RNS Number:2504M
GeneMedix PLC
12 June 2003


                                 GENEMEDIX PLC

   Letter of Intent signed with Penang Development Corporation to establish
Biotechnology Company in Penang, Malaysia for the development, manufacture and
                     commercialisation of human insulin.



GeneMedix plc (LSE:GMX) and Penang Development Corporation ("PDC") today
announce the signing of a letter of intent ("LoI") under which GMX and PDC will
work together to set up a Company in Penang, Malaysia for the development,
manufacture and commercialisation of human insulin.

Under the LoI, GeneMedix would out-license its existing insulin know-how to a
newly formed Malaysian company. It will use its expertise in the development of
biopharmaceuticals and in the design, construction and operation of
state-of-the-art manufacturing facilities, to construct a facility built to
international quality standards.  The total anticipated investment of $34
million is expected to be funded by a mixture of development loans, grants and
an issue of equity in the newly formed company to local investors. PDC will make
land available, and assist in gaining access to the development loans on
attractive commercial terms and to grant funding. Both parties will work
together in bringing in local investors to the project, a process that is
already well underway.

GeneMedix will out-license its insulin know-how to the newly formed company in
return for an up-front milestone payment and royalty fee payable on sales of
bulk product. It is also intended that GeneMedix will retain a majority
shareholding in the new company.  The development of the full-scale industrial
process will be completed by GeneMedix at its own expense and transferred into
the facility, which would be scheduled for completion in mid 2005.

Paul Edwards, GeneMedix' Chief Executive Officer, commented,

"It has always been the Company's objective to set up an insulin company in
South-East Asia, to provide insulin for the Asian markets, where demand for
human insulin is anticipated to increase rapidly. We believe that the
collaboration with PDC will provide GeneMedix with an exciting opportunity to
develop this business in a region that is well suited for biotechnology. We
believe that this will create real value for our shareholders."


                                                                 12th June 2003



ENQUIRIES:

GeneMedix plc                                               Tel: 01638 663 320
Paul Edwards, Chief Executive Officer

College Hill                                                Tel: 020 7457 2020
Nicholas Nelson




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