PROPOSED SALE OR MERGER OF THE COMPANY

Edinburgh, UK, February 19, 2008: Ardana plc (LSE:ARA), the emerging pharmaceutical company focused on the discovery, development and marketing of innovative products to improve human reproductive health, today announces that it is seeking to sell or merge the Company in order that the value of its pipeline can be maximised.  Piper Jaffray Ltd. has been appointed to advise the Company in connection with this process.

Separately Ardana has today issued its Interim Management Statement for the period 1 October 2007 to 31 December 2007 which also details a restructuring programme to reduce the Company’s cash commitments (see separate press release).

Proposed Sale or Merger of the Company and associated restructuring

In December 2007 the Company announced the results of a strategic review as a result of which the Board has directed the Company’s efforts and resources on the high-value, nearer term opportunities in Ardana’s pipeline, such as Teverelix LA and Testosterone Cream.  Ardana has reported positive clinical results in both these product candidates during the period and believes that they both have substantial commercial potential.  Partnering discussions continue on the co-development of Teverelix LA and for the co-development and commercialisation of Testosterone Cream in the USA.  Interest has also been expressed for other assets within the Company’s portfolio of clinical products.

Following the strategic review announcement, Ardana has had consultations with its major shareholders to explore the options available to the Company to realise increased value for its pipeline. As a result of these discussions and the prevailing market conditions, the Board has concluded that shareholder value is more likely to be maximised through seeking a sale or merger partner which will be better placed to fund the Company’s extensive clinical development portfolio.

Ardana also announces a restructuring of the business to reduce the Company’s cash commitments and enhance the Company’s position in future discussions with potential sale or merger partners.  The Company operates a ‘virtual’ business model which has resulted in a low cost base such that most activity and cost is borne by the research and clinical development programmes. The specific impact of the restructuring on the Company’s clinical programme and the Company as a whole are summarised as follows:

• Teverelix LA:  the current Phase II programmes in prostate cancer and BPH have now been completed and positive preliminary results were announced last year; further planned development programmes will not be initiated; and

• Testosterone Cream:  a Phase III study in the USA commenced in 2007 and enrolment is now complete.  In addition, differentiation studies, from which positive preliminary results were announced at the end of last year, will be completed.  Further activity is on hold.

All other development, manufacturing, commercial and overhead activities will be scaled back or halted bearing in mind the Company’s contractual obligations, reducing both cash commitments and headcount.

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