, develops and commercializes emerging technologies in the life and physical sciences. These innovations are protected by a strong portfolio of intellectual property that BTG develops and enhances. BTG then captures the value in these technologies through licensing and venturing activities. From the origins of its business in 1949, BTG has commercialized major innovations such as Magnetic Resonance Imaging (MRI), recombinant factor IX blood-clotting protein, Campath(R) (alemtuzumab) and Multi Level Cell (MLC) memory. BTG is quoted on the London Stock Exchange under the symbol "BGC" and operates from offices in London and Philadelphia, with representation in Tokyo. BTG operates through wholly owned subsidiaries, BTG International Ltd. and BTG International Inc. in the UK and USA respectively.

For more information, visit http://www.btgplc.com or call 610/943-3577.