AVAC phase I results in eczema

    SR Pharma and Genesis Research ready to move to phase II            
                        with AVAC in Atopic Dermatitis                         

London, 5 March 2003 - SR Pharma plc (LSE: SPA) and Genesis Research and
Development Corporation (NZSE / ASX: GEN) today announced the successful
completion of a phase I safety study of AVAC(TM), a derivative of M. vaccae,
for the treatment of atopic dermatitis (also known as eczema) in children. In
this study, AVAC offered a good safety profile and was well tolerated. Mild
injection site reactions were the most common side effect of treatment. No
serious adverse events were reported.

This safety trial of AVAC for atopic dermatitis in children follows a phase I
trial in adults completed in 2002. The present study, also conducted in
Wellington, New Zealand, involved 12 children aged 5 to 16 years. All children
received three intradermal injections of AVAC at intervals of 2 weeks.

Chief Operating Officer of SR Pharma Dr. David Kennard said: "The completion of
phase I safety studies in both children and adults warrants further evaluation
of AVAC in clinical trials. A placebo-controlled phase II trial in children
suffering from eczema is scheduled to start in the second quarter of 2003. The
phase II trial will allow us to accurately determine any benefits resulting
from AVAC treatment."

ENDS

About SR Pharma
SR Pharma plc (www.srpharma.com) was founded in 1992 and develops novel
medicines based on an improved understanding of the role played by the immune
system in combating disease. The company's proprietary M. vaccae-based
technology is the source of a number of product developments. SR Pharma is
currently evaluating SRP299 and AVAC(TM) for the treatment of asthma and atopic
dermatitis. The company is also investigating SRL172 as a vaccine adjuvant in
cancer and infectious diseases. These products enhance the immune responses
needed to combat cancer and infection, while regulating those that mediate
allergies.

For further information please contact:

Steeve Lamontagne, SR Pharma plc

Tel: [phone]

Email: [e-mail]

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