Press Release

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Osmetech, the developer of medical diagnostics devices, has secured initial sales in excess of $700,000 for Osmetech OPTI blood gas analyser instruments and consumables to customers in China in its first month of ownership following acquisition of the product line.

OPTI portable instruments incorporate optical sensors for blood gas, electrolyte and metabolite analysis and can aid in the monitoring of the treatment of severe acute respiratory syndrome (SARS).

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Notes to Editors

Osmetech plc

* Osmetech's strategy is to build a healthcare diagnostics business in the fast growing near patient testing and point of care markets. It has two product focuses, the OPTI product line of blood gas analysers and its proprietary e-nose technology.

The OPTI Business

* The OPTI business, acquired from Roche Diagnostics in April 2003, is focused on portable instruments incorporating optical sensors for blood gas, electrolyte and metabolite analysis. These are primarily set in the emergency room and cardiac monitoring hospital settings.

* The Osmetech OPTI™ CCA is very effective as a fast and accurate method for measuring the pH/blood gases, oxygen saturation, electrolytes and acid-base balance during the treatment of SARS patients. This can be especially useful in cases where a ventilator or supplemental oxygen therapy must be employed to aid in patient treatment.

* While no definitive diagnostic test is currently available for SARS, the Osmetech OPTI's test panel can be effectively utilised to detect blood gas variations that frequently occur in SARS patients. The onset of hypoxemia is usually apparent in the latent stages of the illness. It is important to closely monitor these critical blood gas parameters and quickly adjust treatment as needed for optimal outcome of SARS infected patients.

* The OPTI business has established market positions throughout the world with an existing customer base of over 4,000 instruments already in use, with approximately one-third in the US. Revenue is generated through sales of new instruments and ongoing repeat sales of proprietary reagents to facilitate analysis.

* The OPTI analysers utilise a sensor technology based on optical fluorescence sensors and the process of optical reflectance. The major advantages of this technology are its reliability and stability, which makes the technology superior to electrochemical based systems.

Osmetech's e-nose technology

* Osmetech's e-nose technology is based around an array of conducting polymer sensors that are designed to detect ("sniff") the volatile components emitted by bacteria as they metabolise. The sensors can therefore screen patient samples and test for the presence of infection-causing bacteria.

* The Company is currently focusing its e-nose IP development on sensors that can detect bacteria associated with a number of healthcare applications in the near patient and point of care testing markets.

* On 22 November 2001, Osmetech announced that it had received FDA approval for its UTI sensor product. This was the first time the FDA had approved e-nose technology for use in the healthcare diagnostic industry.

* On 29 January 2003, Osmetech announced that it had received FDA approval for its bacterial vaginosis (BV) sensor device. This sensor is now being incorporated into a new integrated point of care device for diagnosing and differentiating between the most prevalent and clinically important vaginal infections, including chlamydia and gonorrhea.