BTG Acquires Exclusive Rights to Use of a Novel Compound for Chemical Dissection; Broad surgical applications for agent that separates tissue with minimal incisions and greatly reduces scarring.

Business Editors/Health/Medical Writers

WEST CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--Oct. 6, 2003

BTG (LSE: BGC), the global technology commercialization company, announced today that it has acquired the exclusive rights for the development of MESNA (sodium-2-mercaptoethane sulfonate) as a chemical dissection agent for surgical applications of all types.

Preliminary studies have demonstrated that MESNA may allow surgeons to tease the tissue apart, thereby shortening surgical time and reducing the use of conventional cutting tools. It does this by breaking disulfide bonds of polypeptide chains. The compound has shown promise when used in concert with other surgical tools to separate pathological and normal tissue in various types of surgical procedures, suggesting potential uses in almost all surgical applications. Potential key advantages of the use of MESNA in surgical procedures are:

-- Ease of tissue dissection;

-- Reduced surgery time;

-- Reduced blood loss;

-- Reduced trauma to local tissue; and

-- Reduced post-operative complications related to anesthetic

time, bleeding and tissue manipulation.

Clinical evidence of the effectiveness of MESNA has been presented by Professor Carlo Zini and researchers at ARDO, the ENT group at the University of Parma (Italy) who originally recognized and patented the use of the compound (Benassi et al, J Am Coll Surg 2000; 191:65-69). Additional research continued in collaboration with several other European institutions.

As further proof to the effectiveness of the drug, a team at the Vanderbilt University School of Medicine recently published results of two animal studies in Plastic and Reconstructive Surgery describing the effect of MESNA in prevention and treatment of capsular formations around breast implants, a common problem in plastic surgery (Ajmal et al. Plast. Reconstr. Surg. 112: 1449-1454, 2003 and Ajmal et al. Plast. Reconstr. Surg. 112: 1455-1461, 2003). These independent studies, with broad implications for the compound's use in plastic surgery, found that MESNA significantly reduced contractural capsule formation when instilled at the time of the implant. It also improved the ease of removal, as well as the extent of capsule removal, when used five months following standard implant placement, leaving the researchers convinced that further study and development is needed.

Lillian Nanney, Ph.D., Director of the Plastic Surgery Research Lab at Vanderbilt said, "Our initial animal studies indicate that this compound may have several potentially useful applications. Its ability to lessen unwanted scar formation is one of those intriguing and appealing properties that warrants further basic and clinical evaluation."

Marie Lindner, MD, Vice President of Strategic Business Development at BTG, said "This compound shows great potential in reducing the difficulty of some surgical procedures, while minimizing tissue trauma and scarring for the patient. Having acquired the exclusive rights, BTG is now in a position to drive the development of this compound as a surgical tool. We look forward to working with our partners and consultants to validate the use of MESNA."

"The effects of MESNA that have been demonstrated in certain procedures pioneered here by the ARDO group, in addition to the groundbreaking results shown by the Vanderbilt researchers and their implications for plastic surgery, clearly demonstrate the need for further research around this new product as a tool in surgery," said Professor Fabio Piazza, one of the inventors from the University of Parma and scientific coordinator of ARDO research. "We have studied MESNA in more than 2000 patients during surgical procedures and found it to be safe and effective."

MESNA is also manufactured for use in oncology to prevent bleeding of the bladder with certain types of chemotherapy and as a mucolytic agent to thin mucus secretions. In both cases there is extensive clinical data available, and MESNA retains an excellent safety record.

Over 40 million surgical inpatient procedures were performed in the US alone in 2000, with a growing number of outpatient procedures. MESNA could ease surgical dissection in a wide variety of these procedures. BTG is now in the process of implementing further development in the US and Europe for various surgical applications.

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 Multilevel 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. Further information on BTG can be found at www.btgplc.com.