British Biotech plc London Stock Exchange.

OXFORD, England--(BUSINESS WIRE)--June 24, 1999--

The Board of British Biotech notes the statement made today by the Quotations Committee of the London Stock Exchange ("the Exchange") in respect of the inquiry undertaken by the Exchange into events at the Company prior to April 1998.

The statement relates to announcements by the Company while its Marketing Authorization Application for Zacutex was being considered by the EMEA. The Exchange has disagreed with the view of the directors at the time that the announcements made were appropriate in the circumstances. Although the Company does not agree with the findings of the Exchange, the Board has decided not to exercise the Company's right to contest the ruling of the Quotations Committee as the Board believes it is in the best interests of the Company and its shareholders to concentrate resources on building a successful business.

The Company has fully co-operated with the Exchange and has been notified that no further inquiry is in progress, or under consideration, in respect of any other events concerning the Company.

In a statement, Mr Chris Hampson, Chairman, British Biotech plc, said, "We have noted the position of the London Stock Exchange and accept that there are lessons to be learned. Every biotechnology company faces, and will continue to face, difficult judgments in reporting drug development-related issues. We look forward to the forthcoming publication of an industry Code of Practice by the UK BioIndustry Association which we expect to give additional guidance to biotechnology companies on meeting their obligations under the Listing Rules. British Biotech is committed to timely reporting to shareholders in a fair and balanced manner as an integral part of its strategy in moving the business forward."