QUOTIENT DIAGNOSTICS COMPLETES FUNDING ROUND

VCs, trade investor and Angels combine in £800,000 deal - 19 July 2005

In an agreement signed today, Quotient Diagnostics, developer of a new diabetes testing technology, has secured £800,000 of new investment from a syndicate comprising Venture Capital funds, private investors and a significant new trade partner.

The VC's are The Capital Fund LP, GEIF Ventures and Nesta. The Capital Fund is the Regional VC for London which, along with lottery-funded Nesta, is one of the company's original backers. Cambridge-based GEIF Ventures co-invests in promising early growth businesses with business angels who are members of Great Eastern Investment Forum. Angel investors, including a Cambridge contingent, are providing the final £135,000.

Joining them is British Biocell through its parent BBI Holdings Plc (LSE BBI), the Cardiff-based developer and manufacturer of diagnostic tests. BBI have agreed an option to buy a further 10% of Quotient's shares which if exercised would bring BBI's shareholding to around 22%. As part of this agreement BBI will use its expertise to help Quotient develop and distribute its diabetes assay system.

Quotient's test is for the crucial diabetes indicator known as A1c, a fraction of the protein haemoglobin. This yields a far more accurate picture of the diabetic condition over time than standard blood glucose metering, which can give an inaccurate reading due to variables such as food consumption prior to the reading being taken. Quotient's version of this test will be used in clinics and surgeries to give a rapid result (around three minutes) on the spot.

The funds will be used to take Quotient's technology, currently at the pre-prototype stage, through to final prototypes for manufacturing. The system is expected to be market ready towards the end of 2006.

Simon Harris, Quotient's Commercial Director said: "The incidence of diabetes is growing at an alarming rate. The International Diabetes Federation predicts that sufferers will grow in number from 194 million today to 333 million by 2025. If the epidemic is to be slowed down in any way, the importance of products like the rapid platform we are developing cannot be overestimated. There is a global need for tests that reduce the need for time consuming and expensive laboratory examinations. To help bring our product to market we could have no stronger partner than BBI. They have skills, products and facilities which are very complementary to our own."

Speaking about the investment, David Evans, Chairman of BBI added: "Quotient's product will be used by professional diabetes clinicians in the first instance. In the USA, the primary market, there are 100,000 registered Physicians Office Laboratories, and in each major European market there are at least 1,000 specialist diabetic clinics. The product would also have the potential to be sold into wider markets such as GP Surgeries and Pharmacies with the Home Testing market being addressed in due course. We look forward to working with Quotient to continue the development of this extremely marketable and much needed product."

For further information:

Quotient Diagnostics Ltd

David Chatterton, Chief Executive 020 8481 9016 / 07860 701890

Simon Harris, Commercial Director 07976 204855

BBI Holdings Plc

David Evans, Chairman 07740 084452

Julian Baines, Managing Director 07788 420859

About Quotient Diagnostics Ltd www.quotientdiagnostics.co.uk

Quotient is a young company (founded 2003) commercialising a patented technology for a point of care A1c test system that was developed originally at St Bartholomew's Hospital.

Current Status:

· The reagent chemistry has been accepted scientifically and has been published in several mainstream biomedical journals in the UK, Europe and USA (data available on request).

· European and USA patents have been secured.

· Five prototype instruments have been built and trials on a wide variety of samples are underway with encouraging results to-date.

· The system is intended to be market-ready during Q4 2006.

About BBI Holdings PLC (LSE: BBI) www.bbigold.com

BBI is based in Cardiff and was listed on the AIM market in April 2004. The company is involved in the development, manufacture and commercialisation of point of care diagnostics on its own account and under contract to other industry majors. These products are non invasive and are used near to patients in the clinical as well as doctor's office environment.

The company derives its income from three main areas:

· The manufacture and supply of gold colloids and conjugates where it is a recognised world leader

· The bespoke contract product development for major blue chip industry partners

· The manufacture of rapid tests, based on its gold conjugate technology, for major blue chip industry partners.

About Diabetes

Diabetes is becoming a worldwide epidemic, now affecting nearly 200 million people. It is strongly associated with obesity and increasingly affects children and adolescents. Its long term complications, which include invalidity and blindness, can prove very costly and are estimated to account for 6-8% of European and American healthcare budgets.

In the US there are currently 5 million Point of Care A1c tests a year, when the total potential market is 35-40 million. In Europe, it is expected that at least one third of A1c tests will migrate to the Point of Care if and when the right products are available.

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