XR11576 (MLN576) - XR11576, XR5944 and XR11612 are novel DNA targeting agents,
whose mode of action includes dual inhibition of topoisomerases I and II.
XR11576, XR5944 and XR11612 are the subject of a licence agreement with
Millennium Pharmaceuticals Inc, announced in December 2001. XR11576 entered
Phase I clinical trials in February 2002.  The open label Phase I trial is being
carried out at centres in the UK and the Netherlands and comprises multiple
ascending oral doses in patients with solid tumours. The other compounds covered
by this agreement, XR5944 (MLN944) and XR11612 (MLN612), are currently in
preclinical development.  Xenova retains responsibility for performing
development activities associated with the programme to the end of Phase II
clinical trials.  Millennium will provide funding for the programme commencing
in 2003, up to the agreed level of $20.0m (GBP12.4m).  Xenova retains
substantially all commercialisation rights for all products arising from the
collaboration outside the United States, Canada and Mexico.

DISC-GMCSF - DISC-GMCSF, an innovative immunotherapeutic vaccine, is designed as
a treatment for a broad range of solid tumours. In preclinical studies
DISC-GMCSF was shown to be effective in models of breast and colorectal cancer.
As announced in June 2002, DISC-GMCSF successfully completed a Phase I
dose-escalating safety study at three centres in the UK, in patients with
metastatic melanoma. DISC-GMCSF was found to be well tolerated, with no serious
adverse events reported.  The DISC vector was shown to be localised at the site
of injection and had not spread beyond the required therapeutic area, a key
objective of the study.

TA-HPV/TA-CIN - TA-HPV is an immunotherapeutic vaccine, which is being developed
to prevent the recurrence of cervical cancer.  The product is intended to be
used as a therapeutic vaccine alongside standard treatments, such as surgery.
The results of two physician-initiated Phase IIa trials, in which TA-HPV was
tested in patients with high-grade vulval intra-epithelial neoplasia (VIN 3),
have shown the vaccine to be safe and well tolerated, with partial responses
being shown in over 40% of cases in these studies.

TA-CIN is a recombinant fusion protein, designed as a treatment for women with
cervical dysplasia.  Preclinical studies have suggested that use of this product
together with TA-HPV results in an immune response that is significantly greater
than that observed with either product alone.  An open label,
physician-sponsored Phase II 'prime-boost' study, targeting the treatment of HPV
associated ano-genital neoplasias, began in October 2001.  Results of this trial
are anticipated during the course of 2003.

Drug Candidates - Other

TA-NIC - Designed as a treatment for nicotine addiction, TA-NIC is a nicotine
conjugate vaccine which is administered through a course of intramuscular
injections.  TA-NIC is intended as an aid to smoking cessation and has been
designed to generate anti-nicotine antibodies. The successful results of a Phase
I trial for TA-NIC, reported in June 2002, showed the vaccine to be safe and
well tolerated both systemically and locally in the 60 smokers and non-smokers
who took part in the trial, and that the vaccine generated a specific
anti-nicotine response. This is the first time such a vaccine has been tested in
man.  It is expected that TA-NIC will enter further Phase I dose escalation
trials during the course of 2003.

TA-CD - TA-CD is a therapeutic vaccine which is under development for the
treatment of cocaine addiction.  Its mechanism of action is similar to that of
TA-NIC.  A Phase IIa dose escalation trial, supported by the US National
Institute on Drug Abuse (NIDA), began in April 2002.  A Phase II 'cocaine
administration' study, which has been designed to provide a preliminary
assessment of the efficacy of TA-CD, as determined by quantative behavioural and
other measurements, is expected to begin during the course of 2003.

DISC-PRO - A prophylactic vaccine designed to prevent genital and oro-labial
herpes, DISC-PRO has completed Phase I trials. These Phase I trials demonstrated
that DISC-PRO was well tolerated and immunogenic.  We intend to secure a
corporate partner ahead of Phase III clinical trials for the further development
of this programme.

DISC-VET - DISC-VET is a programme to develop Xenova's DISC technology for the
treatment of multiple diseases in animals.  A product candidate, DISC-BHV, for
the treatment of bovine herpes virus induced respiratory disease in cattle, is
in the equivalent of Phase I clinical development in partnership with Pfizer.
Xenova's DISC vaccine technology is applicable to multiple disease targets
including diseases which affect other animal species.

Preclinical

Cancer

OX40/OX40L - OX40 is a platform technology which is capable of producing
multiple drug candidates primarily targeting cancer and autoimmune disease.
OX40 and OX40L (OX40 Ligand) are a pair of interacting cell-surface proteins. A
development and licence agreement worth up to $63.0m (GBP43.2m) was entered into
in April 2002 with Genentech for worldwide rights to develop and market
products, primarily targeting disorders of the immune system, based on Xenova's
OX40 receptor protein and anti-OX40 Ligand antibody programmes. Under this
agreement, Xenova retains all rights to the up-regulation of the immune system
using the OX40:OX40L interaction, including use in oncology and infectious
disease therapy.

PAI-Cancer - In collaboration with the Institute for Cancer Research, Xenova has
been developing an active novel inhibitor of a protein released by platelets and
the cells lining the blood vessels known as PAI-1.  PAI is an unfavourable
prognostic indicator in many human cancers and is strongly implicated in the
metastatic process.  Lilly has an option to acquire exclusive rights to develop
and commercialise PAI-1 inhibitors in the cancer field, which, if exercised,
would realise upfront and milestone payments of up to $16.5m (GBP10.0m), with
additional royalties payable on commercialised products.

MRP - Multi-Drug Resistance Protein (MRP) acts as a pump which, like the
P-glycoprotein pump, expels small molecules out of cells and thus can help
protect tumour cells from certain chemotherapeutic agents.  We are currently
carrying out a lead optimisation programme for a compound for the inhibition of
MRP to further strengthen our position in the field of multi-drug resistance.

Other

OX40 - A partnership has been established with Celltech Group plc to develop an
antibody-based product against OX40 for the treatment of autoimmune disease.
Along with OX40L, OX40 is also the subject of a development and licence
agreement with Genentech (see above).

PAI-CV - In conjunction with our partner Lilly, we have been carrying out a
research and development programme for the development of a new class of oral
anti-thrombotic drugs suitable for chronic use.  Research is focused on the
development of small molecule inhibitors of PAI-1 that are designed to enhance
the break-up of blood clots without the side-effects of bleeding associated with
other marketed anti-thrombotic drugs.  Xenova and Lilly entered into this
collaboration in 1998.

MEN-B - Xenova is currently developing a vaccine for the prevention of
meningitis caused by meningococcal group B infections.   The aim is to construct
a live attenuated vaccine, which should give good protection against all group B
strains, and which can be developed as a paediatric vaccine for universal
vaccination.  We envisage a secondary market for adolescent vaccination, and
estimate the US and European markets for both paediatric and adolescents to be
valued at about $1b.  The programme entered preclinical development in late
2002.

HIF-1 Alpha - Hypoxia inducible factor (HIF) 1 alpha is a complex molecular
structure which plays a role in gene expression, promoting cell survival.
Xenova is developing small molecule inhibitors of HIF-1 alpha, which may have
anti-cancer and anti-angiogenic activity.

Phogen:

A joint venture between Xenova and Marie Curie Cancer Care, Phogen Limited is
developing a novel technology, known as VP22, for the enhanced delivery of
gene-based therapeutics.  Phogen entered into a licensing agreement with
Genencor International Inc, worth up to GBP15.0m ($21.0m), for the utilisation
of Phogen's VP22 technology in the area of therapeutic vaccines for certain
infectious viral diseases, in August 2001.  A further research collaboration was
announced with Cell Genesys in October 2001 and a collaboration with PowderJect
Pharmaceuticals plc was announced in January 2003. Phogen intends to seek
additional partnering opportunities for its novel technologies.