Issue of Equity

RNS Number:6041Q
Osmetech PLC
07 October 2003



                          Osmetech plc ("the Company")
                                 
                                 Issue of Equity

The Company is pleased to announce that it has conditionally raised #2,000,000
by way of a subscription for 66,666,667 new ordinary shares of 1p each ("New
Ordinary Shares") at a price of 3p per New Ordinary Share ("the Subscription").
The Subscription is to raise new funds for the acceleration of the Company's
commercialisation strategy.

The subscription is conditional upon the admission of the New Ordinary Shares to
trading on AIM for which application has been made. It is expected that dealings
in the New Ordinary Shares will commence on 13 October 2003.

James White, Chief Executive of Osmetech said,

"These funds raised will enable Osmetech to push ahead with its well-defined
product development programmes for the OPTI business, which has been
satisfactorily integrated into the Group and continues to perform ahead of
expectations. We plan to introduce new products over the next 9-18 months that
should enable this business to grow substantially.

"This additional cash will also strengthen our negotiating position with
potential partners and with respect to future M&A activity.

"The flexibility of our AIM listing has enabled us to raise these funds
economically and I am delighted to broaden Osmetech's institutional shareholder
base. This is a further sign of the rapid progress the Company has made over the
last few months in moving from pre-revenue to revenue status and is further
validation of the company's commercialisation strategy.

"The development of the integrated vaginal infection product incorporating the
Company's proprietary electronic nose technology remains on target for launch
during the first half of 2005.

"We believe that Osmetech should now have sufficient funds to fully support
its existing operations through to the launch of the integrated vaginal
infection device. This marks another significant favourable shift in the risk
profile for the Group."

                                      Ends

Enquiries:
Osmetech plc                                          020 7849 6027
James White, Chief Executive
David Sandilands, Chief Financial Officer

Bell Pottinger Financial                              020 7861 3871
Jonathon Brill/Charles Reynolds




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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