RNS Number:2032N
Provalis PLC
07 July 2003


For Immediate Release                                                7 July 2003


                                  Provalis plc


     Trading Update for Full Year 2003 - Sales up 49% to #14.0m (Unaudited)


Provalis plc (LSE:PRO; NASDAQ:PVLS), the Medical Diagnostics and Pharmaceuticals
Group, is pleased to announce key highlights to trading for the year ended 30th
June 2003.

  * Group sales up 49% against last year to #14.0m - in line with brokers'
    forecasts

  * Diagnostics sales rose significantly from last year to #3.1m driven by
    Glycosal sales in USA

  * Healthcare Division sales grew 33% from last year to #10.9m led by sales
    of Diclomax and the commencement of a sales business in Ireland

  * G5 development continues to progress, with FDA clinical trials of the G5
    diabetes test scheduled for the autumn, and immediate expansion of the R&D
    effort to develop additional diagnostic tests for use on the G5 platform

  * Cash position for the Company healthy at #6.6m, with lower on-going cash
    burn.  Additional cash contributions of up to #3.5m are still due from the
    Falk distribution deal over the next 18 months

Performance

In the Medical Diagnostics Division, sales of Glycosal(R), the Group's diabetes
diagnostic product, have progressed well in the USA with a major growth in both
instrument placements and cartridge test usage. Sales for the division in the
year were #3.1m, compared with #0.9m in 2002.  The first half of the year was
dominated by the orders for Glycosal by Abbott Laboratories and in the second
half by the penetration of the product into the physician 'point of care' market
by Provalis' distributor Cholestech Corporation.

The development programme for the Group's new diagnostics technology, code named
'G5', continues to progress with the manufacture of instruments now being
initiated at the Company's commercial assembly partner in the Far East and the
moulding of its test cartridge in Europe. Further user testing will be
undertaken until the autumn before initiating the clinical trials prior to
submission of the FDA 510K home use application in the USA.

Pharmaceuticals sales in the Healthcare Division were #10.9m, up 33% on the
previous financial year. This reflects the first full year contribution of
Diclomax(R) (#6.4m), the growth in sales of the other existing products and also
the first contribution from Provalis' Irish sales business which began trading
in February 2003.  The contribution of #0.5m from sales in Ireland more than
compensated for the impact of a two month period of de-stocking by wholesalers
in the UK which lowered sales in January and February.

The Company closed the year with #6.6m in cash (2002, #10.4m), a healthy
position.  Cash burn is now significantly lower than in 2002 due to stopping all
significant expenditure within the Group's vaccine R&D division and higher
product sales.  Cash has been further boosted by receipt of initial #1.5m cash
contribution as a result of the revised distribution agreement with Dr Falk
Pharma, with up to a further #3.5m due by January 2005.

Phil Gould, CEO of Provalis, commented: "Provalis is now nearing the end of the
transition it began a number of years ago from a research orientated Company to
a customer led, commercially successful Group with its own products and highly
focused product development programmes. 2003 has been a turning point for the
Group.   The year has seen a strong growth in sales, particularly in Medical
Diagnostics, which has been led by the sales of Glycosal in the USA.  Our
pharmaceuticals business continues to grow, buoyed by sales of Diclomax and the
successful introduction of our products to the Irish market.  With this
commercial focus, lower cash burn and healthy cash position, Provalis continues
to progress towards financial self sufficiency."

The Company's audited full year 2003 figures and an overview of trading
expectations for 2004 will be presented in September 2003.

                                      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
success of the Group's research and development strategy; uncertainties related
to future trial results and the regulatory process; the execution and success of
collaborative agreements with third parties; the impact of future laws,
regulations and policies; 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 833 463
Mr Lee Greenbury, Provalis plc                               Tel:  01244 833 402
Lisa Baderoon, Buchanan Communications                       Tel:  020 7466 5000


Notes to Editors

Provalis plc (LSE:PRO and NASDAQ:PVLS) is a Healthcare group 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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