NORWOOD IMMUNOLOGY LIMITED 

Exclusive Evaluation Agreement Signed with MedImmune 

Norwood Immunology Limited and its subsidiaries ('Norwood Immunology' or 'the Group') (AIM:NIM), the Group focused on stem cell therapies, the rejuvenation and repair of the immune system and the development of virosomal vaccines, today announces that it has signed a six month exclusive evaluation agreement for NIM's virosomal vaccine technology with MedImmune, a recognized leader in vaccine research and development. 

Under the terms of this agreement, the Group has agreed to an exclusive collaboration period with MedImmune of six months in exchange for an exclusivity fee and the reimbursement of certain costs associated with performing collaborative research programmes using certain MedImmune vaccine candidates and the Group's virosome technology. 

Richard Williams, CEO of Norwood Immunology, commented: 'This agreement is indicative of the attractiveness of the Virosomal Biological's adjuvanted virosome technology to major vaccine partners. We look to build on this second vaccine partnership with a major pharmaceutical company and anticipate seeking partners for our preclinical package for Herpes Simplex Virus (HSV) in the second half of 2008.' 

For further information please contact:

Richard Williams, Chief Executive Officer, Norwood Immunology Limited

+44 (0)7860 295153

Capel Irwin, Nicholas Marren, KBC Peel Hunt Ltd

+44 (0)207 418 8900