Cyclacel Completes £34 Million Private Placement

With a global syndicate of new and existing ivestors

DUNDEE - 14 June 2001 - Cyclacel Limited, the UK-based cancer therapeutics company, announced today the completion of a £34 million Series C private placement with a global syndicate of institutional investors.

The placement, which was oversubscribed, was led by INVESCO Private Capital, a leading private equity group based in New York. Other new investors included BankInvest Asset Management of Copenhagen, Lloyds TSB Development Capital of London, Vertex Management of Singapore, GeneChem Management of Montreal, Singapore Economic Development Board, Noble Grossart of Edinburgh, Quester Capital Management of London and Finsbury Life Sciences Investment Trust of London. Returning investors included Dresdner Kleinwort Capital, Merifin Capital, Merlin Biosciences, Northern Ventures and Scottish Equity Partners.

The net proceeds to the Company after expenses will fund operations for more than two years and will be used to advance several candidates from Cyclacel's drug portfolio into clinical trials and further expand the Company's drug discovery and development capabilities. Cyclacel was advised by Dresdner Kleinwort Wasserstein of New York. Parag Saxena, Managing Director of INVESCO Private Capital, Inc., will be joining Cyclacel's Board of Directors.

Mr Saxena said: "Cyclacel is a young UK company that has become a globally recognised player in the cell cycle field and its applications in discovering novel drugs to treat cancer. The company's strategic positioning, its technology and its experienced management team present an excellent investment opportunity. We are looking forward to helping Cyclacel achieve its potential."

Spiro Rombotis, Cyclacel's Chief Executive said: "We are delighted that an experienced group of international investors shares our belief that we can deliver on our vision of discovering novel cancer drugs based on world-class understanding of the biology underlying the disease. With one drug in the clinic, a pipeline of potential anti-cancer medicines emerging from our three drug discovery engines, and our Polgen gene target business, we are now well financed to take Cyclacel into its next phase of growth."