Commencement of Distribution Agreement

Oxford Pharmascience Group plc

("Oxford Pharmascience" or "the Company")

Commencement of Distribution Agreement

Oxford Pharmascience, the specialty pharmaceutical company that uses advanced pharmaceutic technologies to reposition medicines, is pleased to announce the commencement of a distribution agreement with Mega Lifesciences Ltd. ("Mega"); a lifesciences focused manufacturer and distributor supplying products to countries across the Far East.

Under the terms of the agreement, Mega will launch and distribute the Company's calcium chew across certain Far East and African markets. The Company started working with Mega in December 2010 under an agreement and is now in a position to begin registration in a number of countries; namely Indonesia, Malaysia, Philippines, Vietnam, Cambodia and Myanmar. Registration is likely in Q3/Q4 2012 with sales expected to commence in early 2013. The Company anticipates that sales will grow to £250,000 per annum by the third year after launch.

Mega operates in 23 countries, with a product portfolio covering segments such as Bone and Joint Health, Cardiology, Diabetes, Gastroenterology, Women's and Men's health, and Sports Nutrition amongst others. Using its extensive sales network and expertise, Mega will distribute the product alongside existing product sales to the specifically identified countries.

Nigel Theobald, Chief Executive, Oxford Pharmascience, commented: "We continue to look for opportunities to expand our existing chew business and the agreement with Mega will help us target sales across a number of smaller territories. Mega has a distribution infrastructure network which is ideal for our calcium chew product."

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About Oxford Pharmascience Group Plc

Oxford Pharmascience Group Plc develops advanced yet practical pharmaceutical technologies to enable reformulation that adds value to off patent and soon to be off patent drugs. The company does not manufacture or sell its own pharmaceutical products but instead seeks to license its technologies to a network of partners, mainly leading pharmaceutical companies with Rx (prescription) and OTC (Over the Counter) branded portfolios. These partners use our technologies to reposition their products helping them sustain market share and profitability by delivering improved health outcomes and/or clinical profiles via reformulated versions of the same API (active pharmaceutical ingredient).

Oxford Pharmascience Group Plc develops platform technologies that have application across multiple drug categories and can be leveraged across a broad range of reformulation problems. This business model allows us to provide solutions across the industry and fund the ongoing development of cutting edge technologies to better serve the needs of our partners. The partner companies who adopt our technology pay an up-front license fee followed by development milestone payments and then royalties on finished products sold using the technology. Oxford Pharmascience Group Plc invests the upfront licence fee to optimise product development and to ensure seamless technology transfer to the pharmaceutical partner.

About Mega Lifesciences Ltd.

-- Established 25 years ago, Mega Lifesciences is a pharmaceuticals company which operates in 23 countries.

-- The Company has grown to offer products in the areas of complementary medicine, herbal, pharma and OTC across segments such as such as Bone and Joint Health, Cardiology, Diabetes, Gastroenterology, Women's and Men's health, and Sports Nutrition, amongst others.