Re: Distribution Agreement

RNS Number:2765X
Provalis PLC
14 June 2002


For Immediate Release                                              14 June 2002



                PROVALIS ANNOUNCEMENT IN RELATION TO PENNSAID(R)
                             DISTRIBUTION AGREEMENT

Provalis plc announces that it has unexpectedly received a notification from
Dimethaid International Inc., purporting to terminate the Distribution Agreement
under which Provalis Healthcare distributes Pennsaid in the United Kingdom. In
addition, Provalis has noted that Dimethaid has today made a public announcement
in Toronto, Canada of this purported termination.

Provalis Healthcare believes that it is not in breach of its obligations under
the Agreement, that Dimethaid is not entitled to terminate the Agreement and
that Provalis Healthcare remains entitled to distribute Pennsaid in the United
Kingdom.

Provalis is currently seeking advice from its advisers, and will be contacting
Dimethaid to seek to resolve the issue. Provalis will update the market further
in due course.

                                      END

Provalis' Internet Website ; http://www.provalis.com

"Safe Harbor" Statement under the US Private Securities Litigation Reform Act of
1995: Statements in this announcement that relate to future plans, expectations,
events, performances and the like are forward-looking statements as defined in
the US Private Securities Litigation Reform Act of 1995. Actual results of
events could differ materially from those described in the forward-looking
statements due to a variety of factors.  Such factors include, among others: the
success of the Group's research and development strategy; uncertainties related
to future trial results and the regulatory process; the execution and success of
collaborative agreements with third parties; the impact of future laws,
regulations and policies; the Group's intellectual property position and the
success of patent applications for its products and technologies; stock market
trends in the Group's sector; the Group's dependence on key personnel; general
business and economic conditions; and other factors beyond the Group's control
that may cause the Group's available capital resources to be used more quickly
than expected.  These and other factors that could affect the Company's future
results are more fully described in its filings with the US Securities and
Exchange Commission, in particular the latest 20-F filing, copies of which are
available from the Company Secretary at the Company's registered address.

For further information:-


Dr Phil Gould, Provalis plc                                  Tel:  01244 833463
Mr Lee Greenbury, Provalis plc,                              Tel:  01244 833402
Nicola How, Buchanan Communications,                        Tel:  020 7466 5000


Notes to Editors

Provalis plc (LSE.PRO and NASDAQ.PVLS) is a healthcare company with three
separate divisions:-

Medical Diagnostics - develops and sells to world markets medical diagnostic
products for chronic disease management.  The division's principle products are
Glycosal(R) and Osteosal(R) in the areas of diabetes and osteoporosis
respectively.

Healthcare - sells and markets its own, and third party, branded, prescription
medicines in the UK to GPs and hospitals through its own regionally managed
sales force.  The division sells products in the areas of muscular-skeletal
disorders, gastroenterology, osteoporosis, migraine and dermatology.

Therapeutics R&D - develops a range of vaccine candidates for the prevention of
infectious diseases through a network of research collaborators.



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