?55,000 Secured Loans from Directors

3 August 2010

HENDERSON MORLEY PLC

("Henderson Morley" or the "Company")

(AIM: HML)

£55,000 SECURED LOANS FROM DIRECTORS  

Henderson Morley plc, the Aim quoted biotechnology company, announces that it has today agreed terms to secure £27,500 and £27,500 respectively of secured loans ("Loan(s)") from Andrew Knight and Ian Pardoe, Executive Directors of the Company ( the ''Lenders'').

Reason for the Loans

As previously announced, the Company is (and remains) in discussion with Mr Knight, Dr Pardoe and other parties to raise further funds ("Funding") to enable the Company to meet operational expenses up until the point at which the Board expects the disposal ("Disposal") of the intellectual property in relation to the Company's ICVT human portfolio to takes place .

A form of Funding currently under discussion may involve the issue of convertible loan notes and warrants to subscribers. No firm agreement has yet been reached and the final form of Funding, if concluded, may not take this form. The quantum of the Funding sought will depend upon the Board's expectation of the point at which the Disposal is expected to occur.

Given the Company's cash position, Loans totalling £55,000 have been put in place to allow the Company time to finalise further Funding arrangements.

Principal terms of Loans

The principal terms of the Loans are as follows:

Amount : Initial Loan of £55,000, with an agreement in place to advance more funds to the Company from the Lenders, as agreed between the parties, and under the same terms and conditions Term : 12 months, but repayable on demand.

Security : secured by way of a first ranking debenture over the assets, property, goodwill, uncalled capital of the Company and its subsidiaries, and a cross guarantee to be entered into by the Company and its subsidiaries;

Coupon : 8 per cent. over base rate per annum, payable monthly in arrears; increasing to 12 per cent over base rate if any interest payment is missed;

Arrangement Fee : £5,000.

As Mr Knight and Dr Pardoe are classed as "related parties" under the AIM Rules for Companies, their participation in this transaction falls to be treated as a related party transaction under AIM Rule 13. As such, Chris Pate and Professor Michael Fowler, the independent directors on the Company's Board, having consulted with the Company's nominated adviser, believe that the terms of this transaction are fair and reasonable insofar as shareholders are concerned.

KMS Therapeutics ("KMS")

The Company expects to update shareholders and the market on the status of negotiations with KMS by no later than close of business on Thursday 4 August.

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 Enquires:

HENDERSON MORLEY PLC Andrew Knight, Chairman 0121 442 4600 Chris Pate, Independent Director 0121 444 5309

BREWIN DOLPHIN CORPORATE ADVISORY & BROKING Neil Baldwin 0845 213 4726

BISHOPSGATE COMMUNICATIONS LTD Maxine Barnes 0207 562 3350 Gemma O'Hara