£2.05 million cash subscription by Arysta

24 May 2011

Plant Impact plc

("Plant Impact" or the "Company")

£2.05 million cash subscription by Arysta Lifescience and entry into commercial agreements

Plant Impact, the crop enhancement company, is pleased to announce that it has raised £2.05 million through the issue of 4,560,530 new ordinary 1p shares in the Company (the "Subscription Shares") at 45 pence per Subscription Share with Arysta Lifescience Corporation ("Arysta Lifescience") (the "Subscription"). Following completion of the Subscription, Arysta Lifescience will hold 9.08 per cent. of the Company's enlarged issued share capital.

The subscription price of 45 pence represents a 76.47 per cent. premium to the closing mid market price of 25.5 pence per ordinary share on 23 May 2011, that being the last practicable date prior to this announcement.

In addition Plant Impact has entered into two commercial agreements with Arysta Lifescience. The first agreement covers the commercial development of the Company's PiNT technology in the Turf and Ornamental Markets in the USA, including the large US professional golf market. The second agreement covers the commercial development of the Company's INCA & PiNT technologies for use in horticulture in Brazil. Horticulture is a key export market for Brazil. Arysta Lifescience and the Company will also continue to work together to evaluate a number of other emerging markets.

The existing evaluation agreement between Arysta and Plant Impact which originally expired in March 2011 has been extended until June 2012. In addition to the time extension, the agreement has been expanded to cover a portfolio of Plant Impact's products in addition to InCa and a further four territories have been added bringing the total to 28.

Headquartered in Tokyo, Japan, Arysta Lifescience is the world's largest privately held crop protection and life science company with 2010 revenues of JPY113 billion (US$1.3 billion). An entrepreneurial provider of crop protection and life science products in more than 125 countries worldwide, Arysta Lifescience specialises in marketing and distribution of respected crop protection brands and life science products in harmony with the needs of global partners. More information on Arysta Lifescience is available at: www.arystalifescience.com

The proceeds from the Subscription will not only strengthen the Company's balance sheet but, in accordance with the terms of the Subscription, half of the net proceeds of the Subscription (approximately £1.0m) will also be used by Plant Impact to work with Arysta Lifescience in the development of the Turf and Ornamental market in the US and the Horticultural market in Brazil. Arysta Lifescience is well positioned to develop the novel technology of INCA and to build on the excellent results from the US Department of Agriculture trials regarding PiNT work in the USA, focusing on the premium market of professional golf where the Company sees an unmet need for environmentally sound solutions.

The remainder of the Subscription sums will be used by Plant Impact for product development, recruitment of new sales and development staff and to enable the Company to carry out further product branding and marketing.

Peter Blezard, CEO of Plant Impact commented: "I am delighted that Arysta Lifescience has chosen to invest in Plant Impact so that we can implement this growth strategy together. We feel that this shows industry confidence after several years of successful trials. The proceeds from the subscription will give us the financial strength to continue the growth of other parts of our business."

Paula Pinto, Global Head of Marketing, Arysta Lifescience, said: "We are pleased to be investing in Plant Impact at this crucial stage in its development and see substantial growth opportunities ahead. We look forward to working with the Company on the evaluation and commercialisation of their products in the Turf and Ornamental markets in the US and the horticultural market in Brazil."

Application has been made for the Subscription Shares to be admitted to trading on AIM ("Admission") and it is expected that Admission will take place on or around 31 May 2011. Following Admission, the Subscription Shares will represent 9.08 per cent. of the enlarged share capital of the Company and Arysta Lifescience will have a total beneficial interest in 4,560,530 ordinary shares in Plant Impact, equivalent to 9.08 per cent. of the Company's enlarged share capital.

The total enlarged issued share capital of the Company following Admission will be 50,214,639 ordinary shares of 1 pence each in the Company. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure and Transparency Rules.

For further information, please contact: