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Acaris announces development and licensing agreement with City Technology Limited

October 14, 2002

Cambridge, UK, 14 October 2002: Acaris Healthcare Solutions plc ("Acaris" or "the Company") today announced that it has entered into a product development and technology licensing agreement with City Technology Limited (Portsmouth, UK: "City") to develop a new range of products to detect and monitor hazardous biological agents used in industrial environments.

Under the terms of this latest agreement, Acaris will use its proprietary technology base to develop products for City's industrial market. The first products to evolve from this programme will be for monitoring allergenic agents in manufacturing environments. In the USA the Occupational Safety & Health Administration (OSHA) estimates that 11 million workers are at risk from Occupational Asthma arising as a result of high levels of allergens in the working environment. Similarly, the UK Health and Safety Commission (HSC) has set a target to reduce cases of Occupational Asthma by 30% by 2010. As part of the agreement, City has acquired an exclusive world-wide licence for these products in exchange for royalties payable to Acaris on sales and has also taken a first equity stake in Acaris.

Dr Ramin Pirzad, Managing Director of Acaris, commented: "This is a very important and exciting alliance for Acaris allowing the company to expand its technology and know-how into wider target markets, in this case, the industrial sector. This initial opportunity sees the start of a potential new pipeline of products for this sector."

Kevin Breen, CEO of City, commented: "We are very pleased to work with Acaris who have significant proprietary technology which will enable us to offer a wider range of sensors to our industrial instrumentation customers. We believe that the joint development work between City and Acaris will result in a significant contribution to industrial safety world-wide."

Charles Consultants

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