Sareum Holdings plc (AIM: SAR), the specialist structure-based drug discovery and services business, is pleased to announce that it has entered into a collaborative agreement with H. Lundbeck A/S (Copenhagen: LUN), an international pharmaceutical company with sales of approx. €1.3 Billion in 2004, to provide protein structure determination capabilities to accelerate drug discovery research at Lundbeck. Sareum will apply its skills in high throughput protein expression, purification and structure determination to explain the exact nature of the interaction of Lundbeck's potential drug candidates with their target protein receptor.

This information is invaluable in helping Lundbeck's scientists to develop new and improved therapeutics to help patients suffering from neurological conditions such as Alzheimer's disease, one of Lundbeck's key drug discovery focus areas.

In return, Sareum will receive research fees and success milestone payments, the majority of which are expected to be recognized in the financial year to June 2006. Financial terms of the agreement were not disclosed.

This is the third announcement relating to the trading update issued by Sareum on 5th January 2006 where Sareum stated that it had entered into several collaborations in late December, one of which is with Lundbeck.

Commenting on the agreement, Sareum's Chief Executive Officer, Dr Tim Mitchell, said: "We are very pleased that Lundbeck has selected to work with Sareum as their partner in protein structure determination. This is a further important collaboration that Sareum has entered into with another top 50 international pharmaceutical company, and we look forward to successful delivery of this project to Lundbeck."

Commenting on the agreement, Lundbeck's Vice President of Research, Dr. Peter Høngaard Andersen, said: "Structure based drug design is an important aspect in modern drug discovery strategies and we expect this collaboration with Sareum will enhance our Drug Discovery process. The partnership also further illustrates Lundbeck's commitment to accelerating the discovery of novel therapies for patients suffering from neurological and psychiatric diseases."

* By 2004 Global Pharma Sales

For further information:

Sareum Holdings 01223 497700
Tim Mitchell, Chief Executive Officer

Buchanan Communications 020 7466 5000
Tim Anderson, Mary-Jane Johnson

Notes for editors:

About Sareum Holdings plc

Sareum Holdings plc is a specialist structure based drug discovery and services business headquartered in Cambridge, UK. The Company was formed in August 2003 to discover new drugs for the treatment of cancer and to provide a range of drug discovery services to the pharmaceutical industry. Sareum's unique approach aims to halve the time it takes to discover new drug candidates.

Structure-based drug discovery involves the determination of a disease causing protein's three-dimensional structure. Once the structure is known, novel chemical entities are designed to 'lock-in' to the protein with the aim of reversing or arresting a disease's progression.

Sareum's approach to structure based drug discovery is to produce multiple recombinant proteins primarily through a baculovirus expression system; determine their structure using x-ray crystallography; and then use the Company's template-molecule x-ray screening technology to identify new chemical entities designed to interact with the target protein. Sareum then uses its high-throughput medicinal chemistry platform to rapidly synthesise further molecules and develop the most promising into potential drug candidates.

Sareum provides its specialist drug discovery capabilities to partners in the pharmaceutical and biotechnology industries. The Company aims to successfully deliver: Programmes for complete gene-to-candidate structure-based discovery; projects to accelerate or improve the productivity of specific activities; and drug candidates for licensing at the Phase I or Phase II clinical trials stage.

Sareum joined the AIM market of the London Stock Exchange in October 2004 and trades under the symbol SAR. For further information, please visit www.sareum.co.uk