RNS Number:1822T
M.L. Laboratories PLC
12 December 2003


Embargoed until 0700                                           12 December 2003


                         ML SIGNS AGREEMENT WITH PLIVA
                      FOR THE DEVELOPMENT OF PLIVA'S NOVEL
                         ASTHMA TREATMENT IN CLICKHALER


Innovata Biomed (IB), the respiratory division of ML Laboratories (ML) and Pliva
dd (Pliva), a rapidly growing multinational pharmaceutical company, announce
that they have entered into an agreement to develop a novel asthma medication
based on Pliva's novel steroid PLD-177 and IB's multi-dose breath-actuated dry
powder inhaler Clickhaler.

Under the terms of the agreement IB will undertake development work for which it
will receive fee income and milestone payments over the development period, the
first of which is payable immediately. In addition IB will receive royalties on
sales and will supply inhalers on commercial terms.

The development studies, which will start immediately, will be undertaken by a
joint team of scientists from IB and Pliva collaborating closely to deliver this
important programme.

Paul Ballington, Managing Director, of IB said: "This Agreement further
demonstrates the strengths of IB's products and scientists and underlines the
progress being made by IB towards achieving its goal of becoming the leading
independent provider of dry powder inhalation technologies for the delivery of
New Chemical Entity (NCE) respiratory compounds. Our partner, Pliva, has an
exciting NCE and is a recognised force in the pharmaceutical market; Pliva's
selection of Clickhaler confirms that this unique inhaler platform represents a
reliable, fast to market delivery system for new inhaled drugs.

Radan Spaventi, Pliva's CSO said: "This agreement represents a significant step
forward in the evolution of Pliva's proprietary business and complements our
existing portfolio in the field of asthma. We are pleased to be working with IB
on this exciting product that will provide the unique features and benefits of
our novel NCE, with IB's unique device. We look forward to the completion of
this program and its eventual commercialization.

PLD-177 is a representative of a new compound class and is being developed for
the treatment of asthma. The compound has a novel mode of action resembling
corticosteroid activity and selective affinity to lung tissue. Such properties
have resulted in potent activity in suppressing inflammation in pre-clinical
models for asthma and a good safety profile compared to current corticosteroids.
Phase I studies are scheduled to commence Q1 2005".

                                    - Ends -


For further information please contact::-

1. ML Laboratories PLC-

Paul Ballington
Managing Director, Innovata Biomed                                01727 837341

Stuart Sim
Executive Chairman, ML Laboratories                               01925 844700

Kevin Smith/Cass Helstrip
Weber Shandwick Square Mile                                      020 7067 0700


2. Pliva dd-

Marija Mandic
Corporate Communications Director
Tel. + 385 1 6160 355, +385 1 6120 909
Fax + 385 1 6114 413
Email: marija.mandic@pliva.hr

Ingrid Kukuljan
Corporate Communications
Investor Relations Officer
Tel. + 385 1 6120 755
Fax + 385 1 6114 413
Email: ingrid.kukuljan@pliva.hr



Note to editors:-

Clickhaler is a proven, industrialised dry powder inhaler with many established
advantages over standard inhalers. The Clickhaler has been designed to meet the
needs of patients and to satisfy the most stringent regulatory standards. The
product has achieved regulatory approval in the EU and is already marketed with
standard asthma therapies (salbutamol and beclomethasone) in UK, Ireland and
France.

IB is a leading independent provider of inhaled drug delivery technologies to
the pharmaceutical industry. IB's proven delivery technologies are already
commercialised in some markets and available for proof of principle testing as
"fast-to-market" drug delivery solutions.

ML is a pharmaceutical product development company with a track record of
successful clinical development, regulatory approval and licensing of
pharmaceutical products and a pipeline of future products targeted at specialist
markets. ML's activities are supported by a growing income stream from marketed
products it has successfully developed and licensed to other pharmaceutical
companies, which include Baxter, Shire and Celltech.

New therapeutic products in clinical development include cancer treatments, a
pain management compound prepared to enter Phase III studies, a preventative of
sexually transmitted infections, including HIV, and a phosphate binder to assist
the management of kidney failure. ML's portfolio of early stage development
projects includes unique polymer/drug molecules to provide safer and more potent
cancer chemotherapy and technologies for use in the discovery and manufacture of
biotechnology products.

In addition ML provides inhaled drug delivery solutions to the global
pharmaceutical industry through its dedicated respiratory subsidiary Innovata
Biomed.

More information about ML Laboratories PLC can be found at www.mllabs.co.uk

Pliva dd

With more than 80 years of experience in the pharmaceuticals arena, PLIVA has
become a specialty pharmaceutical company that has successfully transformed
itself into a truly international player, with operations across Europe, the US
and CEE. The company's vision is to be a research driven, fully integrated
global pharmaceutical company dedicated to providing innovative products for a
better quality of life. PLIVA is currently the largest CEE headquartered company
by sales, whose most prominent discovery is the blockbuster antibiotic
azithromycin.

More information about PLIVA can be found at www.pliva.com.



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