Chiroscience and Zeneca Conclude Agreement for Return of Chirocaine License.

LONDON--(BUSINESS WIRE)--March 25, 1999--Chiroscience Group plc today announced that it has reached final agreement ("the Agreement") with Zeneca Group PLC for the immediate return to Chiroscience of rights to the long-acting local anaesthetic, Chirocaine. This Agreement, which has been concluded as a direct consequence of Zeneca's proposed merger with Astra AB, has been approved by the United States Federal Trade Commission ("FTC") and follows the similar approval by the Commission of the European Union that was announced on March 1, 1999. It relates to all territories, excluding Japan where Chiroscience has licensed Chirocaine rights to Maruishi Pharmaceutical Company Limited. Under the terms of the Agreement Zeneca will: o Make a (pound)10 million payment to Chiroscience to compensate

for the near-term impact on the commercialization of Chirocaine

as a result of Zeneca ceasing to be the licensee.

o Provide transitional funding and resources to ensure the optimum

continuation of the development of Chirocaine in all territories

excluding Japan, pending agreement with a new marketing partner

in such territories. This will be used for:

o pre- and post-marketing clinical studies;

o the filing of regulatory documentation worldwide (excluding

Japan);

o marketing support in order that the drug can be presented at all

upcoming major anaesthesia conferences; and

o continuing the product development already underway to create a

number of line extensions. Zeneca is obliged to fully fund the

completion of these elements of Chirocaine's commercialization.

Chiroscience estimates that this will cost an additional

(pound)10 million.

o Transfer to Chiroscience all commercial information created by

Zeneca, including market research and promotional materials.

o Extend the "lock-up" covering the potential disposal of its 3.12%

shareholding in Chiroscience. Under the FTC Consent Decree,

Zeneca will be obliged to dispose of its shareholding in

Chiroscience within four months of the end of this "lock-up"

period. Zeneca acquired its holding of 3.53 million ordinary

shares in Chiroscience when the original Chirocaine licensing

agreement between the two companies was signed in March 1998.

The Agreement also provides for the appointment by the FTC of an experienced industry executive as a Trustee who will oversee compliance with the Consent Decree that will be published by the FTC.

Dr John Padfield, Chief Executive of Chiroscience commented: "This Agreement with Zeneca has given Chiroscience the full rights to commercialize Chirocaine as well as a significant financial settlement. Zeneca retain no rights. In addition Zeneca has provided us with the funding and resources needed to maintain and improve the product profile and to build the platform for a successful launch of Chirocaine prior to concluding new marketing arrangements.

Discussions with potential new partners are underway and we remain confident that a new license agreement will be signed that will allow Chirocaine to be launched in the second half of 1999, once final FDA approval has been obtained. Meanwhile, following the receipt of an Approvable Letter for Chirocaine from the FDA, final negotiations are continuing with the FDA on the product labeling. We are preparing also to enter mutual recognition procedures to expedite further European licenses following approval by the Medical Products Agency in Sweden in December 1998."

This document is intended to provide information on Chiroscience to interested members of the public and not to provide product information to health professionals.

Chiroscience Group plc

Chiroscience is an emerging pharmaceutical company which uses its diverse technology platform to discover, develop and bring to market novel medicines for improved healthcare. It has three businesses: Chiroscience R&D, Rapigene and ChiroTech.

Chiroscience R&D's focus is on innovative small molecule drugs and related diagnostics in the therapeutic areas of inflammatory disease, pain, osteoporosis, cancer and autoimmune diseases. Its technology platform allows the conception and development of receptor-based and enzyme-inhibiting small molecule drugs with high selectivity of action. Rapigene is involved in the creation and provision of genomic technologies and services to partner companies and to Chiroscience's drug discovery programs. Its DNA analysis systems comprise of DNA hybridization, DNA arrays and mass spectrometry tags. ChiroTech provides chiral technology services to pharmaceutical and related industries, including Chiroscience R&D.

Chiroscience Group plc is listed on the London Stock Exchange and is based in Cambridge and Stevenage, UK, and Seattle, Washington, USA.