Trading Update

RNS Number:1643O
BioFocus PLC
31 July 2003


For Immediate Release                       31 July 2003


                                 BIOFOCUS plc

                                TRADING UPDATE

BioFocus plc announces today a trading update for the six months ended 30 June
2003.

During the last six months, BioFocus has restructured its business, announced
the consolidation of its Sittingbourne site and continued to evolve from a pure
service provider to a business that also participates in the substantial
potential downstream value generated by its drug discovery activities.

In its products and services business, BioFocus, in common with many of its
competitors, is experiencing challenging market conditions in 2003 as the
biotech sector conserves its cash reserves and pharmaceutical companies cut or
delay decisions on spending.  BioFocus' assessment is that the market is
essentially flat, although it is anticipated that the market will return to
growth in 2004.

Despite this difficult trading environment, BioFocus increased its turnover for
the half year by 7% to #7.46m from #6.97m in the first half of 2002.  However,
currency fluctuations, margin pressure and increased costs, including additional
biology facilities and strengthening of the management team, have all
contributed to a reduction in profit before amortisation of goodwill from #0.69m
for the first half of 2002 to around breakeven for the same period in 2003.
However, the Board anticipates that the benefits of the restructuring and site
consolidation will come through in 2004.

The management team has reassessed its forecast for the full year and has
concluded that the likely outcome in terms of profit before exceptional items
will be similar to that achieved in 2002.

Investment in research and development has been maintained and the Company
anticipates realising the first tangible results shortly.  The number of
programmes from which the Company can earn downstream returns such as milestones
and royalties has risen from 17 at the end of 2002 to 29 at the end of June this
year.  These payments represent a new and potentially recurring form of revenue
stream that positions BioFocus to participate in the long-term value generated
by its drug discovery activities.

The Board remains confident that the Company's record of profitability and cash
generation will continue and looks forward to growth in the business in the
future as market conditions improve and research and development programmes
progress.

For further information, please contact:

BioFocus plc                                                01799 533500
Geoff McMillan - Chief Executive

Buchanan Communications                                     020 7466 5000
Tim Anderson/Rebecca Skye Dietrich



About BioFocus

BioFocus is a leading drug discovery company working in partnership with major
pharmaceutical and biotechnology companies.  Additionally it is developing a
portfolio of internal drug discovery programmes aimed at providing drug leads
for partnering.  The company was founded in 1997 and is quoted on the
Alternative Investment Market of the London Stock Exchange.  BioFocus works with
a wide range of global clients and in 2002 provided services and/or products to
22 leading pharmaceutical companies.


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