Wednesday, Jul 15, 1992

Xenova Receives Additional Equity Investment from Genentech, Inc.

London -- July 15, 1992 --

Xenova Limited announced today that it has received a second equity investment of #2.2 million ($4.1 million) from Genentech, Inc. (NYSE:GNE) of South San Francisco, California. This investment brings Genentech's equity investment in Xenova to #4.3 million ($8 million), of a possible total of #6.3 million ($12 million) under the terms of a drug discovery collaboration first announced in September 1991, which expanded earlier agreements established in May 1989 and December 1990. The latest investment marks the completion of a key milestone in the collaborative program.

Focusing on the discovery and development of new pharmaceuticals, the collaboration combines Xenova's screening technologies for isolating valuable small molecule drug leads from microorganisms with Genentech's proprietary technology for discovering and producing disease-specific molecular targets. The agreement covers certain molecular targets in hypertension, congestive heart disease, atherosclerosis, growth control, and inflammation and autoimmune disease.

"Our relationship with Genentech has contributed to our ability to address exciting new disease targets, and significantly broadened the pharmaceutical applications of Xenova's technology," commented Louis Nisbet, Ph.D., Chief Executive Officer of Xenova. "The equity investment will also enable Xenova to accelerate key projects in its proprietary portfolio," he added.

"This confirms our satisfaction and the progressive success of the Genentech-Xenova collaboration, which unites the scientific and technological strengths of the two companies," said G. Kirk Raab, President and Chief Executive Officer of Genentech.

Genentech, Inc. is a biotechnology company which discovers, develops, manufactures and markets human pharmaceuticals for significant medical needs.

Xenova Limited, based in Slough, England, is a privately held drug discovery company that isolates and identifies novel, biologically active small molecules from fungi and other natural biological sources using sophisticated proprietary screening technology with a capacity to perform over 1.3m screening tests per year. Xenova has collected and catalogued approximately 23,000 microorganisms, including numerous exotic fungi and bacteria. Based on this pioneering research, Xenova has entered into a total of 6 collaborations with leading international companies such as F. Hoffmann-La Roche Ltd, Warner-Lambert Company and Genzyme Corporation. Established in 1987, the Company has raised #14.2 million ($27.3 million ) to date from investors including Schroder Ventures, JAFCO, Standard Life, Biotechnology Investments Ltd, and MVH, an affiliate of Oppenheimer and Co, Inc.

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