NORWOOD IMMUNOLOGY LIMITED 

Letter of Intent

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 Letter of Intent for the sale of the entire issued share capital in Bestewil Holding B.V. which owns the entire issued share capital of Virosome Biologicals B.V (the Group's vaccine development business).

The Letter of Intent sets out the transaction terms that include on completion of the transaction a

cash payment, the issue to Norwood Immunology of share options and convertible redeemable 
loan notes in the acquirer, the payment of further cash on the achievement of certain development 
milestones and a share of royalties and other payments associated with vaccine development and 
commercialisation for certain of Virosome Biologicals' current development programmes.

A further announcement will be made in due course.

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