Press Releases

Proposed placing of 23,076,924 shares at 52 pence per share raising £12 million

Cambridge, UK, 3 May 2007 – Intercytex Group plc (the “Company”) (ICX.L), the cell therapy company focused on aesthetic medicine and tissue repair, today announces its intention to raise £12 million in a Placing of new ordinary shares to institutional investors in the UK and continental Europe.

The Placing is conditional upon, inter alia, the approval of shareholders. A circular convening an EGM of the Company, which is expected to take place on 29 May 2007, is being posted to shareholders today.

Placing Highlights

• Intercytex to raise £12 million through the placing of 23,076,924 Placing Shares at a Placing Price of 52 pence per share. The Placing is being fully underwritten by Piper Jaffray and the shares have been placed with new and existing institutional shareholders further widening the institutional shareholder base.
• The Placing Price represents a discount of 13.3% to the closing mid-market price of 60 pence per ordinary share as at 2 May 2007, the latest practicable date prior to the announcement of the Placing.
• The net proceeds of the fundraising will be approximately £11.4 million.
• Intercytex intends to use the funds raised from the Placing as follows:
  • launch of its facial rejuvenation product, Vavelta, in the UK;
  • complete the Phase III trial for ICX-PRO and file a BLA;
  • continue the Phase II programmes for Vavelta and ICX-TRC (for male pattern baldness); and
  • conduct further trials for ICX-SKN (skin graft replacement).
• The necessary authority required to issue and allot the Placing Shares pursuant to the Placing will be sought at an Extraordinary General Meeting convened for 11.00am on 29 May 2007.

Commenting on the proposed Placing, Nick Higgins, Chief Executive of Intercytex, said: “ This fundraising is a significant step forward for Intercytex. It follows an extremely busy and successful period in the history of the Company, in which we have demonstrated our ability to deliver on the objectives set out at IPO by taking the products in our pipeline to the next stages of development. The funds raised will allow us to complete a number of key value-driving steps, including the market launch of our first product, Vavelta, for facial rejuvenation and the completion of the Phase III trial for ICX-PRO.”

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Enquiries

Notes for Editors

Intercytex is a cell therapy company which is focused on aesthetic medicine and tissue repair. It is using its proprietary expertise in cell therapy to develop products that harness the innate ability of human cells to regenerate and repair the body.

Intercytex has four products in development:

• Vavelta, a facial rejuvenation product to be launched in the second half of 2007
• ICX-PRO, designed to stimulate active repair in chronic wounds - in a Phase III trial
• ICX-TRC, a hair regeneration product – in a Phase II trial
• ICX-SKN, being developed as a durable and robust skin replacement – in a Phase I trial.

All Intercytex’ products are derived from unmodified, human cells.

Intercytex commenced operations in 2000 and currently employs around 75 staff. In addition to its head office in Cambridge, UK, it has a GMP clinical production facility with research and development laboratories in Manchester, UK. Additional laboratories are located in Boston, USA.

Intercytex’ shares trade on AIM, a market of the London Stock Exchange, under the ticker symbol ICX.L.

Piper Jaffray Ltd. is nominated adviser and broker to the Company for the purpose of the AIM Rules. Piper Jaffray Ltd., which is authorised and regulated in the United Kingdom by the Financial Services Authority and is a member of the London Stock Exchange, is acting exclusively for the Company in relation to the Placing. Piper Jaffray Ltd. is not acting for any other person in connection with the matters referred to in this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Piper Jaffray Ltd. or for giving advice in relation to the matters referred to in this announcement.

This press announcement has been issued by the Company and is the sole responsibility of the Company. This announcement has not been approved by Piper Jaffray Ltd. for the purposes of section 21 of the Financial Services and Markets Act 2000.

This announcement does not constitute or form part of any offer to sell or issue or the solicitation of any offers to acquire, purchase or subscribe for shares in any jurisdiction. This announcement is not an offer of securities for sale in the United States. The new ordinary shares to be issued have not been and will not be registered under the United States Securities Act of 1933 (as amended) (the “Securities Act”) or the securities laws of any state or other jurisdiction of the United States and new Ordinary Shares may not be offered or sold, directly or indirectly through CREST or otherwise within the United States, absent registration under the Securities Act or an exemption from registration. The Company does not intend to register any of its securities in the United States or to conduct a public offering of securities in the United States.

This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in any jurisdiction. Copies of this announcement are not being and must not be mailed or otherwise distributed or sent in or into or from the United States, Canada, Australia or Japan and any person receiving this announcement (including custodians, nominees and trustees) must not distribute or send it in or into or from the United States, Canada, Australia or Japan.

The delivery of this announcement shall not under any circumstances create any implication that there has been no change in the affairs of the Group since the date of this announcement or that the information in it is correct as of any subsequent time.

This announcement may contain forward-looking statements that reflect the Group’s current expectations regarding future events, including the clinical development and regulatory clearance of the Group’s products, the Group’s ability to find partners for the development and commercialisation of its products, on the Group’s liquidity and results of operations, as well as the Group’s future capital raising activities. Forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors, including the success of the Group’s strategies, the applicability of the discoveries made therein, the successful and timely completion of clinical studies, the uncertainties related to the regulatory process, the successful integration of completed mergers and acquisitions and achievement of expected synergies from such transactions, the ability of the Group to identify and consummate suitable strategic and business combination transactions.