SR Pharma Annual General Meeting                        

London, UK. 19 May 2003 At today's Annual General Meeting, Chairman Eric Boyle
said:

"SR Pharma retains a robust cash position and a well diversified product
portfolio. Group partnerships with other biopharmaceutical companies, coupled
with a highly experienced in-house management team, provide an appropriate
balance of risk to reward for shareholders. Moreover, SR Pharma is approaching
a critical point in its development where a number of key opportunities for
expansion are in prospect.

Review of Group Strategy

Consequently, the Board has initiated a fundamental review of the Group's
strategy. As part of the this review, I am delighted to announce that Dr. David
Hill will be joining SR Pharma as Chief Executive Officer with immediate
effect. Dr Hill's main focus will be to develop and implement a strategy that
will maximise the return on our investments and enhance shareholder value.
David brings to SR Pharma worldwide experience in commercial and organisational
development, managing companies through periods of change or transition. He has
a proven track record of developing vaccines, cancer and inflammatory disorder
products. Until recently he was CEO of Sedac-Therapeutics, a French-based
immunotherapy company.

Development through collaboration

Two phase II clinical trials are well underway for the Group's lead candidate,
SRP299. Over 90% of patients have been recruited for the first trial, which
evaluates SRP299 in the treatment of allergic asthma. This trial is on target
to report in the first half of 2004. Th e second trial, although only recently
commenced, has already recruited 25% of patients to assess the efficacy and
safety of SRP299 in childhood atopic dermatitis (eczema). Results from this
trial are expected during the second half of 2004. SR Pharma is actively
seeking to out-license SRP299 in asthma and atopic dermatitis outside Japan
where the product has been licensed to Sakai Chemical Industry Co., Ltd.

Our partners in the USA, Corixa Corporatio n , and in New Zealand, Genesis
Research and Development Corporation have made progress in clinical trials with
PVAC(tm) for psoriasis and AVAC(tm) for atopic dermatitis respectively.

The Group has recently acquired a portfolio of 250 compounds from Rodaris
Pharmaceuticals . Several of these molecules have demonstrated activity in
diabetes and in the diagnosis of pre-eclampsia. The compounds are well
characterised and exemplify our strategy of developing medicines in diseases
with well-defined immunological bases.

Finance

SR Pharma maintains a robust cash position having in excess of �7 million in
the bank at the year-end. The Group generated over �1 million of revenue during
2002, with a net cash expenditure of under �2 million. It is worth noting that
the �7 million plus year-end cash figure understates the strength of the
Group's financial position since the majority of the income recorded in 2002
was received in 2003.

Outlook

It has undoubtedly been a challenging year for the Biotech sector and this is
reflected in SR Pharma's disappointing share price . Nevertheless, the Group's
prospects remain exciting. SR Pharma has a range of products progressing
through the clinic and a number of research compounds that offer the prospect
of a unique franchise. The Group has valuable collaborations with a number of
companies and these coupled with prudent cash management have ensured
sufficient capital for the foreseeable future.

We are grateful to our shareholders and advisers for their continued support
and on behalf of the Board I would like to thank the management and staff for
their contribution over the last year."

Eric Boyle

Chairman

19 May 2003

About SR Pharma
SR Pharma plc (www.srpharma.com) was founded in 1992 and develops novel
medicines based on an improved understanding of the role played by the immune
system in combating disease. The company's proprietary technologies are the
source of a number of product developments. SR Pharma is currently evaluating
SRP299 and AVAC(tm) for the treatment of asthma and atopic dermatitis (eczema).
The company is also investigating SRL172 as a vaccine adjuvant in cancer and
infectious diseases. These products enhance the immune responses needed to
combat cancer and infection, while regulating those that mediate allergies.

For further information please contact:
Steeve Lamontagne, SR Pharma plc
Tel: +44 (0) 20 7307 1628
Email: s.lamontagne@srpharma.com



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