Issue of Equity

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CeNeS announces placing of 17,441,296 new ordinary shares

Cambridge, UK, 8 August 2003 - CeNeS Pharmaceuticals plc ("CeNeS" or
" the Company") (LSE:CEN) is pleased to announce that, subject to the
satisfaction of certain conditions,  it has raised approximately
£675,000, before expenses, through a placing ("the Placing") with
investors of 17,441,296 new ordinary shares of 1p each in the Company
( "New Shares") at a price of 3.875 pence per New Share. This Placing
is in conjunction with the announcement also made today by the
Company in relation to the conversion and subsequent sale of all of
Elan Corporations interest in CeNeS.

The Placing is conditional on the admission of the New Shares to
trading on AIM and on the approval by CeNeS Shareholders of certain
resolutions as set out in the Company's notice of AGM which was
posted on 15 July 2003, the passing of which are expected at the AGM
to be held on 11th August 2003.

The net proceeds from the Placing will be used by the Company for
general working capital purposes.

Certain of the Directors of the Company have conditionally
subscribed, in aggregate, 645,164 New Shares. Following completion of
these subscriptions, they have the following beneficial interests:


Name         Subscription No. of Ordinary Shares Percentage of
                          after the Placing      enlarged issued
                                                 share capital after
                                                 the Placing
Alan Goodman 516,129      14,150,533             6.7
Neil         129,035      181,635                0.08
Clark


As Alan Goodman and Neil Clark are Directors of the Company, the
participation by them in the Placing constitutes a related party
transaction (as defined in the AIM rules). Mr Ronald Irwin, the
non-executive director who is not participating in the Placing,
having consulted with Evolution Beeson Gregory Limited, the Company's
nominated advisor, considers the terms of the transaction fair and
reasonable insofar as the Company's shareholders are concerned.

Application will be made for the New Shares to be admitted to trading
on AIM and dealings are expected to commence on 13 August 2003.


For more information please contact:

CeNeS Pharmaceuticals plc
Alan Goodman
Neil Clark
Tel: [phone]
Fax: [phone]

Euro RSCG Life NRP
Dr Douglas Pretsell
Tel: [phone]
Fax: [phone]

Evolution Beeson Gregory Limited
Matt Wood
Tel: [phone]
Fax: [phone]



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