Contacts:
Lorraine Jones BTG +44 (0) 20 7575 1622 lorraine.jones@ btgplc.com	David Leeney Taylor Rafferty +1 212 889 4350 david.leeney@ taylor-rafferty.com	Julie Saunders, Collegium Pharmaceutical +1-401-762-2000 jsaunders@ collegiumpharma.com

West Conshohocken, PA - September 28, 2004 - BTG (LSE: BGC), the intellectual property and technology commercialization company, announced today that it has entered into a Collaboration Agreement with Collegium Pharmaceutical, Inc. to develop novel formulations of its combination drug therapy currently being developed for the treatment of sleep apnea. Collegium will employ its expertise in product development, including its suite of proprietary formulation technologies with the goal of establishing a broadly patented single product with optimal properties for the treatment of this sleep related breathing disorder. The Collaboration Agreement provides for a development program that will be funded by BTG, as well as revenue sharing arrangement between the parties. The intent of this Collaboration Agreement is for the sleep apnea project to be the first of additional co-development programs between the companies.

Sleep apnea is a serious respiratory disorder that involves cessation of breathing for prolonged intervals during sleep. It is estimated that 15-20 million people in the United States suffer from apnea, which has been linked to increased risk for hypertension, heart failure, depression and diabetes. Sleep apnea is thought to be as common a disease as adult diabetes. Currently, there are no approved pharmacological therapies to treat sleep apnea. The novel therapy being developed by BTG and Collegium is comprised of a combination of two drugs that are currently approved and in use to treat indications that are unrelated to sleep apnea. The basis for this therapeutic approach is work from noted sleep researchers Drs. David Carley and Miodrag Radulovacki at the University of Illinois at Chicago who have demonstrated that modulation of specific neurotransmitters significantly reduces sleep apnea in both preclinical and clinical studies.

"BTG is extremely pleased to be working with Collegium on the sleep apnea therapeutic project. They bring tremendous value and expertise to the program and based on their exceptional track record of success we believe that we will be able to accelerate the development of this very promising therapeutic approach to treat this serious disorder", said Thomas Logan, Ph.D. Vice President of BTG's BioPharmaceuticals Business Unit. "BTG is building a portfolio of development programs that involve new uses for existing drugs and drug combinations. We believe that BTG's intellectual property expertise coupled with Collegium's product development expertise represents an ideal partnership".

"Sleep apnea is a largely unrecognized and untreated illness with many adverse health consequences. We are excited about the possibilities of this therapy that we are developing with BTG. They have an excellent track record of identifying, developing and licensing technologies with high commercial potential and we believe that the combination of both companies provides for tremendous synergy on this project", said Michael Heffernan RPh, President of Collegium.

About BTG
BTG creates value by investing in intellectual property and technology development, and in early stage ventures. We realize value through technology licensing, patent assertion and sale of equity investments. Through a multidisciplinary approach, we apply intellectual property and commercial expertise, together with specialist skills in science and technology, to create major product opportunities in the health and high tech sectors. BTG has commercialized important innovations, including Magnetic Resonance Imaging, Multilevel Cell Memory, Campath® (alemtuzumab) the first monoclonal antibody treatment for chronic lymphocytic leukemia, and recombinant Factor IX blood clotting protein. BTG operates through wholly owned subsidiaries BTG International Ltd and BTG International Inc in the UK and USA, respectively. Further information about BTG can be found at www.btgplc.com

About Collegium Pharmaceutical, Inc.
Collegium Pharmaceutical, Inc., is a privately held pharmaceutical company focused on the development of proprietary, late stage pharmaceutical products. These products target market opportunities through product enhancements and line extension strategies protected by intellectual property (IP). Collegium applies customized pharmaceutical formulations and IP strategies to drugs that are safe and effective, creating a portfolio of improved pharmaceutical products with potentially less development risk and shorter times to market. Collegium uses its broad expertise in IP development, drug formulation, manufacturing, basic science (chemistry, biology, bioengineering), marketing and clinical trials management to identify and execute product opportunities for itself and its partners. For more information, visit the Company's website at www.collegiumpharma.com.