Press Release

Osmetech plc signs major commercial agreements for OPTI with IDEXX, a world leader in animal health diagnostics

Osmetech plc (“Osmetech”), the AIM-listed international diagnostics group, has entered into an OEM (Original Equipment Manufacturer) agreement to provide its OPTI blood gas analysers, customized for the veterinary field, to IDEXX Laboratories Inc. (NASDAQ: IDXX).

In a second agreement Osmetech has entered into a development and supply contract with IDEXX to create a new platform for measuring critical care parameters based on Osmetech’s proprietary optical fluorescence technology.

The contracts will be for a period of at least 10 years and will open the veterinarian market for Osmetech’s technology and products.

OPTI product sales under the OEM agreement should commence in the second half of the current financial year and should make an initial contribution to Osmetech’s overall sales revenues. The impact upon the next financial year should be significant and sales should continue to build in the medium term as the installed base of instruments expands allowing considerable consumable revenues to be generated.

The development contract represents the first stage of a commitment from IDEXX to incorporate the OPTI technology into future new product platforms, which we also believe will have a significant impact upon Osmetech’s sales revenues in the medium term.

IDEXX is a worldwide leader in the development and commercialisation of animal health diagnostic products, delivering sales of $475 million in 2003 and with a market capitalisation of approximately $1.8 billion.

James White, CEO of Osmetech said:

‘The long term commercial relationship with IDEXX should provide a substantial level of new business for OPTI both in terms of instrument sales and ongoing revenues derived from sales of our proprietary consumables.

‘This relationship is not only a further validation of the OPTI technology but also demonstrates our capacity to scale up the Atlanta manufacturing infrastructure, and benefit from providing higher volumes of top quality critical care diagnostic instrumentation.

Ends

For further information:

James White, David Sandilands
Osmetech plc 44 (207) 378 7033

Matthew Moth
madano partnership 44 (207) 378 7033

Notes to editors:

IDEXX LABORATORIES INC
IDEXX Laboratories, Inc., is a worldwide leader in the development and commercialization of innovative, technology-based products and services for veterinary, food and water applications. The Company's largest business is focused on companion animal health, combining biotechnology, medical device technology and information technology to aid veterinarians in providing better medicine while building successful practices. IDEXX Laboratories' food and water businesses are focused on employing innovative technologies to monitor production animal health and the safety and quality of drinking water and milk. Headquartered in Westbrook, Maine, IDEXX Laboratories employs more than 2,500 people and offers products to customers in over 100 countries.