The Company announces that it has placed with clients of its broker, Seymour Pierce Ellis Limited, 40,000,000 Sareum Ordinary Shares of 0.025p nominal value at a price of 0.78p per share. The funds raised will be used to expand the laboratory facilities to accommodate additional new business signed this year and provide additional working capital for the Company.

Application will shortly be made for the admission of these shares to trading on AIM with admission expected to take place on 6 November 2006.