Financial News 2006

Preliminary Results 2005

March 20, 2006

"At today's AGM David Lee, Chairman, Asterand plc made the following statements relating to current trading.

On 3 January 2006, following completion of the merger of Pharmagene plc and Asterand, Inc., the Company changed its name to Asterand plc. The first half of the year has seen considerable progress in integrating and restructuring the two businesses. The cost base has been reduced compared with the aggregate of both businesses separately prior to the merger and Asterand plc is now selling a wider range of services to an expanded client base. The company has a unified management team with a clear mission to become the leading provider of human tissue and related services to the pharmaceutical sector and a focus on bringing the business to profitability.

The Company's goal is to enable its clients, pharmaceutical and biotechnology companies, to take safer and more effective drugs into the clinic with increased confidence. It is delivering this goal through the provision of human tissue samples and tissue derivatives and by the provision of drug discovery services using the company's expertise in applied human tissue based research.

The company expects to announce its interim results for the six months ended 30 June 2006 in September.

Based on unaudited information the directors expect core revenues, being the supply of tissue samples and derivatives and the provision of drug discovery services, to be not less than £3.7 million. In addition, revenues of £350,000 have been received relating to the licensing of the R4 programme.

At 30 June 2006 the company had cash resources of £6.2 million.

The Board also announces its intention to initiate a search for a successor to Randal Charlton, the current Chief Executive Officer. Mr Charlton will continue to serve as CEO until a successor has been appointed at which time he intends to retire as a director of the Company. Randal Charlton, CEO of Asterand plc commented:

Asterand plc now has the sole focus of becoming a world leader in human tissue-based research for the pharmaceutical and biotechnology industry. We believe that Asterand offers a compelling proposition - a worldwide tissue acquisition network which, combined with our scientific research team, provides our clients with the opportunity to take safer and more effective drug candidates into the clinic with increased confidence."

Contact information:
Randal Charlton, Chief Executive Officer
David Lee, Chairman
Tel No: UK: 01763 211600
Tel No: US: 001 (313) 263-0960
www.asterand.com

Registered and Head Office: 2 Orchard Road
Royston
Hertfordshire
SG8 5HD
United Kingdom
www.asterand.com