5 December 2008. Ann Arbor, Michigan – NextGen Group plc (AIM: NGG, ‘the Group’, ‘NextGen’ ), the provider of biomarker testing services, has sold its non core ‘gene to protein’ automation and software business to a management led spin-out called eXeTek Ltd (‘eXeTek’).

The disposal involves an exclusive licence of the technology and an asset and liability transfer that enables NextGen to accept and recognise revenues from two existing customer orders. This will allow revenue recognition for the Group of £0.3m in 2008 with an ongoing project which is expected to recognise a further £0.9m in early 2009.

eXeTek will receive £0.2m in cash in the liability and asset transfer leaving the Group with a £0.6m net cash profit. As part of the deal NextGen will acquire a 24% stake in eXeTek and receive 5% royalty on sales for three years. The automation and software business unit in 2007 recognised a total of £424,000 with a gross margin of 49%.

eXeTek is led by two former NextGen employees, Stephen Woodall and Stuart Hill.

The disposal is in line with NextGen’s strategic plan, announced in April 2008, to divest or wind down its software and instrumentation UK-based businesses and to focus all resources including the profit realised from these transactions on growing the biomarker services business.