Vaccine Option Agreement

RNS Number:3479A
Provalis PLC
1 July 2004


For Immediate Release                                            1st July 2004


                                  Provalis plc


          Provalis signs Vaccine Option Agreement with Chiron Vaccines


Provalis plc (LSE: PRO; NASDAQ: PVLS), the Medical Diagnostics and
Pharmaceuticals Group, today announces that it has signed an option agreement
with Chiron Vaccines. Under the terms of the agreement:


* Chiron Vaccines is granted an initial 12 month, exclusive
option (extendable by a further 12 months on payment of a fee) to evaluate
Provalis' protein based vaccine candidates to prevent Group B Streptococcus
infection;

* Chiron Vaccines has paid an initial option fee to Provalis
and will pay all costs connected with the patents underpinning these vaccine
candidates; and

* Chiron Vaccines has the right to enter into an exclusive
licence for, or to acquire, these vaccine candidates, in both cases on
pre-determined terms (which include the quantum of staged milestone payments and
royalty rates for the licence).


Commenting on the agreement, Phil Gould, Chief Executive Officer of Provalis
said "We announced in 2002 that we would focus all of our resources on our
Medical Diagnostics and Pharmaceuticals businesses, and would seek partners to
continue the development of our vaccine development programmes. We are,
therefore, delighted to have reached this agreement with a major worldwide
player in vaccine development such as Chiron Vaccines. This, together with the
earlier deal with GlaxoSmithKline for Haemophilus Influenzae antigens, delivers
potential long term upside for our investors."


                                      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
viability of the Group's products, which are at various stages of development;
the generation of sufficient operating cash flow by the Group's pharmaceutical
and medical diagnostic businesses to finance the ongoing development of these
businesses as well as the Group's research and development activities; the
success of the Group's research and development strategy and activities;
uncertainties related to future clinical trial results and the associated
regulatory process; the execution and success of collaborative agreements with
third parties; availability and level of reimbursement for the Group's products
from government health administration authorities or other third-party payors;
the rate of net cash utilisation within the Group and, hence, the Group's
possible need for additional capital in the short, medium and/or long term; the
Group's intellectual property position and the success of patent applications
for its products and technologies; the Group's dependence on key personnel;
general business and economic conditions; the impact of future laws, regulations
and policies; stock market trends in the Group's sector; 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, Chief Executive Officer, Provalis plc, Tel: 01244 833463

Mr Peter Bream, Finance Director, Provalis plc, Tel: 01244 833552

Mr Lee Greenbury, Company Secretary, Provalis plc, Tel: 01244 833402

Lisa Baderoon, Buchanan Communications, Tel: 020 7466 5000





Notes to Editors


Provalis plc (LSE: PRO; NASDAQ: PVLS) is a diversified healthcare group with two
operating businesses:-


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


* Pharmaceuticals - sells and markets its own, and third party,
branded, prescription medicines in the UK and Ireland to GPs and hospitals
through its own regionally managed sales force. The business' principal product
is Diclomax(R), a medicine for use in the treatment of musculo-skeletal disorders,
and it also sells products in the areas of gastroenterology, osteoporosis,
migraine and dermatology.


Provalis' Vaccine Development - From 1998 to 2002, Provalis identified a number
of recombinant protein antigens as candidates for common infections. However,
given the significant costs required to fund the development of lead candidates
through clinical trials, Provalis concluded that further development was beyond
its resources and so sought partners for the development programmes.


Group B Streptococcus (GBS) is a species of bacteria causing severe infection
including meningitis, pneumonia and bacteraemia in infants and the elderly.
Provalis' proprietary recombinant protein based antigens allow the development
of a vaccine to prevent or treat cases of GBS infection.


Chiron Vaccines, a business unit of Chiron Corporation, is the world's
fifth-largest vaccines business and the second-largest provider of influenza
vaccines.






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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