Genedrive Regulatory News (GDR)

Company Epistem Holdings Plc

TIDM EHP.L (AIM)

Headline Human DNA Identification

Released 5thOctober 2011

Number

Epistem Holdings Plc

("Epistem" or "the Company")

Human Deoxyribonucleic acid (DNA) Identification collaboration

Epistem (London AIM: EHP), the biotechnology and personalised medicine company, is pleased to announce today the formation of a human DNA Identification collaboration with the National Policing Improvement Agency (NPIA). Epistem and the NPIA will be evaluating Epistem's Genedrive™molecular device as part of the NPIA's ADAPT programme (Accelerated DNA Profiling Technology programme).

The NPIA provides critical national services to support frontline policing. It helps the police to save money and operate more efficiently. The NPIA will use Genedrive™ to target the 'amelogenin' sex gene and other single tandem repeats (STRs) that create the human DNA fingerprint. If trials are successful, the NPIA could use Genedrive™ to enable rapid and accurate DNA analysis at a crime scene leading to improved speed of identification, reduced cost and more efficient policing leading to a safer environment.

DNA is found in virtually every cell in the body and contains genetic information that helps determine human and physical characteristics. A person's DNA is unique thereby lending itself to be used as a means of human identification. DNA profiling examines discrete parts of an individual's DNA that vary greatly from one person to another and are derived from biological samples such as semen, saliva and blood.

Genedrive™ provides a breakthrough in molecular diagnostic testing by providing a rapid (less than 30 minutes), low cost, simple to use device with high sensitivity and specificity. Positioned as a handheld device, it brings a new 'Point of Need' approach to disease diagnosis and identification across a broad spectrum of DNA related areas from human identification for policing purposes, to pharmacogenomic use in oncology, virology, ophthalmology and the detection of infectious diseases such as TB, HIV and sexually transmitted disease. The NPIA is testing Genedrive™ for the use of DNA for policing purposes only; it will not be used to identify any health-related issues.

The ADAPT evaluation programme in the NPIA will continue into 2012, following which, if successful, it will be rolled out into a number of police forces across the UK.

For further information contact:

Epistem Holdings Plc

Matthew Walls, Chief Executive Officer ++44 161 606 7258

Peel Hunt LLP

Nominated Adviser: James Steel/Vijay Barathan ++44 207 418 8900

De Facto Financial

Mike Wort/Anna Dunphy ++44 207 556 1063

Notes for editors

Epistem is a biotechnology and personalised medicine company commercialising its expertise in epithelial stem cells in the areas of oncology, gastrointestinal and dermatological diseases. Epistem develops innovative therapeutics, biomarkers and diagnostics alongside providing contract research services to drug development companies. The Group's core expertise is focused on the regulation of adult stem cells located in epithelial tissue, which includes the gastrointestinal tract, skin, hair follicles, breast and prostate.

The National Policing Improvement Agency (NPIA) was formed in April 2007 to make a unique contribution to improving public safety. The NPIA follows the remit to improve public safety through the provision of:

▪ Providing critical national services

▪ Building capability across the police service

▪ Providing professional expertise to police forces and authorities

On 26 July 2010 the new coalition Government published the consultation document, Policing in the 21st Century: Re-connecting the police and the people. It sets out the government's vision for the most radical change to policing in fifty years.