Collaboration with Eli Lilly

Physiomics PLC 17 September 2007 Collaboration with Eli Lilly Physiomics plc (AIM: PYC), the Oxford, UK based systems biology company, is pleased to announce that it has signed an agreement with Eli Lilly and Company ('Lilly') (NYSE: LLY), the global pharmaceutical company, to provide in silico simulations of cancer cellular processes in support of Lilly's cancer drug discovery research. Physiomics will deploy its modelling expertise in biological systems, in close collaboration with Lilly's global PK/PD/TS (pharmacokinetics, pharmacodynamics and trial simulation) department and oncology discovery group. The research programme will initially be focused on drugs targeting the cell cycle (the natural process of controlling cell proliferation) - a process that is frequently disrupted in cancers. Dr Christophe Chassagnole, COO of Physiomics, said: 'We are delighted that Lilly has chosen Physiomics as a partner in the systems biology field applied to our special focus area of oncology. This is a very positive step forward for Physiomics as a further major pharma company joins our growing list of partners at a time when interest in application of systems biology to pharma R&D is increasing very rapidly.' Contact Details: Physiomics plc: Dr Christophe Chassagnole, phone +44 (0)1865 784982 E-mail: cchassagnole@physiomics-plc.com Grant Thornton Corporate Finance: Philip Secrett and Colin Aaronson, phone +44 (0) 20 7383 5100 Information on Physiomics plc Physiomics plc (AIM:PYC) is a computational systems biology services company applying simulations of cell behaviour to drug development to reduce the high attrition rates of clinical trials. As 80-90 per cent of all clinical drug candidates fail to reach the market, estimates1 show that an overall ten per cent improvement in success rates could reduce the cost of one drug's development by as much as $242 million, from the current estimate of around $800 million. Physiomics develops computational systems biology models to predict and understand cancer drug efficacy from pre-clinical research to clinical development. Physiomics has created detailed mathematical models incorporating most important molecular events taking place during the human cell cycle and apoptosis processes. Physiomics developed SystemCell(R) technology, a multi- cellular environment software, which enables the simulation of population of 'virtual cells'. Physiomics, based in Oxford, UK, was founded in 2001, and floated on AIM in 2004. For further information, please visit www.physiomics-plc.com SystemCell(R) is a registered trademark of Physiomics plc 1 Tufts Center Impact Report 2002 END This information is provided by RNS The company news service from the London Stock Exchange KDNCD