Provalis PLC
17 June 2004

For Immediate Release 17th June 2004

Provalis Files G5 Diabetes Test with FDA and builds USA Sales Team

Provalis plc (LSE: PRO; NASDAQ: PVLS), the Medical Diagnostics and
Pharmaceuticals Group, is pleased to announce that, on schedule, it has filed
the USA regulatory submission with the FDA for its G5 diabetes glycated
haemoglobin test.

Regulatory clearances are being sought in the USA for 510K and prescription home
use marketing approvals, which additionally confers CLIA waiver. These allow
the Company to fully exploit the sales potential of G5 into all physicians'
offices and also to be available eventually to diabetics for use at home.

In further preparation for the launch of the product in the USA, Provalis has
now appointed its three vice-presidents of sales to cover the central, west
coast and east coast regions. They, together with Bert Valada the General
Manager of Provalis Diagnostics (USA), have collectively over 100 years of
diagnostics sales experience in the USA and are now building the network of
national sub-distributors ready for product launch in the autumn (fall) of this
year.

Phil Gould, Chief Executive Officer of Provalis said 'We are delighted with the
high quality of the clinical data we have generated with G5 and that we have now
filed on schedule the USA regulatory submission with the FDA. With an
experienced sales team now recruited in the USA, we look forward to a successful
product launch in the autumn of this year'.

END

Provalis' Internet Website ;
http://www.provalis.com


Comment - Provalis has a market cap of 17m. At one time, when called Cortecs, the company was a medium sized pharma. During the tech bubble it lost its way and eventually had to re-invent itself. It re-directed its efforts to the diagnostic side of the market, finally producing Glycosal, a physician's office blood-testing equipment for diabetics. Another rights' issue later and it has finally filed for G5 approval (allowing for a similar test for home use). It has decided to create its own market distribution network - very risky. It is against some much larger competitors such as Axis-Shield (Afinion) which are closer to marketing their own versions of G5 - even offering multi-platform testing - but in less than 90 days Pro will also be selling its G5 product. Diabetes is a huge market, as we all know from reading about obesity etc. Pro only has to catch a small slice of this market to increase its market cap many times over. A very risky punt but it could be rewarding if you get in at the bottom. 7.125p mid-price at the time of writing.

Best of luck Nam - at least someone seems to be making a profit out of holding Provalis shares !

Thanks Pach

Got in at 1.2p, now out. Profit taken. Trebles all round.

Nice when this happens, although opportunity doesn't present itself that often.

Happy hunting.

Nam

sinking fast - what a rip -

Everything is down, but I must admit that I thought that all bad news had been factored into the price (whatever negative issues hit the general market).

is this a turning point??

Has anyone spotted anything in the press regarding the sudden sp rise? Perhaps they have resolved the short shelf-life problem?

I notice on the website that Evolution have made some statement about Pro (presumably) but without any recommendation. Anyone know any different?

2006 ESTIMATES
Broker Date Pretax Eps Dps
m p p
Nomura 15-Jun-05 SELL r (5.20) r (1.00) r - r
Numis Securities Ltd 22-Nov-05 RED + (2.00)
Evolution Securities Ltd 12-Jan-06 +


By the way, 10 MA line is about to cross 50MA line - which has (up till now) always proven very positive for my shares.

Yahoo Finance on Thursday (courtesy of Kim on adv)
London (ShareCast) - Diagnostic group Provalis shot to the top of the Techmark on news of a widening of its strategic review to include all possibilities.

"The board has widened its review to consider all strategic and funding options available to the group and how best to maximise value for shareholders," chairman Frank Harding said.

'In advance of the outcome of this strategic review, the board is in the process of significantly reducing the group's cash expenditure in the short and medium term. It has already cut the US and central cost bases substantially," the statement added.

Finally, some news about future financing of In2it.

Provalis chairman, FD to step down; sells assets of health unit for 10.5 mln stg
AFX


LONDON (AFX) - Provalis PLC said its chairman, Frank Harding, and finance director, Peter Bream, are to step down and will replaced by non-executive director Alan Aikman and director of finance Mark Keen respectively.

The company also said it has agreed to sell assets of its Provalis Healthcare Ltd unit to Kogen Ltd, an affiliate of Northern Ireland's Galen Ltd, for 10.5 mln stg.

The company said the assets include contracts, goodwill and intellectual property rights relating to Provalis Healthcare's products, and the stocks of Provalis Healthcare.

Interim CEO Peter Woodford said the disposal allowed the company to concentrate on its Medical Diagnostics division and 'provides us with a financial platform from which the group can address the technical issues associated with in2it'.

newsdesk@afxnews.com
har
COPYRIGHT

TechMark movers: Provalis rides high on sale
Wed 01 Feb 2006

LONDON (SHARECAST) - Shares in medical diagnostics group Provalis moved ahead, topping the techMark stocks after it sold its pharmaceutical division to Provalis Healthcare for around 10.5m.

The group will receive 9.5m plus around 1m for the stock of the products, payable in cash on completion, before transaction costs of about 0.5m.

Provalis said net cash proceeds of some 10m would be used primarily to repay the entire borrowings of Provalis, which are currently around 5.2m.

Telecoms carrier Thus was the major faller in the index after agreeing to buy United Utilities' telecoms arm, Your Communications, in an all-share deal.

United Utilities will receive 391m new shares in Thus, worth 58.8m. It means the utilities firm will hold approximately 22.5% in Thus once the deal is finalised.

Thus also announced that it reached agreement on the terms of a recommended cash offer for Legend Communications at 40p per share in cash valuing the business at about 11.5m.

FTSE TechMARK - Risers

Provalis (PRO) 2.38p +13.10%
Gresham Computing (GHT) 107.00p +10.88%
Aveva Group (AVV) 1,115.50p +7.36%
Filtronic (FTC) 164.00p +4.46%
Elan (ELA) 12.93 +4.27%
Medisys (MDY) 2.05p +3.80%
Dicom Group (DCM) 231.00p +3.36%
SurfControl (SRF) 585.00p +3.04%
Royalblue (RYB) 812.00p +2.98%
Axon (AXO) 317.00p +2.18%

FTSE TechMARK - Fallers

Thus Group (THUS) 14.25p -5.00%
XTL Biopharmaceuticals (XTL) 37.25p -3.87%
TTP Communications (TTC) 23.50p -3.09%
Phoenix IT Group (PNX) 325.00p -2.99%
Axis-Shield (ASD) 277.00p -2.72%
Microgen (MCGN) 74.50p -2.61%
Indigo Vision (IND) 375.00p -2.60%
GB Group (GBG) 33.00p -2.22%
Ferraris Group (FER) 90.00p -2.17%
Kingston Communications (KCOM) 67.50p -2.17%

They certainly are putting all their eggs in one basket - keeping my fingers crossed because In2it has always been the reason that I invested in Pro in the first place:

AFX
LONDON (AFX) - Provalis PLC said it is in discussions with a number of parties, which may lead to the sale of the business or the assets of its Medical Diagnostics division.

These discussions are at an early stage, it added.

The company said today's EGM approved the sale of assets of its Provalis Healthcare Ltd unit.

After the disposal, Provalis will have cash balances of

approximately 3.8 mln stg.

This cash will allow Provalis to continue resolving 'technical issues associated with in2it', and to fully pursue all available options for the Medical Diagnostic division.

newsdesk@afxnews.com
jfr
COPYRIGHT

Well I hold my hands up and admit that I called this one wrong - alth9ough see some interesting thoughts from ADV at the end.

Provalis H1 losses widen as co considers sale of Medical Diagnostics ops UPDATE
AFX
LONDON (AFX) - Provalis PLC reported widening losses for the six months to Dec 31 2005 as it said talks continue with a number of interested parties regarding the possible sale of its medical diagnostics division.

This would lead to an eventual winding up of the business after a distribution of any remaining cash, the group said.

Provalis, which has been carrying out a strategic review of its operations, also said today that Peter Woodford will be continuing as interim chief executive until the end of June at least.

Provalis sold part of its Pharmaceuticals business in February, managing to raise enough to repay its borrowings and leaving the group debt free. The resulting cash balance, of around 4 mln stg is being used to continue the resolution of technical issues associated with in2it.

The in2it analyser is the flagship product of the Medical Diagnostics business. This product carries out diagnostic tests at the point-of-care using a disposable test cartridge. Sales of in2it, whilst still continuing at a very low level, will continue to be disappointing until certain technical issues are resolved, which will take a number of months, the group said.

The group said it now believes that it is not in a position to fully exploit in2it's potential in the absence of further equity funding or borrowing facilities.

It is therefore considering a number of options for the Medical Diagnostics division including the possible sale of the business or assets, or a joint venture, licensing or partnering agreement with a third party.

If sold, Provalis said it intends to distribute the cash remaining within the group to shareholders as part of a solvent winding-up.

Provalis' first half results showed a pretax loss from continuing opeations of 3.7 mln stg, compared with a pretax loss of 3.5 mln a year earlier.

Total group revenues for the six months were 2.6 mln stg, down from 6.7 mln.

Sales in the Medical Diagnostics business were 0.4 mln stg, down from 0.6 mln in the prior year. These sales were predominantly of Glycosal, the group's first generation diagnostic test, for which demand appears to be steady.

The loss for the business over the period was 2.6 mln stg, a slight increase from a 2.4 mln loss in 2004 after increased manufacturing overheads in anticipation of the expected growth of in2it.

Sales in the Pharmaceuticals business were 2.2 mln stg, down from 6.1 mln after the group stopped distributing Dr Falk Pharma products and also due to lower sales of Diclomax following the introduction of a generic competitor in October 2004.

The loss for the period for this business was 1.1 mln stg compared to a profit of 1.5 mln.

ADV - courtesy of Mudbath:

1. ALL IS NOT LOST. Far from it. Do you remember the partnership agreements ,announced in 2004,regarding the development of the Provalis vaccine portfolio,with Glaxo,Chiron and Aventis Pasteur? These have the potential to provide"considerable upside for our shareholders"[PROVALIS] PLUS,"multi million dollar milestone payments AND c ommercial royalties on ANY product commercialised"[PROVALIS].This potential still remains .The directors do make brief reference to the vaccine partnerships in todays interim announcement,conveniently overwhelmed however by the deluge of BEARISH SPIN. THIS LOOKS TO ME LIKE A CLASSIC SHAKEOUT.WATCH OUT for a large buyer mopping up the stock being virtually GIVEN AWAY and watch out for A BUYOUT proposal seeking to do a favour to shareholders with an offer of circa 2 pence.THESE SHARES are on the way up.

VACCINES.The actual statement today from provalis stated"IT(Provalis)does have potential income from milestone payments and royalties".Spot the difference in tone ....Shares have already regained 33% from the days early morning low. DO NOT bail out now.(Just my view.I am a shareholder and have done very well with PRO having ditched a big holding at 14 pence before now rebuying).