Update

5 August 2010

HENDERSON MORLEY PLC

("Henderson Morley" or the "Company")

(AIM: HML)

KMS THERAPEUTICS ("KMS") - UPDATE

As indicated in the RNS announcement of 3 August 2010, the Board reports on the status of negotiations with KMS for the disposal of the intellectual property relating to the Company's ICVT human portfolio.

As shareholders will be aware, the Company entered into a Letter of Intent with KMS in February 2010. The Company continues to work with KMS to complete the transaction, on terms acceptable to the Company, however until KMS advise that they are in a position to complete the transaction we are not able to finalise an agreement. The Company is not able to provide any guidance on the timescale that this process could involve.

The Board of the Company remains in the process of seeking to raise funds required to meet its ongoing operational expenses.

A further update will be made, as and when appropriate.

-END-

 Enquires:

HENDERSON MORLEY PLC Andrew Knight, Chairman 0121 442 4600

BREWIN DOLPHIN CORPORATE ADVISORY & BROKING Neil Baldwin 0845 213 4726

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