Cyprotex PLC (LSE:CRX), the drug discovery technology and information company, today reports its interim results for the half year ended 30 June 2005.

Highlights

• Revenues increased by 58% to £1.40m (First Half 2004: £0.89m)
• Gross profits were 66% higher at £1.22m (First Half 2004: £0.73m)
• Gross margin rose to 87%, compared with 83% for the same period last year
• Cash resources at end of June 2005 were £1.34m
• Basic loss per share down to 0.33p (First Half 2004: 0.62p)
• Significant milestone achieved during the first half 2005, with positive monthly trading cash flow generated for the first time
• Continued expansion of the customer-base and the signing of new, longer-term and collaborative contracts in each of the three continents where drug discovery is focused

Commenting on the results, Robert Morrisson Atwater, Chairman and Chief Executive Officer of Cyprotex PLC, said: "Cyprotex set itself some major goals at the beginning of 2005. Significant progress toward these had been made by the half-year stage. This bodes well for the full year."

For further information:

Cyprotex PLC
Robert Morrisson Atwater, Chief Executive Officer
Tel: +44 1625 505 100
ir@cyprotex.com
www.cyprotex.com

Code Securities
Chris Collins
Tel: +44 (0) 20 7024 2000
cic@codesecurities.com
www.codesecurities.com

Media Enquires:

Abchurch Communications
Heather Salmond / Samantha Robbins
Tel: +44 (0) 20 7398 7700
samantha.robbins@abchurch-group.com
www.abchurch-group.com

CHAIRMAN AND CHIEF EXECUTIVE OFFICER’S STATEMENT

Meeting Objectives

Cyprotex set itself some major goals at the beginning of 2005. Significant progress toward these had been made by the half-year stage. This bodes well for the full year.

Somewhat earlier than expected, Cyprotex achieved an important milestone. Enjoying the benefits of significant capacity expansion that was largely paid for during 2004, the Group is trading cash flow positive, on a single monthly basis.

Cyprotex continued to outpace the growth of its underlying market. Having added to its North American marketing team, a growing contribution from this continent, both in terms of customer numbers and contract size, is already evident. Cyprotex has also secured its first customer in the Japanese market, which it believes will secure its longer-term presence in the region. Continued expansion of its base of active customers proves both the market opportunity for, and the superiority of, the Group’s sector-leading technologies.

Whilst further expansion of its product offering, state-of-the-art laboratory facilities and office reorganisation will be funded during the second half, Cyprotex’s resources continued to be carefully guarded and opportunities for cost reduction continually monitored. Cyprotex remains comfortable with the benefit of a significant cash ‘cushion’. Existing operations are considered to have sufficient resources to fund their own expansion going forward.

Cyprotex continues to focus on achieving each of the key objectives set out in the Group’s 2004 Annual Report and Accounts. Necessary skills, resources and experience will be added at Board level to allow the Group to seize the opportunities its global market offers. Cyprotex will attempt to further capitalise on its significant past expenditure in predictive computational capabilities through academic franchise and industrial collaboration. Management will also focus on meeting the needs of its global customer base through both organic expansion of its product offering and ‘bolt-on’ acquisitions of related technology.

Financial Highlights of the 2005 half year

• Revenue for the half-year ended 30 June 2005 was £1,400,860, against £886,238 for the comparable period in 2004, representing a 58% increase year-on-year.

• Gross profits rose 66% to £1,216,604, up from £734,433 in the first half of 2004.

• Gross margins reached 87%, compared with 83%.

• The loss on ordinary activity after taxation for the half year was £419,163, down from a loss of £759,200, representing a reduction of 45% year-on-year.

• Cash resources were carefully guarded. Cash in hand at 30 June 2005 amounted to £1.34m, despite continued investment in new products and laboratory capabilities.

• A rapidly expanding customer base has ensured the Group does not have a high dependence on any single customer, the largest of which is likely to contribute less than 15% of total revenue in the year 2005.

Product Development and Laboratory Expansion

Cyprotex’s Cloe Screen hERG channel inhibition assay, which was validated in the Group laboratories early in 2005, is now fully integrated into the automated high throughput system. Restructuring of its metabolite profiling and identification is now well advanced. Additional offerings of both in-vitro safety toxicology and new assay development will be commercialised during the second half.

Further laboratory expansion, within the existing Macclesfield site, is already at the planning stage. This is expected to commence during the first half of 2006. Having also completed the commissioning of a major new Quadropole Mass Spectrometer installation and its automated method development now advanced, Cyprotex is anticipating the capacity, turnaround and reliability requirements of its expanding customer base into 2007 and beyond.

Customer Development

Cyprotex continues to retain existing customers while expanding its global reach. Revenue generating contracts were secured from a wide range of customers, including international names such as Roche, Serono, Novo Nordisk, Johnson & Johnson, AstraZeneca and Sepracor.

Cyprotex continues to maintain a high profile at a large number of major pharmaceutical/biotechnology conferences during 2005, including the Drug Discovery Technology & Development World Congress in Boston, USA and the World Pharmaceutical Congress in Philadelphia, USA.

Robert Morrisson Atwater

Chairman and Chief Executive Officer

17 August 2005

NOTES TO THE UNAUDITED INTERIM REPORT

1. BASIS OF PREPARATION OF INTERIM FINANCIAL INFORMATION

The financial information contained in this interim report does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The figures for the year ending 31 December 2004 have been extracted from the statutory financial statements which have been filed with the Registrar of Companies. The auditors' report on those financial statements was unqualified and did not contain a statement under section 237(2) or 237(3) of the Companies Act 1985. The accounts have been prepared in accordance with applicable accounting standards and under the historical cost accounting rules.

The principal accounting policies of the Group have remained unchanged from those set out in the Group's 2004 Annual Report and Financial Statements. The financial information is prepared on a going concern basis, which assumes that the Group will continue in operational existence for the foreseeable future.

The interim financial information has been reviewed by the Company’s auditors. A copy of the auditors’ review report is attached to this interim report.

2. SEGMENTAL ANALYSIS

The Group operates in one principal area of activity, that of providing in-vitro and in-silico ADMET/PK (Absorption, Distribution, Metabolism, Excretion, Toxicity / Pharmacokinetic) information to the pharmaceutical industry. The turnover and operating result for the periods are derived from the Group’s principal activity.

The geographical analysis of turnover by destination is as follows: