Early repayment of the CRC Finance facility

Skyepharma announces early repayment of the remainder of the CRC Finance facility

LONDON, ENGLAND, 13 February 2015 - Skyepharma PLC (LSE: SKP), the expert oral and inhalation drug development company, today announces that it has given notice to CRC European Loan Origination Platform Limited ("CRC") to repay the entire outstanding U.S. Dollar principal of the CRC Finance facility. This follows the early repayment of the outstanding Euro principal in October 2014 and will result in the facility being fully repaid and terminated.

The outstanding U.S. Dollar principal of $15.1 million (£9.9 million at current rates) will be repaid on 27 February 2015 at a cost of £10.5 million (at current rates) including accrued interest and a make-whole amount of 4.4 per cent. The early settlement of the remainder of the facility will result in a total saving for the Group of £0.9 million (net of the make-whole amount) compared with the amounts which would otherwise be payable based on current interest rates through to the normal maturity date of 31 December 2016.

The early repayment is being funded out of general cash resources. As previously announced, the Group ended the 2014 financial year with cash of c. £32.4 million and net cash (net of debt) of c. £15.1 million.

Andrew Derodra, Chief Financial Officer of Skyepharma, commented:

"We are pleased to announce the early repayment of the remainder of the CRC Finance facility, which has been possible due to the Group's strong cash generation over the last 12 months. The repayment of the U.S. Dollar CRC Finance facility, combined with the early repayment last year of the Euro CRC Finance facility, delivers £2.7 million in total cost savings and will remove the associated security obligations and restrictions. With the 2014 repayment of the bond debt and the Paul Capital Note, the repayment of the CRC Finance facility means that Skyepharma is no longer encumbered by expensive debt."

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About Skyepharma PLC

Skyepharma combines proven scientific expertise with validated proprietary technologies to develop innovative oral and inhalation pharmaceutical products. The Group's licenses cover 16 approved inhalation, oral, topical and injectable products, which generate milestones, recurring royalties, and in some cases, product supply revenues. The Group also earns milestones and contract development revenues from new product developments. Products developed by Skyepharma are marketed by some of the world's most respected pharmaceutical companies. For more information, visit www.skyepharma.com