Slough, UK, 31 August 2004 - Xenova Group plc (London Stock Exchange: XEN;
NASDAQ: XNVA) announced today that it has sold its manufacturing facility in
Edmonton, Canada, to QSV Biologics Ltd (QSV) for C$7.0 million (£2.9 million).

The consideration comprises an initial payment of C$5.0m in cash payable upon
completion, and further deferred consideration of C$2.0m payable in two equal
secured promissory notes maturing 12 and 18 months following completion.  The
proceeds from this disposal will be used to fund expenditure relating to the
Group's prioritised programmes.  Net assets disposed as part of the transaction
amount to C$6.6 million (£2.7 million).

In addition to the sale of the facility, terms have also been agreed for a
manufacturing and supply contract with QSV for TransMIDTM which is presently
under development in Phase III clinical trials.  The annualised reduction in net
operating expenses as a result of the disposal, ignoring the impact of the
manufacturing contract, will be approximately £1.8 million.  All of the   Xenova
employees, in total 30, transferred to QSV upon completion, including those
involved in the production of TransMIDTM .

David Oxlade, Chief Executive Officer said, 'We are very pleased to have reached
this agreement with QSV.  The sale of this facility is the third disposal
announced so far this year and brings to an end the current plans to release
facilities.  The manufacturing contract provides us with security over  the
production of our lead drug TransMIDTM which recently entered Phase III clinical
trials.'

Slough, UK, 31 August 2004 - Further to today's RNS announcement regarding the
disposal of its manufacturing facility, the company is in late stage discussions
regarding the disposal but these discussions have not yet finally concluded.  A
further announcement is expected imminently.