Further Letter of Intent

16 February 2010

HENDERSON MORLEY PLC

(AIM: HML)

FURTHER LETTER OF INTENT

The Board of Henderson Morley plc ("Henderson Morley"), the AIM quoted biotechnology company, is pleased to announce that it has received a Letter of Intent ("LOI"), from a specialist therapeutic drug development company in respect of the intellectual property rights (IPR) of Henderson Morley's ICVT portfolio, specifically the Recurrent Respiratory Papilloma ("RRP") indication. This LOI is additional to the LOI received by the Company in 2009 (see announcement 8 October 2009).

The proposed sale of this IPR is still subject to further negotiation and it is anticipated that a decision acceptable to each party will be completed within approximately 45 days. The specialist therapeutic drug development company was established by a number of former Merck Generics Senior Executives including Hank Klakurka, former CEO, Steve Self, former Global R&D Director and Martin Marino, former Chief Legal Counsel. This company's model takes high potential drug candidates through clinical trials, regulatory and into production and sales. It currently has four development projects in its pipeline, one of which is a respiratory project and the other three are anti-infectives.

RRP is a rare and life threatening condition, that is characterised by the growth of warts within the respiratory tract of sufferers. This may cause blockage of the airway, which currently necessitates surgery, often required on numerous occasions in affected individuals. As announced on 25 November 2009 the Company submitted an orphan designation application to both the FDA and the EMEA, which if successful, will give the RRP application of ICVT, 'orphan status'. Orphan status allows certain regulatory and commercial advantages, such as market exclusivity, reduced application fees and availability of grants. Discussions to purchase the IPR regarding ICVT include, but are not limited to, the orphan indication.

Simultaneously, Henderson Morley continues to negotiate with other parties in respect of the sale of ICVT applications. This includes the specialist pharmaceutical company based outside the EU that sent Henderson Morley an LOI in October 2009 indicating its interest in the human applications of ICVT. Henderson Morley specifically excluded from these negotiations, RRP, ophthalmic, and veterinarian applications of ICVT. Commenting on this additional Letter of Intent, Executive Chairman Andrew Knight said: "We are delighted at the interest the sale of ICVT has generated and we are continuing negotiations with a number of parties and hope to conclude a deal as soon as possible. "The funds raised by the sale of ICVT will be used to bring the Company's stated strategy of becoming a 'Pure Play' vaccine Company to fruition"

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Enquires

HENDERSON MORLEY PLC 0121 442 4600

Andrew Knight, Chairman

BISHOPSGATECOMMUNICATIONS LTD 0207 562 3350

Maxine Barnes

Gemma O'Hara

BREWIN DOLPHIN INVESTMENT BANKING 0113 241 0126

Neil Baldwin

RIVINGTON STREET CORPORATE FINANCE 0207 562 3380

Dru Edmonstone

Further information on Henderson Morley plc can be accessed through the Company's website at www.henderson-morley.com