Chirotech and CombiChem Form Joint Venture to Commercialize Single-Isomer Chiral Compound Libraries.

LONDON--(BUSINESS WIRE)--Dec. 2, 1998--Chirotech Technology Limited ("ChiroTech"), a member of the Chiroscience Group of companies (LSE: CRO), and CombiChem, Inc. ("CombiChem") (Nasdaq NMS: CCHM) today announced that the companies have signed a joint venture agreement establishing ChiroChem Discovery Services LLC, a San Diego-based company which will develop and sell specifically designed chemical libraries under the ChiroChem(R) name. Under the agreement, ChiroTech will provide novel, multi-functional chiral templates which will be used by CombiChem scientists as an information base to design and synthesize information-rich chiral compound libraries. These ChiroChem libraries will be marketed by ChiroTech's salesforce to a worldwide customer base focused on the life sciences industries. Operations of the new joint entity will be equally funded by both companies and revenues will be shared equally. The financial terms of the agreement are not being disclosed.

Dr. Alan Shaw, Managing Director of ChiroTech, commented, "ChiroChem Discovery Services will be the first dedicated supplier of quality, single-isomer chiral libraries and will provide its customers with greater structural activity and selectivity information for their discovery programs. In CombiChem, ChiroTech has a quality partner already established in the field of computational drug design."

"This joint venture represents an important, new avenue for CombiChem to offer combinatorial libraries and generate near-term revenues," stated Vince Anido, Jr., Ph.D., President and Chief Executive Officer of CombiChem. "ChiroTech, as the leader in chiral technologies, provides the ideal complementary technologies to our design and synthesis capabilities."

Notes to Editors:

Chirotech Technology Limited, based in Cambridge UK, is an acknowledged world leader in the provision of chiral technology, products and services to the life sciences industries. Its established portfolio includes; ChiroChem Collection, a catalogue of novel chiral building blocks for discovery and early development; ChiroSure(tm), contract R&D services; ChiroCats(tm), proprietary catalysts and ligands; and, through its alliance with Mitchell Cotts Chemicals UK, the provision of advanced chiral intermediates and active pharmaceutical ingredients at multi-ton scale.

Chirotech Technology Limited is 70% owned by Chiroscience Group plc and 30% by Ascot PLC who acquired their shareholding in the business for (pound)30 million on September 1, 1998. At the same time ChiroTech entered into a formal manufacturing alliance with Mitchell Cotts Chemicals Limited, Ascot's fine chemicals manufacturing subsidiary based in West Yorkshire, UK.

CombiChem, Inc., based in San Diego, California, is a computational drug discovery company that is applying its proprietary design technology and rapid synthesis capabilities to accelerate the discovery process for new drugs. CombiChem believes that its approach offers pharmaceutical, biotechnology and agrochemical companies the opportunity to conduct their discovery efforts in a more productive and cost effective manner. Using its proprietary Discovery Engine(R) process, CombiChem focuses on the generation, evolution and optimization of new lead candidates for its collaborative partners, who will then develop, manufacture, market, and sell the resulting products. CombiChem has established collaborative agreements with Athena Neuroscience, Inc., a wholly owned subsidiary of Elan Corporation, plc., ICOS Corporation, ImClone Systems Incorporated, Novartis Crop Protection AG, Roche Bioscience, Sumitomo Pharmaceuticals Co., Ltd., and Teijin Limited.

Chiroscience Group plc is an emerging pharmaceutical company which uses its diverse technology platform to discover and develop novel medicines for improved healthcare. It is listed on the London Stock Exchange. The Group has three principal activities: Rapigene; Chiroscience R&D; and ChiroTech.

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.

The Chiroscience R&D drug discovery and development activities are based in Cambridge and Stevenage, England, and Seattle, Washington, USA and encompass skills from gene-based target research and molecular biology, through chiral-based, combinatorial, medicinal, and process chemistries, to clinical development and registration. The focus of activities is on the discovery and development of innovative small molecule drugs and related diagnostics with a therapeutic focus on cancer, inflammation, pain, osteoporosis and autoimmune diseases. Additional information on Chiroscience can be accessed on the company's home page: http://www.chiroscience.com.