DOUBLE SUCCESS FOR CAMBRIDGE COMBINATORIAL

Successful Research Collaboration and Expansion of Facilities to Support New Business

Cambridge, UK … Cambridge Combinatorial Ltd, a wholly owned subsidiary of Oxford Molecular Group plc (London Stock Exchange: OMG), today announced that it has completed delivery of library compounds in the Group's collaboration with Dainippon Pharmaceutical Co. Ltd., a major Japanese pharmaceutical company, and that it is doubling the size of its laboratory facilities to service new contracts following a year of successful new business development.

The collaboration between Oxford Molecular Group's Collaborative Discovery Division, Cambridge Combinatorial and Dainippon began in June 1997. Under the terms of the agreement, Cambridge Combinatorial committed to synthesising novel targeted libraries of compounds for screening against a nominated biological target selected by Dainippon. Oxford Molecular Group's molecular modeling and drug design expertise was used in the design of the library. Cambridge Combinatorial also provided consultancy services to Dainippon to assist them in establishing a combinatorial chemistry unit in Japan which included Dainippon scientists working in Cambridge Combinatorial's laboratories in Cambridge. All objectives during this phase were successfully achieved.

As a result of signing a number of new collaborations since the Company was formed in February 1997, Cambridge Combinatorial is now expanding its facilities at the Merrifield Centre in Cambridge, UK.

'The last year has been very successful for Cambridge Combinatorial, culminating in the need for us to double the size of our laboratory facilities to service the increasing number of contracts we are securing in Europe, USA and Japan. The collaboration with Dainippon illustrates our ability to deliver the world class chemistry we promise," said Dr Allan Marchington, Chief Executive of Cambridge Combinatorial.

Dr Mishio, Director of the Department of Chemistry at Dainippon, added, 'Access to novel combinatorial chemistry libraries is increasingly important in our discovery efforts and we are pleased that Cambridge Combinatorial has attained the standards of excellence we demand. In addition, the collaboration has allowed us to gain an extensive understanding of the strategy and methods of combinatorial chemistry.'

For further information, please contact:
Cambridge Combinatorial
David T Phillips, Vice-President, Business Development
Tel: +44 1223 722400

Dainippon Pharmaceutical Co. Ltd.
Dr Mishio, Director of the Department of Chemistry
Tel: +81 6203 5321

HCCoDe Facto Group ·De Facto Group plc
Michaela Mahon/Chris Gardner, HCCoDe Facto Group ·De Facto Group plc
Tel: +44 171 496 3300

Notes to editors

Cambridge Combinatorial Limited
Cambridge Combinatorial Limited provides world-class, innovative chemistry services to accelerate discovery and process research, servicing the pharmaceutical, agrochemical and biotechnology industries. The Company is a wholly owned subsidiary of Oxford Molecular Group plc.

Oxford Molecular
Oxford Molecular is a worldwide provider of information technology and drug discovery research services to the pharmaceutical, biotechnology and chemical industries. Headquartered in Oxford, England, the company also has operations in eight US cities as well as sales offices and agents around the world. The company supplies desktop and enterprise-wide software solutions that support research across the entire discovery process, including target identification, lead identification and optimization, molecular modeling and physico-chemical property prediction. Oxford Molecular's drug discovery research services offer an integrated, highly cost-effective solution for accelerating drug discovery utilizing teams of experienced pharmaceutical researchers who use state-of-the-art technologies to develop novel targets and advanced screening capabilities, design novel active compounds and synthesize high quality compounds using combinatorial chemistry.

Dainippon Pharmaceuticals Company Limited
Dainippon Pharmaceutical (Headquarters: Osaka, Japan) was founded in 1897 and its revenues for the year ended March 31, 1998 were 137.5 billion Japanese Yen principally generated from sales of pharmaceutical products. The Company is making efforts to develop pharmaceutical products useful for therapy world-wide and has developed and marketed many products originated from its own research such as new quinolone antibacterials, ACE inhibitors and antiepileptics. The Company's product range includes antibacterial, cardiovascular and neurological drugs.