Signs New Agreement

    Immediate Release                                               12 January 2004

                           Profile Therapeutics plc                            

Profile signs agreement to manage Grampian NHS Trust's Obstructive Sleep Apnoea
                                   patients                                    

Profile Therapeutics plc ("Profile"), which develops and commercialises
specialist inhaled therapies, is delighted to announce the signing of an
agreement with Grampian University Hospitals NHS Trust ("Grampian") for the
supply of its Sleep Therapy Services.

Under the terms of the 5-year agreement Profile will supply Grampian with
equipment, consumables and its innovative internet-based patient compliance
service "Management of Sleep Therapy" (MOST®). The comprehensive MOST service
is aimed at relieving some of the increasing burden of patient management
allowing clinicians more time to diagnose and treat more patients.

The agreement covers an initial 287 patients and Profile will receive an annual
fee for each patient. Profile believes that Grampian is the first NHS trust to
transfer management of this patient group to a third party.

Obstructive Sleep Apnoea ("OSA") is caused by the restriction of the upper
airways during sleep preventing adequate breathing and resulting in highly
disturbed and broken sleep. As it occurs in approximately 4% of the adult male
population it represents an important additional opportunity for Profile.

Commenting on today's announcement, John Lisle, Chief Executive of Profile,
said:

"I am delighted that we are working with Grampian on the provision of
cutting-edge patient support and compliance management systems. Early
indications from the first patients transferred to MOST are that the systems
are working very well and patient compliance is already improving. We intend to
extend the use of MOST to important at-risk groups."

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For further information, please contact:

Profile Therapeutics                                                           
                                                                               
John Lisle, Chief Executive Officer                          Tel: [phone]
                                                                               
Buchanan Communications                                      Tel: [phone]
                                                                               
Tim Anderson                                                                   
                                                                               
James Strong                                                                   

Notes to Editors:

Profile Therapeutics plc develops and commercialises specialist inhaled
therapies to improve the treatment of respiratory patients. Profile's core
patient groups are the young, the elderly and individuals with severe
respiratory impairment. The diseases targeted by Profile include: cystic
fibrosis, primary pulmonary hypertension, asthma, emphysema, chronic
bronchitis, sleep disorders and Chronic Obstructive Pulmonary Disease ("COPD").

PRS are the UK's second largest supplier of products for OSA. There were
approximately 7,000 people diagnosed with OSA in the UK in 2003 and the
diagnosis rate is increasing 20% pa.

MOST® is a service solution designed to remove time-consuming administration
and routine maintenance for clinicians and to provide convenient monitoring of
diagnosed OSA patients. It provides state-of-the-art equipment and consumables
together with a full patient liaison, support and compliance monitoring
service. The overall patient management is charged on a capitated basis.

In addition to its sleep therapy services, Profile supplies conventional
nebulisers and compressors and has developed proprietary innovative delivery
systems using its "intelligent inhaler" technology known as Adaptive Aerosol
Delivery or AAD®. These systems automatically respond to individual patients'
breathing patterns to deliver a precise and reproducible dose. AAD systems are
being used for the delivery of Schering's Ventavis for Pulmonary Hypertension
and Profile's own medicine, Promixin, an inhaled antibiotic for patients with
cystic fibrosis. A range of respiratory medicines for the US market are being
developed through a joint venture with Breath Ltd.



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