AGM Statement

9 June 2016

Source BioScience plc

('Source BioScience', the 'Group')

ANNUAL GENERAL MEETING STATEMENT

Laurie Turnbull, Chairman of Source BioScience, will be making the following comments at the 2016 Annual General Meeting to be held today at 10.30am:

"Since our last Annual General Meeting, the Company has delivered another year of significant progress. Following the acquisitions made during 2015, we have instigated a number of important projects to continue to improve operational efficiencies and enhance capacity to meet demand for the Group's enhanced portfolio of Laboratory Services and Products.

From a financial perspective, 2015 was the tenth successive year of improvement and represented a record performance, demonstrated by the key financial indicators of operating profit and EBITDA. The momentum created during 2015 has continued into 2016 and the Group is trading ahead of last year.

The progress of the Company has also been recognised externally; the London Stock Exchange identified Source BioScience as one of the "1,000 Companies to Inspire Britain 2016". The report, focusing on innovative and dynamic small and medium-sized enterprises, highlighted the positive growth in revenue over the last four years in addition to the Company significantly outperforming its sector peers. This recognition is a testament to the hard work, dedication and ambition to build a successful and flourishing business by the entire team at Source BioScience.

Laboratory Services

Analytical and Regulated Services

Following the acquisition of Select Pharma in August 2015, the Company is progressing with the integration and new infrastructure projects to increase capacity, flexibility and breadth of the analytical chemistry and microbiology service offering.

As highlighted in the 2015 Annual Report, new analytical chemistry laboratories are being commissioned in Rochdale, initiating the roll-out programme for analytical testing across the Group's stability storage facilities.

In addition, a £1.2 million infrastructure investment project in Livingston, Scotland has now commenced to create a bespoke, cutting-edge 12,000ft2 analytical chemistry, microbiology and stability storage facility. Employees from the existing site in Stirling will transition across to the new facility during 2016 and the Company is looking to recruit an additional 20 laboratory technicians and laboratory scientists to join the current 50-strong team. This new facility will equip Source BioScience with leaner workflows and the capacity and technology to deliver an enhanced portfolio of services to new and existing customers.

Products

Clinical Products

As previously reported, the introduction of HPV testing into the NHS Cervical Screening Programme, and the influence this has on NHS Trusts' technology requirements, continues to negatively impact volumes and revenue in this part of the business. The demand seen to date during 2016 is less than 50% of the demand seen during the peak achieved in 2012, a compound annual rate of decline of approximately 15%, in line with expectations.

The recently commissioned, state of the art serology manufacturing facility is now fully on stream and the increased flexibility, productivity and gross margin of the serology product portfolio represents an increasingly significant component of the Clinical Products business.

Controlled Environment

The design and manufacture of stability storage and controlled environment chambers is highly complementary with the Analytical and Regulated Services activities. In February 2016 the Group launched the new Polar Series of products, representing the world's first environmentally controlled -70oC walk-in chamber, with applications in research and drug manufacturing. The first Polar50™ chamber, providing 50m3 of capacity, has been installed in the Rochdale facility and has been fully validated to meet strict MHRA and FDA requirements.

Possible Offer for Source BioScience

Shareholders' attention is drawn to the announcement released on 3 June 2016 by Continental Investment Partners ("Continental") and Harwood Capital LLP ("Harwood Capital") and the Company's response to that announcement made on the same date.

The Board confirms that it has received an approach from Continental and Harwood Capital (together the "Joint Offerors") which may or may not lead to an offer being made to acquire the entire issued and to be issued ordinary share capital of Source BioScience at 18 pence (and no more than 18 pence) per ordinary share of 2 pence each in the share capital of Source BioScience.

At this stage there can be no certainty that an offer will be made for the Company by the Joint Offerors, nor as to the terms on which any such offer may be made. If and when any such offer under Rule 2.7 of the Takeover Code is made by or on behalf of the Joint Offerors, the Board of Source BioScience will set out its opinion on the terms proposed. Further announcements will be made in due course.

Outlook

Results for the year ended 31 December 2015 demonstrated another year of strong growth and progression for the business. Trading for the early part of 2016 continues to build on the robust operational performance of the Group.

We look forward to updating shareholders further following the publication of our Half Year Report for the six months ending 30 June 2016, which we expect to release in August 2016."

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For further information, please contact:

Source BioScience plc

Dr Nick Ash, CEO

Tel: +44 (0) 115 973 9010

www.sourcebioscience.com

For investor enquiries:

N+1 Singer (Financial Advisor, Sponsor and Broker)

Nic Hellyer/James White

Tel: +44 (0)203 496 3000

www.nplus1singer.com

About Source BioScience

Source BioScience plc (LSE: SBS) is a trusted provider of state of the art Laboratory Services and Products to the healthcare and clinical, life and applied sciences and biopharma industries. It is an international business operating ten state of the art facilities in five countries and with customers in over 90 countries worldwide. The Group offers a complementary portfolio of Laboratory Services and Products that share common technologies, laboratory processes, infrastructure and expertise. These include Diagnostics, DNA Sequencing and Genomics, Analytical and Regulated Services, Clinical Products, Life Science Research Reagents and Controlled Environment Storage for a diverse range of markets. These Laboratory Services and Products are provided to a large and diverse customer base including the top 50 pharmaceutical companies, leading universities and research institutes worldwide, the UK NHS and other healthcare providers. The Group is listed on the Premium Main Market of the London Stock Exchange.