Entry into Chinese Diagnostics Market

Immunodiagnostic Systems Holdings plc

Entry into Chinese Diagnostics Market

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Research & Development Agreement

Immunodiagnostic Systems Holdings plc ("IDS" or "the Company" or "the Group"), a leading producer of manual and automated specialist diagnostic testing kits and instrumentation for the clinical and research markets, today announces that it has appointed Beijing Leadman Biochemistry Technology Co, Ltd ("Leadman") as its exclusive distributor for the IDS-iSYS instrument and assays in the People's Republic of China ("China"). In addition, IDS and Leadman today announce the signing of a research and development agreement which covers the planned conversion of over 50 of Leadman's proprietary immunoassays for use on the IDS-iSYS instrument.

Leadman was established in November 1997 and is a leading developer, manufacturer and distributor of in vitro diagnostic products in China. Leadman is headquartered in the Beijing Economic-Technological Development Area where it operates its R&D centre and reference laboratory. Leadman's sales network covers 28 provinces in China, with 8 regional sales offices and over 2,000 customers. In the 12 months ended 31 December 2012 Leadman achieved revenues of CNY317.3m (c.£32.9m) and profit before tax of CNY114.8m (c.£11.9m). Leadman is listed on the Shenzhen stock exchange (Ticker: 300289).

Distribution Agreement

The distribution agreement provides Leadman with the right to market the IDS-iSYS instrument and IDS automated assays in China. Leadman will also have the exclusive right to market, in China, assays converted for use on the IDS-iSYS assays, under the R&D agreement announced today. Leadman will act as IDS's master distributor by selling IDS products directly to laboratories as well as connecting IDS products into its nationwide distribution network.

The 3 year distribution agreement will commence from the date of the China Food and Drug Administration (CFDA) approval of the IDS-iSYS instrument and the first IDS assay. It is anticipated that CFDA approval will take approximately 12-14 months.

During the period of the distribution agreement Leadman have committed to minimum IDS-iSYS instrument and reagent purchases. Over the initial 3 years this commitment could lead to over 300 IDS-iSYS instruments being placed by Leadman and its sub-distributors in the Chinese market.

Research & Development Agreement

The research and development agreement will run concurrently with the distribution agreement. Over the initial three year period the target is to convert over 50 of Leadman's proprietary immunoassays for use on the IDS-iSYS instrument. Leadman currently markets a range of immunoassays in the thyroid, tumour, fertility, cardiac, diabetes and infectious disease areas.

Leadman will distribute these converted assays in China and IDS will have exclusive rights to distribute these assays outside of China.

This collaboration with Leadman is in line with IDS's threefold strategy of developing new specialist assays, entering into new geographies with attractive growth opportunities and developing the next generation IDS-iSYS system. The R&D agreement with Leadman accelerates IDS's strategy of increasing the range of tests available on the IDS-iSYS instrument and the distribution agreement will give IDS access to one of the fastest growing diagnostic markets in the world, continuing the Group's diversification away from the USA and Europe.

Patrik Dahlen, CEO of IDS, commented:

"We are delighted to announce this broad collaboration with Leadman, a strong and well established partner for the Chinese diagnostics market. This is a major milestone in the execution of our strategy of broadening the range of assays available on the IDS-iSYS instrument and increasing our exposure to large and faster growing diagnostic markets. We look forward to working closely with Leadman in what we expect will be a very productive long-term relationship."

Guangqian Shen, Chairmen and CEO of Leadman, commented:

"We value the opportunity to collaborate strategically with IDS, a reliable and experienced developer of high performance instruments and high quality specialty assays. This collaboration will strengthen our position in China's IVD market by distributing IDS instruments with specialty assays and developing assays on the innovative IDS-iSYS platform, and helps us improve our overseas market penetration by leveraging IDS's international sales and distribution platform capabilities. We are looking forward to a long-term, firm and mutually beneficial partnership with IDS".

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About Immunodiagnostic Systems Holdings PLC

The Group operates in the in-vitro diagnostics ("IVD") market by designing, manufacturing and selling immunoassay kits as well as its automated analyser, the IDS-iSYS System. The IDS product range is used to measure or detect particular substances within a sample, thus aiding the diagnosis or monitoring of a disease or providing information for research studies.

http://www.idsplc.com