Directors' Shareholdings and Report and Accounts

Epistem Holdings Plc ("Epistem" or the "Company")

Directors' Shareholdings and Report and Accounts

Epistem today provides an update regarding the Company's share investment plan, details of which were announced on 13 July 2009.

As a result of the subscription for Partnership Shares and the award of Matching Shares, the executive Directors have each increased their beneficial interest in the Company by 459 ordinary shares of 1.5p each. These shares were acquired in two tranches on 5 October 2010, and single tranches on each of 9 November 2010, 30 November 2010 and 23 December 2010 at prices of 350p, 355p, 398p, 405p and 394p respectively.

The current beneficial interests of the executive Directors are set out below:

Matthew Walls 7,786 (0.10%)

Dr Catherine Booth 982,141 (12.38%)

Dr Ged Brady 2,141 (0.03%)

Dr Jeffrey Moore 16,641 (0.21%)

John Rylands 192,039 (2.42%)

Epistem confirms that it has published its Annual Report and Accounts for the year ended 30 June 2010 and has distributed them to shareholders. The document is available from the Company's website, www.epistem.co.uk.

For further details please contact:

Epistem Plc

Matthew Walls, CEO +44 161 606 7258

John Rylands, Finance Director +44 161 606 7244

Peel Hunt LLP

James Steel / Vijay Barathan +44 20 7418 8900