AGI Therapeutics plc announces Research Update

       AGI announces first patient dosed in Phase II trial of AGI-004
                        in chemotherapy-induced diarrhoea


Dublin, Ireland, February 5th 2008 - AGI Therapeutics plc ("AGI" or the
"Company") (AIM, IEX: AGI), a speciality pharmaceutical company focused on
gastrointestinal drug products, today announces that the first patient has been
dosed in its Phase II study of AGI-004 in the treatment of chemotherapy-induced
diarrhoea (CID).

The current standard of care for CID patients usually involves multiple oral
daily doses of an opioid agent such as loperamide.  However, many patients who
receive loperamide continue to experience significant and debilitating diarrhoea
which may require reduction, delay or even withdrawal of chemotherapy.  AGI-004
is a controlled release transdermal patch containing the nicotinic antagonist
mecamylamine.  The patch involves a new anti-diarrhoeal mechanism via selective
blockade of enteric nicotinic acetylcholine receptors (nAChR) and offers a
significant advantage to current CID therapy via its convenient, once-daily
transdermal form.

AGI previously reported data demonstrating a statistically significant
improvement in stool consistency in patients with functional diarrhoea.  The
Phase II study is a randomised, double-blind, placebo-controlled evaluation of
AGI-004 in cancer patients experiencing National Cancer Institute (NCI) grade 1
or 2 CID.

Dr. John Devane, CEO of AGI, commented; "We believe AGI-004 has the potential to
address a significant need for a more effective anti-diarrhoeal therapy for
patients undergoing chemotherapy and are very encouraged by the initiation of
dosing in this study population.  We are pleased to see continued progress of
our product pipeline and, in addition to the pivotal Phase III programme for
RezularTM in IBS-D, we look forward to further developments in our Phase II
programmes during the course of 2008."


Contact Information:

AGI Therapeutics plc.                          Tel: +353 1 449 3254
David Kelly, Chief Financial Officer

Financial Dynamics - UK                        Tel: +44 (0) 20 7269 7182
Deborah Scott/Lara Mott

Financial Dynamics - Ireland                   Tel: +353 1 663 3607
Aisling Garvey

Piper Jaffray Limited                          Tel: +44 (0) 20 3142 8700
Neil Mackison
Will Carnwath

Davy                                           Tel: +353 (1) 614 8761
John Frain





Notes to Editors:

About AGI-004 and chemotherapy-induced diarrheoa (CID)

AGI-004 is a controlled release transdermal patch containing mecamylamine
designed for once-daily administration. AGI-004 is the subject of a number of
pending patent applications, the first of which was recently granted in the
European patent office (EP 1603544).

Previously, AGI reported the results of a Phase II clinical study in patients
with functional diarrhoea.  This study was designed to investigate the
anti-diarrhoeal profile of AGI-004 and identify clinical signals which would
inform further clinical development.  Data from this pilot study demonstrated
that AGI-004 has a beneficial effect on certain diarrhoea-related symptoms,
particularly stool consistency. Based on these clinical data, the mechanism of
action of AGI-004 and the pathophysiology of certain non-functional diarrhoea
conditions, the Company determined that AGI-004 may be effective in treating
diarrhoea-related symptoms in conditions such as chemotherapy-induced diarrhoea
(CID).

CID is a prevalent and severe toxicity associated with cancer chemotherapy
treatment and occurs in up to 50% of patients receiving chemotherapy and can
affect up to 80% of patients receiving certain chemotherapy regimens.  CID may
range from troublesome (grade 1) to life-threatening (grade 4).  CID can
negatively impact a patient's health to the point that they are unable to
tolerate their prescribed chemotherapy, commonly leading to delay or reduction
in treatment which may diminish the effect of treatment.  Loperamide is the
current drug of choice for the management of mild to moderate CID, but is
limited in terms of its effectiveness and dosing flexibility, and there are
currently few effective alternative therapies available.

AGI-004, a low-dose controlled release form of mecamylamine, is a potent,
non-competitive specific antagonist at nicotinic Acetylcholine receptors
(nAChR). More specifically, AGI-004 has been shown to be selectively active on
certain nAChR sub-types which are the predominant form found on enteric neurons,
where nAChR is known to regulate a range of gut functions, including modulation
of secretory and motility effects.  AGI-004 is formulated in a proprietary
controlled release transdermal patch which can be administered one-daily.

The current Phase II study is a randomised, prospective, multi-centre,
double-blind, placebo-controlled, balanced, parallel-group trial in cancer
patients who are experiencing grade 1 or 2 CID.  Patients will be randomly
allocated to active treatment or placebo. Treatment will be initiated 24 hours
prior to chemotherapy. Patients will continue to self-administer AGI-004 or
placebo patches once daily during and after chemotherapy for the duration of the
cycle. Patients will be allowed free access to loperamide or other appropriate
medications on a rescue basis for the duration of any active episodes of
diarrhoea. Treatment with AGI-004 or placebo will be for two consecutive cycles
of chemotherapy. The dose of mecamylamine will be escalated over the two cycles.

About AGI Therapeutics plc

AGI is a speciality pharmaceutical company which is focused on the development
and commercialisation of differentiated drug products for gastrointestinal (GI)
diseases and disorders. AGI's common shares are listed on the Alternative
Investment Market of the London Stock Exchange (AIM) and on the Irish Enterprise
Exchange of the Irish Stock Market (IEX) as AGI.

The Company has a portfolio of product candidates derived from its Known
Molecular Entity (KME) approach to drug re-profiling and development. KME is a
re-profiling methodology used by the Company to identify existing therapeutic
drugs which typically have been marketed for a number of years, have established
safety profiles and can be developed for new clinical indications or with
improved profiles in their existing clinical indications. In this way, the
Company seeks to reduce the risk, time and cost of new product development as
compared to the development of new chemical entities.

AGI is developing a range of product candidates to treat a variety of prevalent
GI diseases and disorders, including irritable bowel syndrome (IBS), dyspepsia,
gastroparesis, ulcerative colitis, gastro-esophageal reflux disease (GERD) and
diarrhoea-related conditions such as chemotherapy-induced diarrhoea (CID). The
Company is targeting areas of the GI therapeutic drug products market for its
product candidates where there are currently unmet medical needs or where the
effectiveness of existing drug therapies can be further improved.

The Company has five active clinical stage product candidates which are either
isomers or new drug delivery formulations of existing approved drugs, and which
have established safety and tolerability profiles in their currently approved
clinical indications.


For further information please see www.agitherapeutics.com


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forward-looking references in this press release are subject to the satisfactory
progress of research which is, by nature, unpredictable. Forward projections
reflect management's best estimates based on information available at the time
of issue.


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