Distribution Agreement

RNS Number:5452X
Provalis PLC
20 June 2002


For Immediate Release                                               20 June 2002



                  Provalis Distribution Agreement for Pennsaid



Provalis (LSE: PRO; NASDAQ: PVLS) has now reviewed its position with regard to
the unexpected notice from Dimethaid purporting to terminate the Agreement under
which Provalis distributes Pennsaid in the UK, details of which were announced
by Provalis on 14th June 2002.



Provalis has concluded that, whilst Dimethaid was not entitled to terminate the
Agreement, the actions taken by Dimethaid have irreparably damaged the
relationship between the two companies.  As a consequence, Provalis has no
alternative but to treat the Agreement as terminated and is now looking to
Dimethaid for full compensation for its losses.  Notice of this has been given
to Dimethaid today.



Provalis will consider at the year end the carrying value of the investment made
in Pennsaid.

                                      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
Lisa Baderoon, 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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