RNS Number:8353H
Provalis PLC
24 February 2003


For Immediate Release                                           24 February 2003



                PROVALIS PLC - RECEIPT OF GRANT OF UP TO #0.95m

                       TO SUPPORT DIAGNOSTICS MANUFACTURE



Provalis plc (LSE: PRO; NASDAQ: PVLS), the Medical Diagnostics and
Pharmaceuticals Group, is pleased to announce the receipt of a grant from the
Welsh Assembly Government of up to #0.95m.



The grant is to be used by Provalis' Medical Diagnostics division, which
manufactures and supplies the Group's diabetes management diagnostic Glycosal,
in particular to support:-



*     the further development of the Glycosal cartridge manufacturing base
located at Deeside, North Wales; and



*     the manufacture of the Group's next generation of diabetes diagnostic
management products code named G5 and Micro G, which are intended for
prescription home use and new patient testing respectively.



Payment of the grant will be linked to capital expenditure and employment
creation by Provalis in relation to these activities.



Commenting on the grant provision Phil Gould, Chief Executive Officer of
Provalis, said, "We would like to thank the Welsh Assembly Government for
awarding us this grant, which is an acknowledgement of the significant
contribution to the local economy made by Provalis Diagnostics. The award of the
grant will ensure that our manufacturing base continues to expand and further
underpins the Group's ability to support continued growth through the
development and sale of new diabetes diagnostic products."



Welcoming the news, Assembly Economic Development Minister Andrew Davies, said:
"I am delighted that the Welsh Assembly Government has been able to assist
Provalis in their expansion. The Pharmaceutical industry is highly competitive,
and only by developing new products can a company hope to stay at the cutting
edge. I wish them every success."



Chris Farrow, Welsh Development Agency Executive Director - North Wales, said: "
Provalis is at the leading edge of medical diagnostics and we are very proud to
have such a company in North Wales. The Group's commitment to the area is well
established and this latest planned expansion strengthens its contribution to
the local economy even further."



                                      END



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



"Safe Harbor" Statement under the US Private Securities Litigation Reform Act of
1995: Statements in this announcement that relate to future plans, expectations,
events, performances and the like are forward-looking statements as defined in
the US Private Securities Litigation Reform Act of 1995. Actual results of
events could differ materially from those described in the forward-looking
statements due to a variety of factors.  Such factors include, among others: the
rate at which operating losses are incurred; the rate of net cash utilisation
within the Group and, hence, the Group's possible need for additional capital in
the short, medium and/or long term; the execution of development, licensing,
research, manufacturing and other collaboration agreements with third parties;
the progress of the Group's continuing research and development activities;
uncertainties related to future trial results and the viability of the Group's
products, which are at various stages of development; the generation of
sufficient operating cash flow by the Group's healthcare and medical diagnostics
divisions to finance the ongoing development of these businesses as well as the
Group's research and development activities; the impact of future laws,
regulations and policies; availability and level of reimbursement for the
Group's products from government health administration authorities or other
third-party payors; the Group's intellectual property position and the success
of patent applications for its products and technologies; stock market trends in
the Group's sector; the Group's dependence on key personnel; general business
and economic conditions; and other factors beyond the Group's control that may
cause the Group's available capital resources to be used more quickly than
expected.  These and other factors that could affect the Company's future
results are more fully described in its filings with the US Securities and
Exchange Commission, in particular the latest 20-F filing, copies of which are
available from the Company Secretary at the Company's registered address.



For further information:-



Dr Phil Gould, Provalis plc,  Tel:  01244 833463

Mr Lee Greenbury, Provalis plc,  Tel:  01244 833402

Lisa Baderoon, Buchanan Communications,  Tel:  020 7466 5000



Notes to Editors



Provalis plc (LSE:PRO and NASDAQ:PVLS) is a pharmaceutical company with two
operating divisions:-



*     Medical Diagnostics - develops and sells to world markets medical
diagnostic products for chronic disease management.  The division's principle
products are Glycosal and Osteosal in the areas of diabetes and osteoporosis
respectively.



*     Healthcare - sells and markets its own, and third party, branded,
prescription medicines in the UK to GPs and hospitals through its own regionally
managed sales force.  The division's principle product is Diclomax, a medicine
for use in the treatment of musculo-skeletal disorders, and it also sells
products in the areas of gastroenterology, osteoporosis, migraine and
dermatology.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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