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Reorganisation of research

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Brussels, August 26, 2004 – UCB Pharma, part of UCB Group, announced today a reorganisation of its R&D operations following its recent acquisition of Celltech. This reorganisation is designed to create research centres of excellence, located in Brainel'Alleud (Belgium), in Slough and in Cambridge (UK), and to eliminate duplication of activities. The centres of excellence will focus on antibodies and small molecules, covering the therapeutic areas of the central nervous system (CNS) pharmacology, inflammation (including allergies) and immunology. The Group will close its research facility in Boston (MA) in October 2004.

The cost of this restructuring will be much less than the synergies that should annually result from it.

Certain small molecule research previously carried out at the Boston site, primarily CNS pharmacology, inflammation and immunology activities, will be accommodated within UCB's Braine-l'Alleud (Belgium) and Cambridge (UK) research sites. The Boston site currently employs 86 people. Following this consolidation, UCB Pharma's R&D will consist of more than 1,400 people, including those at the Slough research site in the UK.

Dr Melanie Lee, Head of R&D at UCB Pharma, commented: “Whilst the quality of scientific research at the Boston site has been exceptional, the enlarged R&D organisation allows us to accommodate these activities more efficiently within our research centres of excellence. This will enable us to maximise the impact of our R&D budget by redeploying financial resources to accelerate development of our promising pipeline.”

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