(AIM: SAR)

1 October 2014

SAREUM HOLDINGS PLC

(“Sareum” or the “Company”)

Promising Step in Psoriasis Drug Development

Scientists at Sareum, in collaboration with colleagues at the US research institute SRI International, have developed a novel molecule that significantly decreases psoriasis pathology in a disease model. This research has been reported in the latest edition of the Journal of Immunology*.

The potential psoriasis therapy targets members of the JAK family of kinase enzymes, which control the production of cytokines. Cytokines are signalling molecules produced by the immune system, usually in response to a danger such as invading pathogens. Cytokines responsible for psoriasis are thought to be controlled by JAK family kinases TYK2 and JAK1. Autoimmune diseases, such as psoriasis, can occur when the production of cytokines is not properly regulated and immune cells are overly activated.

In the psoriasis model system, the TYK2/JAK1 inhibitor molecule, known as SAR-20347, interrupted the psoriatic cascade of events and led to reduced activation of keratinocytes (skin cells that multiply excessively in psoriasis) and a reduction of pro-inflammatory cytokine levels.

Sareum and SRI International entered into a co-development agreement to develop TYK2 inhibitors for autoimmune and inflammatory diseases in April 2013.

* Works, M.G. et al., J Immunology (2014) 193(7) 3278-3287.

Sareum’s Chief Executive Officer, Dr. Tim Mitchell, said: “The work reported in this publication exemplifies the success of the collaboration and the quality of research by the scientists involved. I look forward to discussing these latest advances with potential licensing partners.”

Annalisa D’Andrea, Ph.D., Senior Director of Center for Immunology and Infectious Diseases in SRI’s Biosciences Division, said: “While we are still in the early stages of research, our success so far is encouraging, and we plan to pursue other autoimmune and inflammatory diseases that might be treated by TYK2 inhibition. We hope to expand our TYK2-inhibitor program to address other autoimmune diseases, such as sepsis, rheumatoid arthritis and multiple sclerosis.”

About Sareum Holdings plc

Sareum is a drug discovery and development company delivering targeted small molecule therapeutics, focusing on cancer and autoimmune disease, for licensing to pharmaceutical and biotechnology companies at the pre-clinical or early clinical trials stage.

Sareum operates an outsourced research model, working with collaborators (SRI International, the CRT Pioneer Fund and Hebei Medical University Biomedical Engineering Center) and a world-wide network of research providers.  Its research pipeline includes two programmes undergoing pre-clinical IND-enabling studies.

SKIL® (Sareum Kinase Inhibitor Library) is Sareum's drug discovery technology platform that has so far produced the Company's Aurora+FLT3, Aurora+ALK, VEGFR-3, FLT3 & TYK2 kinase cancer and auto-immune disease research programmes. SKIL® can also generate drug research programmes against other kinase targets.

Sareum Holdings plc is listed on the AIM market of the London Stock Exchange, trading under the symbol SAR. For further information, please visit www.sareum.co.uk

About SRI's Biosciences Division

SRI's Biosciences division carries out basic research, drug discovery, and drug development, and provides contract (CRO) services. SRI has all of the resources necessary to take R&D from initial discoveries into human clinical trials. SRI's product pipeline has yielded marketed drugs, therapeutics currently in clinical trials, and additional programs in earlier stages. In its CRO business, SRI has helped government and commercial clients and partners advance many drugs into patient testing. SRI is also working to create the next generation of technologies in areas such as diagnostics, drug delivery, medical devices, and systems biology.

About SRI International

Innovations from SRI International (www.sri.com) have created new industries, billions of dollars of marketplace value, and lasting benefits to society—touching our lives every day. SRI, a nonprofit research and development institute based in Silicon Valley, brings its innovations to the marketplace through technology licensing, new products, and spin-off ventures. Government and business clients come to SRI for pioneering R&D and solutions in computing and communications, chemistry and materials, education, energy, health and pharmaceuticals, national defense, robotics, sensing, and more.