Cambridge, UK and Abbott Park, IL - Cambridge Antibody Technology (LSE: CAT;
NASDAQ: CATG) and Abbott (NYSE: ABT) today announce that they have reached an
agreement regarding royalties payable to CAT under a licence agreement between
the parties. Accordingly, the hearing scheduled to start this week in the Court
of Appeal will not take place.

Paul Nicholson MD, Chairman, CAT, commented: We are very pleased to have reached
resolution of this issue with Abbott. We can now concentrate fully on CATs
business going forward. CAT is already benefiting from Abbotts successful
development and marketing of HUMIRA (R) and we are hopeful of future success
with ABT-874.

Jeffrey M Leiden MD PhD, president, Abbott Pharmaceutical Products Group, said:
We are pleased to find a solution that benefits both companies and resolves our
differences.

Under the terms of the settlement agreement:

- Abbott will pay CAT the sum of US$255 million, which CAT will pay to its
licensors, the Medical Research Council (MRC), Scripps Institute and Stratagene,
in lieu of their entitlement to royalties arising on sales of HUMIRA from 1
January 2005 onwards.

- Abbott will also pay to CAT five annual payments of US$9.375 million
commencing in January 2006, contingent on the continued sale of HUMIRA. US$2
million from each of these payments will be payable to CATs licensors.

- Abbott will pay CAT a reduced royalty of 2.688 per cent from approximately 5.1
per cent on sales of HUMIRA from 1 January 2005. CAT will retain all of these
royalties. CAT will also retain royalties received from Abbott in respect of
sales of HUMIRA up to 31 December 2004, net of approximately £7.6 million which
will be paid to its licensors. CAT will refund to Abbott approximately £9.2
million for royalties paid from 1 January 2005 through 30 June 2005.

- Abbott will also pay CAT a reduced royalty of 4.75 per cent on any future
sales of ABT-874, from which CAT will pay a portion to the MRC and other
licensors (according to CATs 1997 agreement with the MRC).

- Abbott will capitalise and amortise the upfront payment, net of the refund,
and annual payments to CAT through the term of the agreement. When this
amortisation is combined with the revised royalty rate of 2.688 per cent, the
blended effective royalty rate is reduced from the approximate 5.1 per cent as
previously instructed by the Court.