Disposal

RNS Number:9904I
Medical Solutions PLC
20 March 2003

For Immediate Release:                                             20 March 2003


                             Medical Solutions plc

                 FINALISES DISPOSAL OF PHARMACEUTICAL DIVISION


Nottingham, UK: Medical Solutions plc ("Medical Solutions" or "Group")
announces that the completion accounts, prepared in connection with the disposal
of its Pharmaceutical Division, have now been satisfactorily finalised. The
circular issued to shareholders on 28th November 2002 gave details of the
potential adjustments to consideration as a result of the measurement of
operating profits and net working capital of the division against agreed
targets.

Charles Green, Chief Executive Officer,  stated:

"The Board is delighted to announce that the net cash position of the Group,
including the agreed completion proceeds, is ahead of our  expectations at the
time of exchange and Medical's year end cash balance stands at a healthy #12
million, representing approximately 15.2  pence per share."

Medical Solutions will be announcing its preliminary results for the year ending
31 December 2002 on 31 March 2003.


                                    - ENDS -


For further information, please contact:


Medical Solutions
Charles Green, Chief Executive Officer              Tel:  [phone]
Andy Longstaffe, Finance Director

Buchanan Communications                             Tel: [phone]
Nicola How / Louise Bolton



Notes to Editors:


Medical Solutions:

Medical Solutions operates two divisions: technology and services. The services
undertakes contract pathology work for the NHS and the pharmaceutical industry
and has a tissue collection facility and compromises Pathlore and Peterborough
Cellular Pathology Services (PCPS). Technology contains two complimentary
businesses with expertise in imaging which compromises Fairfield and Kinetic
Imaging.


PathLore

PathLore primarily undertakes contract pathology work for UK hospitals and NHS
trusts. PathLore's reference laboratories provide a comprehensive range of
tests, provide prognostic profiling for the selection of appropriate adjuvant
therapy, tissue preparation and evaluation for drug development and clinical
trial evaluation, and cervical screening and general cytology. As at 16 November
2002, PathLore employed 50 consultant pathologists providing specialist remote
locum services to 12 hospitals and NHS trusts. The number of tests carried out
by PathLore has grown significantly month on month since its launch in June
2001. In December 2001 the volume of tests undertaken was under 1,000, in June
2002 it was 2,108 and more recently in August 2002, 3,237 tests were carried
out.


PCPS

PathLore together with PCPS, Fairfield and Kinetic are best placed to support
the drug development programmes of major Pharmaceutical and Biotech companies.
Collectively, they provide comprehensive expertise to support all aspects of
human diseased and normal tissue handling and characterisation from
microscopical morphological assessment through to the extraction and analysis of
individual components and molecules, including DNA, RNA, and proteins.


Fairfield

Fairfield has developed software image analysis management systems for cancer
diagnosis, prognosis and telepathology, allowing tissue samples to be examined
at high resolution under the control of a clinician operating from a remote
location. This system is ideally suited to the organisation of NHS cancer
networks in the UK, and the support of drug research by pharmaceutical and
biotech companies. The recently announced arrangement to supply 7 hospitals
centred around Edinburgh with its product, PathSight, together with the
opportunities to cross sell diagnosis services from PathLore's pathologists has
endorsed the Directors belief of the strong potential growth in this part of the
business.


Kinetic

Kinetic is a leader in fluorescent imaging with its Komet product, measuring DNA
damage in cells, and Live Cell Imaging products, and has many major cancer
research establishments as customers.


SurePath

The rights to distribute the SurePath LBC (Liquid Based Cytology - a new method
for analysing cervical tests) system in the UK are excluded from the sale of
Cellpath.  It is proposed that these rights will be formally novated to the
Company.  The Directors are confident that SurePath should benefit from the
setting up of dedicated LBC units. In Scotland, LBC implementation is to be
completed between 1 January 2003 and April 2004. The UK government has also
committed to the establishment of 80 new LBC screening centres in the UK by the
end of 2004.


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