CAT Catco Reinsurance Opportunities Fund Limited

RNS No 2780v
CAMBRIDGE ANTIBODY TECHNOLOGY GROUP
23rd June 1998


CAMBRIDGE ANTIBODY TECHNOLOGY 
ACQUIRES POWERFUL EXTENSION TO ITS PLATFORM TECHNOLOGY CAPABILITY

Deal gives CAT controlling patent in polysome display

Melbourn, UK. Cambridge Antibody Technology Group plc (CAT) today announced a
powerful extension to its existing antibody display platform technology by
entering into an agreement to purchase a US company, Aptein Inc.

Aptein's major asset is granted US patents that dominate the field of polysome
display (including but not limited to antibody display).  Aptein has filed
patent applications in Europe (grant of which is expected soon) and Japan and
also has a granted patent in Australia.

The combination of polysome display (also known as ribosome display) with
phage display offers:
- improved efficiency
     larger library size
     faster selection cycle time
- enhanced capabilities
     antibody mediated rapid gene cloning 
- consolidation of CAT's dominant position in display technology.

CAT intends to develop the Aptein technology in-house using its existing
resources and does not intend to maintain Aptein's office or laboratory
presence in the US.

Under the terms of the agreement CAT will purchase the issued share capital
and outstanding share options and warrants of Aptein (and take on the
obligation to settle certain obligations of Aptein) for a total consideration
of up to $11 million.  The consideration will be satisfied by the issue of up
to 2.366 million CAT shares.  $6 million of the consideration will be
satisfied by the issue of 1.290 million CAT shares on the closing of the
transaction.  The balance of the consideration of up to $5 million will be
satisfied by the issue of up to 1.076 million CAT shares after Aptein has
received grants of European patents (currently applied for) for its key
technology which have been sustained through opposition or appeal.  The number
of CAT shares to be issued will be determined by the nature of the patent
grant which is obtained (with the added proviso in certain cases that
specified revenue targets are met).

Closing of the acquisition is conditional, amongst other things, on the
approval of the transaction by Aptein shareholders and the listing on the
Official List of the London Stock Exchange of the shares to be issued on
closing.  CAT has received irrevocable undertakings from a majority of Aptein
shareholders to vote in favour of the transaction.  It is expected that
closing will take place on 15 July 1998.  1.237 million CAT shares will be
subject to a restriction on sale for a period of six months following the
closing of the transaction.

Aptein is based in Seattle, USA.  It was founded in 1989 by Dr Glenn Kawasaki
who is currently the company's President and sole employee.  Following closing
Dr Kawasaki will resign as an employee of Aptein but CAT is retaining his
services as a consultant to the company.

As at 31 December 1997 Aptein had net assets (unaudited) of $234,000 and made
a loss (unaudited) in the year ended 31 December 1997 of $94,000.

"Aptein's polysome display technology is one that CAT has been closely
monitoring for some time.  With the grant of patents in the US controlling
polysome display and their expected grant in Europe we believe that it has now
developed to a level that makes it a valuable acquisition for CAT." said Dr
David Chiswell, Chief Executive of CAT.  He added, "CAT has the expertise to
develop, add value and exploit the technology further and by combining phage
and polysome display we can considerably enhance the power of CAT's technology
platform."


For Further Information Contact:
Cambridge Antibody Technology                      Tel: +44 (0) 1763 263233
David Chiswell, Chief Executive Officer                            
John Aston, Finance Director

City/Financial Enquiries                           Tel: +44 (0) 171 957 4600
Nicola How, HCC.De Facto Financial                            

Scientific/Trade Enquiries                         Tel: +44 (0) 1223 518093
Andrew Worsfold, HCC.De Facto Cambridge                     



Notes to Editors

Aptein's technology can be viewed as analogous to CAT's phage display
technology.  The key difference is that rather than displaying large libraries
of antibodies on a simple virus (the phage) the libraries of antibodies are
displayed on  a component of the cell known as a ribosome.  The complex of
ribosome, mRNA and newly made protein (including antibodies) is referred to as
a polysome.  The polysome is responsible for protein synthesis in the cell. 
As with phage display, selection techniques allow the isolation, from these
libraries, of single molecules, which bind drug targets of interest, or, by
using antibodies, the isolation of the targets themselves.

CAT is a UK biotechnology company focused on engineering advanced human
monoclonal antibodies for drug discovery and drug development.

Based in Melbourn, 10 miles south of Cambridge, England, CAT currently employs
over 130 people.  In March 1997, CAT completed its initial public offering and
listing on the London Stock Exchange, raising approximately #41 million.

CAT has a world-leading platform technology for rapidly isolating fully human
monoclonal antibodies and its phage-display library currently incorporates
more that 67 billion distinct antibodies.  This library forms the basis for
the company's strategy to develop a portfolio of clinical development
programmes with the objective of initiating three to four clinical programmes
per year from the year 2000. The first two antibody products developed by CAT
started clinical trials in 1997, in inflammation and fibrosis.

CAT has a number of license and collaborative agreements in place with
pharmaceutical and biotechnology companies.  These include: ICOS, Genentech,
Pfizer, Eli Lilly, BASF Pharma, Genetics Institute/BASF Pharma, Mitsubishi
Chemical and ObeSys (with BTG).

END

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