RNS Number:6047J
Osmetech PLC
03 April 2003


                          Osmetech plc ("the Company")

                           Completion of Acquisition

Osmetech, the developer of medical diagnostics devices, is pleased to announce
that the acquisition of the assets of the Atlanta-based 'OPTI' product line of
blood gas analysers owned by Swiss healthcare company Roche Diagnostics
("Roche") was completed yesterday.

The net consideration is approximately $2.5 million. Osmetech is paying $3.5
million, subject to adjustment for final inventory levels, over a 12-month
period and Roche is investing $1 million in Osmetech by way of a subscription.

The Company yesterday issued 21,821,422 Ordinary Shares of 1p each ("Ordinary
Shares") to Roche at an average price of approximately 2.8p. This represents
approximately 4.4% of the current issued ordinary share capital. Application has
been made for such shares to be admitted to trading on AIM and it is expected
that trading in the Ordinary Shares will commence tomorrow, 4 April 2003.

James White, Chief Executive of Osmetech said,

"Today Osmetech has moved from pre-revenue to a business with a robust revenue
stream and established product portfolio. We now have a strong presence in the
US market where Osmetech is looking to sell its integrated vaginal infection
product and we have secured an experienced team with a track record of
successfully driving products from development through to revenue.

"This acquisition brings forward Osmetech's profitability timescales and
enhances our ability to implement our product development strategy. We are
pushing ahead with the development and launch of the integrated vaginal
infection product based upon our innovative electronic nose technology."



                                      Ends

Enquiries:
Osmetech plc

James White, Chief Executive                            01270 216 444
Bell Pottinger Financial

Matthew Moth                                            020 7861 3882

Charles Reynolds                                        020 7861 3871



Notes to Editors:

Osmetech plc

  * Osmetech's strategy is to build a healthcare diagnostics business in the
    fast growing near patient testing and point of care markets.

  * Osmetech's e-nose technology is based around an array of conducting
    polymer sensors that are designed to detect ("sniff") the volatile
    components emitted by bacteria as they metabolise. The sensors can therefore
    screen patient samples and test for the presence of infection-causing
    bacteria.

  * The Company, which is based in Crewe, is currently focusing its e-nose IP
    development on sensors that can detect bacteria associated with a number of
    healthcare applications in the near patient and point of care testing
    markets.

  * On 22 November 2001, Osmetech announced that it had received FDA approval
    for its UTI sensor product. This was the first time the FDA had approved
    e-nose technology for use in the healthcare diagnostic industry.

  * On 29 January 2003, Osmetech announced that it had received FDA approval
    for its bacterial vaginosis (BV) sensor device. This sensor is now being
    incorporated into a new integrated point of care device for diagnosing and
    differentiating between the most prevalent and clinically important vaginal
    infections, including chlamydia and gonorrhea.

The OPTI Business


  * The OPTI business is focused on portable instruments incorporating optical
    sensors for blood gas, electrolyte and metabolite analysis. These are
    primarily set in the emergency room and cardiac monitoring hospital
    settings.

  * The OPTI business has established market positions throughout the world
    with an existing customer base of over 4,000 instruments already in use,
    with approximately one-third in the US. Revenue is generated through sales
    of new instruments and ongoing repeat sales of proprietary reagents to
    facilitate analysis.

  * An experienced team of about 50 employees under the management of Alfred
    Marek, who pioneered this business, has transferred to Osmetech.

  * Osmetech will continue the development of a new hand-held blood gas
    analyser, which will have significant technological and commercial
    advantages over other products available for point of care blood gas
    analysis. Roche has retained an option to sell and distribute the finalised
    product.

  * The OPTI analysers utilise a sensor technology based on optical
    fluorescence sensors and the process of optical reflectance. The major
    advantages of this technology are its reliability and stability, which makes
    the technology superior to electrochemical based systems.

  * The OPTI product range will continue to be developed and manufactured from
    the current facility in Atlanta, Georgia in the US.

  * A market survey of 584 larger hospitals in the USA conducted by Enterprise
    Analysis Corporation (EAC) in 2001 concluded that point-of-care blood gas
    testing is growing, with 50 per cent of hospitals using a point-of-care
    device, up from 34 per cent in 1999. Blood gas devices were used throughout
    hospitals. Operating suites and ICU were the most common locations, but the
    emergency room, general wards, cardiac catherization laboratory and even
    outpatient departments were using the devices. EAC concludes that strong
    growth will continue, with more than 60 hospitals from the sample
    considering adding blood-gas point-of-care testing within a year.



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