Wellcome Trust Announces Aaa/AAA Credit Rating and Proposed Bond Issue

3 July 2006

LONDON – The Wellcome Trust ('the Trust'), the UK's largest and the world's second largest charitable foundation funding biomedical research, announced today that it has received an Aaa/AAA bond credit rating from Moody's and Standard & Poor's respectively, representing the highest credit rating available. The Trust is the first UK charity to have been awarded the Aaa/AAA rating. The Trust has mandated Barclays, JPMorgan Cazenove and Morgan Stanley as joint bookrunners for a debut issuance of Sterling-denominated Bonds (the 'Bonds') subject to market conditions and following investor presentations, which are expected to begin later this week.

The proceeds of the issue will be used for investments that, over the long term, will enable the Trust to fund a wide range of scientific and medical research with the ultimate aim of improving human health worldwide. The Wellcome Trust funds a diverse range of high-profile research that will lead to better understanding of major diseases and the development of better treatments for future generations. For example, the Trust funded the sequencing of one-third of the human genome; it is involved in the development of new treatments for malaria; it is funding pioneering cognitive behavioural therapies to address psychological disorders; and it is sponsoring the National Science Learning Centre, which delivers professional development and training for primary and secondary science teachers. The Trust funds 3000 principal investigators and their research teams in around 50 countries worldwide.

Dr Mark Walport, Director of the Wellcome Trust, said:

"We are very pleased to be the first UK charity to have received this top credit rating. The Trust holds over £12 billion of investment assets, and spends over £450 million per year on research and other activities. The Aaa/AAA rating will give us the financial flexibility to access additional long-term funding for the Trust. It will help us to continue to increase the amount of money we spend each year in support of the very best scientists whose discoveries will increase our knowledge about health and disease." *

The issuing entity of the Bonds will be Wellcome Trust Finance plc, which is a special purpose vehicle incorporated in England and Wales, and the Bonds will be unconditionally and irrevocably guaranteed by Wellcome Trust. The Bonds will be offered to investors outside the United States in accordance with Regulation S under the US Securities Act of 1933, as amended.

* This relates to figures published as at 30 September 2005.

Wellcome Trust(+44 (0)207 611 8540/8866)

Dr Mark Walport, Director
Susannah Randall, Head of Communications
Katrina Nevin-Ridley, Head of Media

Brunswick Group LLP (+44 (0)207 404 5959)

Louise Charlton
Justine McIlroy
Sarah Lindgreen

Notes to editors

About the Wellcome Trust
The Wellcome Trust is an independent registered charitable trust, established under the will of Sir Henry Wellcome in 1936. The Trust is the second largest biomedical research funding foundation in the world with a mission to "foster and promote research with the aim of improving human and animal health". It is the largest charitable trust in the UK, managing a highly diversified investment portfolio (£12.3bn as at 30 September 2005). In 2004/05, the Trust's charitable expenditure was £483m, including grant funding of £344m to support and facilitate innovative science and medicine on a global scale. The Wellcome Trust funds a diverse range of high-profile research that will lead to better understanding of major diseases and the development of better treatments for future generations including:

• Sequencing of the human genome – Wellcome Trust-funded researchers sequenced one-third of the human genome, one of the most important scientific breakthroughs in recent times. Scientists are currently using this data to identify the genes that increase the chances of developing major diseases such as cancer, diabetes and heart disease.
• The development of a new treatment for malaria – a Wellcome Trust study by Professor Nick White showed that artesunate drugs, derived from a Chinese herb, are more effective than quinine in the treatment of malaria, prompting the World Health Organization to change its recommendations for the treatment of malaria.
• Pioneering cognitive behavioural therapies – Wellcome Trust-funded researchers have developed therapies addressing a wide range of psychological disorders from bulimia to post traumatic stress disorder.
• Establishing the UK Biobank – the Wellcome Trust is helping to fund UK Biobank, a project of unprecedented size. By collating lifestyle and medical information from 500 000 volunteers, researchers hope to identify environmental and genetic factors that cause common conditions such as cancer and heart disease.
• Launch of the National Science Learning Centre - a centre that delivers professional development and training for primary and secondary science teachers enabling them to improve the quality of science education in UK classrooms.

Stabilisation: FSA/ICMA
In connection with this issue of the Bonds, Barclays Bank PLC (the "Stabilising Manager") or any person acting on its behalf may over allot Bonds (provided that the aggregate principal amount of the Bonds allotted does not exceed 105 per cent of the aggregate principal amount of the Bonds) or effect transactions with a view to supporting the market price of the Bonds at a level higher than that which might otherwise prevail. However, there is no assurance that the Stabilising Manager (or any person acting on its behalf) will undertake stabilisation action. Any stabilisation action may begin on or after the date on which adequate public disclosure of the terms of the offer of the Bonds is made and, if begun, may be ended at any time, but it must end no later than the earlier of 30 days after the issue of the Bonds and 60 days after the date of the allotment of the Bonds. Such stabilisation shall be in accordance with all applicable laws, regulations and rules.

These materials do not constitute an offer of any securities for sale in the United States, nor may the securities be offered or sold in the United States absent registration or an exemption from registration as provided in the US Securities Act of 1933, as amended, and the rules and regulations thereunder. No securities are being registered for offer or sale in the United States and no public offering of the securities in the United States will be made.

In the United Kingdom, this announcement is exempt from the general restriction (in section 21 of the Financial Services and Markets Act 2000) on the communication of invitations or inducements to engage in investment activity and is only directed at the following persons: (1) persons outside the United Kingdom in accordance with Article 12 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the 'FPO'); (2) persons falling within Article 19(5) ('Investment professionals') of the FPO; and (3) persons falling within Article 49(2)(a)-(d) ('High net worth companies, unincorporated associations etc') of the FPO (all such persons referred to as 'Relevant Persons'). Persons who are not Relevant Persons must not rely on this communication.Any investments or investment services referred to in this announcement will only be made available to Relevant Persons.

This press release is an advertisement and is not a prospectus for the purposes of EU Directive 2003/71/EC (the 'Prospectus Directive') and/or Part VI of the Financial Services and Markets Act 2000. A final form prospectus will be prepared and made available in accordance with the Prospectus Directive. Investors should not subscribe for the Bonds referred to in this press release other than on the basis of information contained in the final form prospectus. The final form prospectus, when published, will be available on the website of the London Stock Exchange.