Trade Sale of Two Companies

RNS Number:4604F
Biofusion PLC
10 October 2007


For immediate release                                            10 October 2007



                                 BIOFUSION PLC     
                         ("Biofusion" or "the Company")



                     TRADE SALE OF TWO PORTFOLIO COMPANIES


Biofusion plc (AIM: BFN), the university IP commercialisation company that turns
world class research into business, is pleased to announce the trade sale of two
of its portfolio companies, Cardiff ProTides Ltd ("ProTides") and Cardiff
Biologicals Ltd ("Biologicals") in each of which Biofusion had a 50 per cent
shareholding, to Morvus Technology Ltd ("Morvus"), a privately owned
pharmaceutical company specialising in the discovery and development of novel
oncology therapies.


As a result of the sale Biofusion now owns 13,698,630 shares in Morvus, giving
it a 20% shareholding in the enlarged Morvus group.


Morvus has raised over #3.4 million in equity finance to date and its most
recent funding, largely concluded in July 2007, valued Morvus at approximately
#12m, based on a price of 30p per share.


The directors of Biofusion and Morvus believe the integration of the ProTides
and Biologicals pre-clinical product portfolio into Morvus' existing product
pipeline has created a company with the critical mass to be a key player in the
oncology sector of the pharmaceutical market.


Following the sale of these two companies Biofusion has a remaining portfolio of
23 companies from its partnerships with The University of Sheffield and Cardiff
University.


Commenting on the trade sale of these two portfolio companies, David Baynes,
Chief Executive Officer of Biofusion, said: "Morvus' expertise in oncology based
pharmaceutical development convinced us that the new combined company could be a
world leader in the provision of specialist oncology drugs and provided the best
opportunity for bringing ProTides and Biologicals' exciting lead compounds to
market.


The valuation of the transaction is based on Morvus' last funding round and
given that these shares were privately held, we will take a conservative view to
recognising this value in Biofusion's accounts. Our intention will be to
re-evaluate this value at Morvus' next third party funding round. However we
believe the combined group is well placed to realise an increased value for its
shareholders."


Also commenting on the announcement, Dr Phil Burke, Chief Executive Officer of
Morvus, said:  "We are extremely pleased with the acquisitions of ProTides and
Biologicals. The quality of IP generated from Biofusion's portfolio is
particularly strong and we are excited by the technology in both companies. The
two businesses perfectly complement our existing product portfolio and we look
forward to advancing their candidate drugs towards patient trials and
commercialisation."



For further information about Biofusion or Morvus please contact:


Biofusion                                                 [phone]
David Baynes, CEO

Morvus                                                    [phone]
Phil Burke, CEO

Buchanan Communications                                   [phone]
Lisa Baderoon / Mary-Jane Johnson / Catherine Breen

Nomura Code                                               [phone]
Phil Walker / Clare Terlouw



About Biofusion


Biofusion was established in 2002 to commercialise university-generated IP.
Biofusion has signed long term agreements with two of the UK's top ten research
intensive universities (University of Sheffield and Cardiff University) giving a
combined R&D spend attributable to Biofusion of approximately #114 million a
year. The Company has a portfolio of over 20 spin-out companies.


Biofusion's first agreement was a ten-year exclusive arrangement with the
University of Sheffield for the commercialisation of IP owned by the University
in the area of medical life sciences. Biofusion has shareholdings in a portfolio
of Sheffield University spin-out companies including Asterion, Axordia,
Celltran, Lifestyle Choices, Diurnal and Phase Focus. The University of
Sheffield was ranked 5th in the UK for the quality of its life sciences research
and will be spending an estimated #0.5bn of research funding over the lifetime
of the Sheffield Agreement.


In January 2007, Biofusion completed a long-term exclusive agreement with
Cardiff University, to commercialise 100% of all Cardiff University's
research-generated IP.  Biofusion has shareholdings in a portfolio of Cardiff
University spin-out companies including Abcellute and Q-Chip. Cardiff University
was ranked 7th in the UK in the most recent research rankings and will be
spending over #1.0bn of research funding over the lifetime of the Cardiff
Agreement.


www.biofusion.co.uk




About Morvus


Morvus is a privately-owned company engaged in the discovery, development and
commercialisation of novel drugs and technologies, primarily in the field of
oncology.

The company was established in 2004 and has its main offices and laboratories
near Llanarthne, South Wales with a small facility at the Porton Down Science
Park near Salisbury, Wiltshire.

It has a broad portfolio of technology which has been mainly generated in-house
and which is focused on disease areas for which there is a clear, unmet medical
need. Its products are based upon core expertise in prodrug-enzyme interactions
and knowledge of the mechanism of apoptosis.

Its commercial strategy is to secure development and commercialisation partners
for its products following proof-of-principle clinical studies. Morvus generates
revenue by licensing its intellectual property and/or know-how but retains a
stake in the technology and produces shareholder value via receipt of signature
fees, milestone payments and royalties.



www.morvus.com




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