'molecular' diagnostic test for infectious diseases, particularly life-threateni

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November 27, 2006 10:04 AM Eastern Time

Amphion Innovations plc Acquires 35% Stake in Manchester

Molecular Diagnostic Spin-out Company

Business Wire (press release) - San Francisco,CA

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LONDON--(BUSINESS WIRE)--Amphion Innovations plc, the developer of

life science and medical technology businesses, announces today that

it has invested £1 million in its latest Partner Company,

Myconostica Ltd, an award winning University of Manchester spin-out.

Myconostica is a company specialising in a new type of 'molecular'

diagnostic test for infectious diseases, particularly life-

threatening respiratory fungal infections, allowing much faster and

more precise diagnosis. These tests will have significant health-

care benefits, such as reducing death rates, shortening recovery

times and hospital stay, and reducing the high cost of care for

these types of patients. The Company has secured a significant

international intellectual property position in advances in

molecular diagnostics including licences from the University of

Manchester, the Public Health Research Institute (PHRI) in Newark,

New Jersey, and other leading research centres.

Amphion's investment will give it a stake of 35% on a fully diluted

basis and will allow Myconostica to further develop its products,

intellectual property, and build up its management and marketing

teams. Amphion's participation will also accelerate access to key US

markets.

Life-threatening fungal infections remain the most common cause of

infectious death in many types of acutely ill patients, for example

those who have undergone transplants or those who are suffering from

infections affecting their immune system, such as HIV. Myconostica's

tests produce results in hours, rather than the days currently

required, greatly improving the time to treatment. Clinical studies

are scheduled to start in Q1 2007 with international regulatory

approvals in the 2nd and 3rd quarters of 2007. The market size for

respiratory diagnostics for fungal infection alone is estimated to

be in excess of $100 million annually, part of a wider molecular

diagnostics opportunity. The worldwide market of molecular tests of

various sorts is expected to grow to over $12 billion by 2010.

Myconostica's founder and acting Chief Executive, Professor

Denning, commented:

" The medical need for rapid diagnosis of respiratory fungal

infections has never been so strong. Myconostica can provide a much

faster and clearer diagnosis significantly improving the time to

treat infected patients. Currently, these infections are responsible

for mortality rates of 40-90%. Other strategies, such as

precautionary treatment with antifungal drugs, can only be partially

successful in combating these infections.

Amphion CEO C.E. commented:

" In partnership with Amphion, we believe that Myconostica can become

a leading supplier of a new generation of diagnostic tools that will

provide more accurate diagnosis and in a fraction of the time

currently required. This is a great market opportunity, which will

also provide enormous benefits to patients worldwide. "

About Amphion Innovations plc

Amphion Innovations plc is listed on the AIM Exchange in London

under the symbol AMP. Amphion's business is the formation,

financing, management and development of life sciences and

technology companies, primarily in the US and UK, working in

partnership with corporations, governments, universities and

entrepreneurs seeking to commercialize their intellectual property.

On the web: www.amphionplc.com

About Myconostica, Ltd.

Myconostica is a University of Manchester spin-out company

specialising in molecular diagnostic tests for life-threatening

respiratory fungal infection. Myconostica is located in South

Manchester, and has strong links to one of the University of

Manchester's teaching hospitals, Wythenshawe Hospital, and the

Regional Mycology Laboratory. Founded by Dr. Denning,

professor of medicine and medical mycology, with assistance from

Nick Montague and UMIP, the company will soon move into offices with

excellent laboratory space. Myconostica has plans to develop

additional molecular tests once its first product has been launched.

On the web: www.myconostica.co.uk

Contact: Dietrich +44 7968283803

About PHRI:

The PHRI has just merged with the University Medical and Dental

School of New Jersey, with which is co-located to expand its mission

of delivering top quality publicly funded research in infectious

diseases. It has an impressive track record over many decades in

contributing to Public Health. It owns the molecular beacon patent

portfolio, which has been extensively licensed in many diagnostic

fields, including several FDA approved molecular tests.

On the web: www.phri.org

About UMIP

The University of Manchester Intellectual Property Limited (UMIP) is

the managing agent of The University of Manchester for intellectual

property commercialisation. UMIP's role is to enhance the scale and

quality of the University's intellectual property development and

commercialisation activities. UMIP works in highly positive

relationships with researchers, entrepreneurs, business people,

professional advisers, and investors to achieve its goals.

On the web: www.UMIP.co.uk