Trading Statement

RNS Number:4612U
M.L. Laboratories PLC
21 January 2004


Embargoed until 0700                                             21 January 2004


                              ML Laboratories PLC
                                ("the Company")

                                 Trading Update

As previously notified, the Company expects to announce its preliminary results
for the year ended 30 September 2003 on Wednesday 28 January 2004. The results
are expected to be in line with market expectations.

In the announcement of the Company's interim results for the six months ended 31
March 2003, the Company stated that it had a reasonable expectation that the
Group would have sufficient working capital for its present requirements. The
Company has reviewed its current working capital requirements and, as a result
of delays in the receipt of milestone income, has concluded that it can no
longer have a reasonable expectation that anticipated milestone income in the
short term will be sufficient to fund its existing development plans. It has
therefore concluded that it should explore ways of raising additional funds.

The Company has consistently demonstrated a tight control on working capital and
has consistently drawn the attention of shareholders to the reliance of the
Company on the timely receipt of milestone income. The Company has concluded
that it would be in the best interests of shareholders to continue to pursue its
current development plans rather than to curtail development expenditure. The
Company has also taken into consideration the views of several institutional
investors, which it met during October 2003, and which expressed the view, at
that time, that the Company should consider raising funds to provide additional
comfort on working capital. It is, therefore, currently considering a potential
equity fundraising with the objective of providing further working capital
sufficient to reduce the Company's historical dependence on significant
milestone receipts going forward.

The Company will keep shareholders informed of any developments as appropriate
and will provide an update on progress at the time of the preliminary results
announcement for the year ended 30 September 2003 which is expected on 28
January 2004.

                                    - Ends -



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