Half Year Trading Update

RNS Number:1177H
Provalis PLC
07 January 2005


For Immediate Release                                         7th January 2005


                                  Provalis plc

                            Half Year Trading Update


                       Pharmaceutical sales advance by 5%

        Medical Diagnostics makes first sales of in2it(TM) A1c to the US

Provalis plc (LSE: PRO; NASDAQ:PVLS), the international Medical Diagnostics and
Pharmaceuticals group, is pleased to announce that unaudited sales for the half
year to 31st December 2004 were approximately #6.7 million. This is 5% ahead of
the same period in the previous year (#6.4 million), and is in line with the
Board's expectation.

During the first half of 2005 significant progress was made in both operating
businesses:-


Strong Sales by Pharmaceuticals Business

Sales by the Pharmaceuticals business were some #6.1 million, up 5% on the same
period last year. The second quarter sales were particularly strong, despite the
impact of wholesalers deferring purchases until after the 7% PPRS price
reduction takes effect in January 2005.

Diclomax(R) continues to sell well, helped by the withdrawal of Vioxx from the
market in October 2004 and the continuing uncertainties over other COX2
inhibitors, although the benefit of this has been counter-balanced by an
increase in generic competition. Calceos, our treatment to prevent or treat
osteoporosis, continued to make strong progress in the first half, with sales
significantly advanced over last year.

Medical Diagnostics Business Launches in2it(TM) A1c in the US

Activities within the Medical Diagnostics business were concentrated on
preparing for the US launch of in2it(TM) A1c following receipt of FDA clearance 
in August 2004.  Since then, the Company has worked with its various 
manufacturing partners to bring the product on stream, with the first shipment 
of in2it(TM) A1c to the US made in the first week of December.

Sales of the product in the US are being managed directly by Provalis' own sales
team, whose members each have extensive diagnostic experience within the US
diagnostics market. This sales team has established a number of preferred
distributors and key accounts in the US, and has helped achieve early take up of
in2itTM A1c. Indeed, interest in the product continues to grow as we expand our
distribution coverage in the US.

Sales of in2it(TM) A1c will progressively increase through the second half of 
the year although, as previously announced, sales will be limited during that 
period by our current manufacturing capacity of test cartridges. However, 
following the successful fund raising in September 2004, we have begun the 
staged implementation of automated manufacture of test cartridges. This remains 
on track for completion during the summer of 2005, and should give a several 
fold increase in production capacity.

Sales by the Medical Diagnostics business in the first half were some #0.6m,
principally from the supply of Glycosal(R) test cartridges to our existing
distributors.  The business remains on course to meet market expectations for
the full year as sales of in2it(TM) A1c increase.

Phil Gould, Chief Executive Officer of Provalis plc, commented: "The first half
year has seen increased sales by our Pharmaceuticals business and a significant
achievement by our Medical Diagnostics business with the approval and launch of
in2itTMA1c in the US.  In the second half of the year we will concentrate on
meeting the US demand for in2it(TM) A1c and continuing the development of two
further tests for the in2it(TM) platform, whilst continuing to maximise the
performance of our Pharmaceuticals business."

The Company's interim figures and an overview of trading expectations for the
full year will be presented in March 2005.

                                       END


Provalis' 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 medical diagnostic products for chronic
   disease management for sale to world markets. The business' principal 
   products are in2itTM A1c and Glycosal(R), both diabetes diagnostic tests, 
   and Osteosal (R), a diagnostic test for osteoporosis.

*  Pharmaceuticals - sells and markets its own, and third party, branded,
   prescription medicines in the UK and Ireland to GPs and hospitals through 
   its 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 osteoporosis, migraine 
   and dermatology.


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

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