BFN Biofusion

RNS Number:0301C
Biofusion PLC
14 August 2007


For immediate release                                             14 August 2007


                                 BIOFUSION PLC
                         ("Biofusion" or "the Company")

           Q CHIP SUCCESSFULLY COMPLETES #2 MILLION PLUS FUND RAISING

Biofusion plc (AIM: BFN), the university IP commercialisation company that turns
world class research into business, is today pleased to note that Q Chip Ltd ("Q
Chip"), one of Biofusion's Cardiff University partnership spin-out companies, a
leading developer of micro-encapsulation solutions, has announced the successful
completion of a significant investment funding round from new and existing
shareholders, including Biofusion.

Q Chip, which is based at Cardiff Medicentre located in the grounds of
University College Hospital Wales, raised in excess of #2 million from this
latest round. Biofusion has invested #125,000, and as a consequence Biofusion
now holds a 10% stake in Q Chip.

Alongside Biofusion and other existing shareholders, including E-Synergy's Early
Growth Fund and individual shareholders such as Jon Moulton (also Managing
Partner of Alchemy Partners), Q Chip welcomes a number of new names to its
shareholder register. These include the Geneva headquartered Forum des
Entrepreneurs, a high net worth group of angel investors, London based
Sustainable Technology Fund and Finance Wales plc.

Earlier this year the Q Chip launched its unique ReaX(TM) Lab-in-a-Bead product
portfolio the first customised bead-based, ready assembled reagents to hit the
DNA testing market. ReaX(TM) simplifies Polymerase Chain Reaction (PCR), a
widely used laboratory technique for tasks such as blood testing, the diagnosis
of diseases and the identification of genetic fingerprints. ReaX(TM) has several
advantages over existing approaches. It improves reliability by eliminating
basic handling errors, allows untrained laboratory staff to conduct DNA testing
and removes PCR from the confines of the laboratory environment. Combined with
reductions in the time involved in setting up PCR analysis, estimated by Q Chip
at up to ninety percent, ReaX(TM) represents a significant opportunity to
capture productivity and quality improvements in the approach to PCR.

Commenting on the fundraising David Baynes, Chief Executive of Biofusion, said 
"We were delighted when we acquired our position in Q Chip at the time of our IP
commercialisation deal with Cardiff University. Q Chip provides convincing
evidence of the quality of investment propositions arising from its world class
research base. Q Chip is conducting pioneering work on PCR and it has a clear
view of where it is going to take it. We are excited at the prospect of helping
it with the financial fuel needed to execute. This deal represents the first of
a number of investments where we expect to collaborate with Finance Wales. It
clearly demonstrates the value of our relationship and the prospects for future
wealth creation opportunities for the Welsh economy."

"There has been a very healthy appetite to participate in this round amongst
existing and new investors. We have taken great satisfaction as the offer was
considerably over-subscribed" commented Mark Barry, Q Chip's Chief Executive
Officer. "Q Chip already has strong management and board foundations in place.
Now it has the currency to accelerate the development of our products and sales
and marketing channels and add new production infrastructure."

Since it was founded in 2003, Q Chip has emerged as one of Wales' most exciting
life science prospects, benefiting from support from Welsh Assembly Government
schemes such as SMART (Dr David Williams) and Relay (Dr Sharon Thomas)  and
David Pascoe of the Medicentre.

The participation of Finance Wales in the investment round signals its first
deal as part of a partnership with Biofusion. Steve Smith, Director of
Development Funding at Finance Wales, said: "Q Chip reflects Finance Wales'
commitment to investing in high growth, knowledge-based businesses and marks our
first syndicated investment with Biofusion. Q Chip displays all the key
attributes that we look for - pioneering technology, strong IP, a talented
management team and clear routes to market with a realistic exit strategy.

"Supported by the Wales Spinout company programme, Q Chip is also typical of the
type of company that we are targeting under our investment strategy with a
commitment to early stage development funding."

For further information please contact:
Biofusion                                                    +44 (0)114 275 5555
David Baynes, CEO

Buchanan Communications                                      +44 (0)20 7466 5000
Lisa Baderoon / Mary-Jane Johnson / Catherine Breen

Nomura Code                                                  +44 (0)20 7776 1200
Phil Walker / Clare Terlouw

About Biofusion

Biofusion was established in 2002 to commercialise university-generated IP.
Biofusion has signed long term agreements with two of the UK's top ten research
intensive universities (University of Sheffield and Cardiff University) giving a
combined R&D spend attributable to Biofusion of approximately #114 million a
year. The Company has a portfolio of 23 spin-out companies.

Biofusion's first agreement was a ten-year exclusive arrangement with the
University of Sheffield for the commercialisation of IP owned by the University
in the area of medical life sciences. Biofusion has shareholdings in a portfolio
of 16 Sheffield University spin-out companies including Asterion, Axordia,
Celltran, Lifestyle Choices, Diurnal and Phase Focus. The University of
Sheffield was ranked 5th in the UK for the quality of its life sciences research
and will be spending an estimated #0.5bn of research funding over the lifetime
over the life of the Sheffield Agreement.

In January 2007, Biofusion completed a long-term exclusive agreement with
Cardiff University, to commercialise 100% of all Cardiff University's
research-generated IP.  Biofusion has shareholdings in a portfolio of seven
Cardiff University spin-out companies including Abcellute, Q-Chip and Cardiff
Protides. Cardiff University was ranked 7th in the UK in the most recent
research rankings and will be spending over #1.0bn of research funding over the
lifetime over the life of the Cardiff Agreement.


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