Final Results

Plant Impact plc

("Plant Impact", the "Group" or the "Company")

Preliminary results for the year ended 31 March 2010

Plant Impact plc (AIM:PIM), which develops and markets ecologically friendly crop nutrition and protection products, today announces its preliminary results for the year ended 31 March 2010.

Corporate Highlights

ü License agreement for BugOil® with Arysta LifeScience

ü First BugOil® regulatory milestone

ü Arysta LifeScience crop nutrients agreement

ü Placings generating a combined £3.59m gross proceeds

ü Finalist at the Grower of the Year Awards

Research & Development Highlights

ü BugOil® data dossier submitted to the EPA, in the USA

ü Patent approval on going

ü USDA agreement

ü Cemas/Tecsolve collaboration

ü Membership of the Parliamentary Scientific Committee

ü Scientific Advisory Board inaugural meeting

ü Nematicide grant €300k

Financial Highlights

ü Increase in turnover to £1,411k (2009: £830k)

ü Improved Crop Nutrient gross profit margins 63.0% (2009: 47.6%)

ü Research and development and distribution spend of £1,954k (2009: £2,029k)

ü Loss before tax of £1,685k (2009: £2,475k)

ü Cash at 31 March 2010 of £2,895k (31 March 2009: £756k)

 Post year end

Martin Robinson, Chairman of Plant Impact plc, commented: "Our work with growers in recent years has generated increased sales. We continue to work with government agencies and food producers around the world to seek the breakthroughs we need to take the business to another level. This is a long process, in an industry which is slow to change, but we remain confident that we have a range of products which can change the face of agriculture and make a significant contribution to food security and sustainability."

Enquiries:

For further information, please contact:

Chairman's Statement

I am pleased to present Plant Impact's results for the year ended 31 March 2010. The Group has made excellent progress over the year. During the twelve months under review, the Group has entered into its first license agreement for BugOil®, has expanded territories and crops for its nutrient products and has increased revenues and margins.

Financial review

Turnover for the year was £1,410,711, compared to £829,616 for the year ended 31 March 2009. The increase in turnover has come from license agreement milestone payments and direct sales to growers, particularly in the UK and Eastern Europe, and sales via the Group's distributor in the USA. Gross profit margins for the Group's nutrient products have improved, as a result of increased sales of InCa, our highest margin product, from 47.6% for the year ended 31 March 2009 to 63% for the current year.

The operating loss for the year reduced to £1,662,844, compared to £2,546,326 for the year ended 31 March 2009, reflecting income from the initial milestone payments for BugOil® and improved volumes and margins from the nutrient products. Interest and research and development tax credit receivable reduced the loss for the year attributable to equity shareholders to £1,417,075, compared with £2,255,075 for the year ended 31 March 2009. The loss for the year has been arrived at after £185,036 of development costs relating to BugOil® were expensed. As we are now commercialising BugOil®, future development costs will be capitalised in accordance with accounting standards. Cash balances at 31 March 2010 amounted to £2,895,025, compared with £756,012 for the year ended 31 March 2009.

Corporate developments

In May 2009 Plant Impact and Arysta LifeScience signed a license agreement which grants Arysta LifeScience worldwide exclusivity in all fields, except for the home and garden and animal health markets, for BugOil®. This is the first license agreement for the Company's products and demonstrates the commercial possibilities for Plant Impact via this route to market.

Building on its relationship with Arysta LifeScience, in February 2010 Plant Impact and Arysta LifeScience entered into an exclusive evaluation, development and distribution agreement covering the Company's InCa, Balance and Cocoa Stress Tolerance nutrient products.

Revenues in the USA, UK, Eastern Europe and Africa are very encouraging, with repeat orders, expansion in field trial development and crop coverage. InCa is now the Group's biggest selling product, representing 77% of sales by value, compared with 45% in 2009, largely as a result of an increase in sales in the USA through our distributor, Miller Chemical, and with increased sales in the UK and Eastern Europe.

Fund raising

During the year, Plant Impact raised £3.59m gross (£3.32m net) in two placings, in July 2009 and March 2010. The net proceeds are being invested in appointing new sales and marketing personnel to drive sales in the Company's current markets and accelerate the roll out of the Company's existing products into new markets.

Further details of each of these developments and other achievements during the year are set out in the Chief Executive's Review.

 Board change

After some five years of association with Plant Impact and being instrumental in developing the Plant Impact pipeline of technologies, Bill Thompson resigned as a director of Plant Impact in January 2010, to pursue other interests. He remains as a consultant to the Company during his six months notice period. I would like to thank Bill for all his excellent work in the past few years at Plant Impact as both a non-executive director and, latterly, as an executive director.

Dividends

The Directors currently intend to devote the Group's cash resources to its operations and therefore do not anticipate paying dividends in the near future. They will reconsider the Company's dividend policy as and when the Company is in a position to pay dividends. The declaration and payment by the Company of any dividends will depend on the results of the Company's operations, its financial condition, cash requirements, future prospects, profits available for distribution and other factors deemed to be relevant at the time.

Outlook

The Directors are very pleased with the progress made during the year. With the growth in sales of our nutrient products, the first income from the license for BugOil® and the potential for further license and distribution agreements, the Group has demonstrated that it is able to commercialise its technologies. The funds raised during the year give the Group the resources to continue to grow the business and to achieve positive cash flows.

Since its formation, the Group has followed a two-pronged strategy for marketing our products: promotion to growers, either direct or via distributors, and promotion to legislators and opinion formers. The former has been to gain sales and practical results, to demonstrate the commercial benefits of our products, and the latter to gain recognition of environmental and food quality benefits of our products. We have now seen the results of our work with growers turn into increased sales and continue to work with government agencies and food producers around the world to seek the breakthroughs we need to take the business to another level. This is a long process, in an industry which is slow to change, but we remain confident that we have a range of products which can change the face of agriculture and make a significant contribution to food security and sustainability.

My thanks go to all of our Directors and employees who work tirelessly to achieve these goals.

Martin Robinson

Chairman

14 June 2010

Chief Executive's Review

Overview

Plant Impact's commercial development has seen significant progress this year and has built on the revenue stream from the previous financial year. The Company has entered into its first license agreement, has entered into an evaluation, development and distribution agreement, has expanded territories and crops covered and has increased revenues for the second year running.

All this was achieved during difficult financial and trading conditions where, as explained in the September 2009 interim results, sales were impacted by reduced credit facilities available to growers and distributors, crop pricing fell significantly, reduced inventories and a very late spring. This was especially evident in Southern Europe and the Mediterranean countries.

The underlying macro economic conditions continue to prevail in the agricultural industry. Food security issues still exist with pressure to increase agricultural production, decreasing natural resource and a demand that this is achieved in an environmentally friendly manner. Plant Impact's technologies and products will play an increasing role in helping resolve food scarcity and environmental impact.

Commercial Development

BugOil® License Agreement with Arysta LifeScience

In May 2009 Plant Impact and Arysta LifeScience signed a license agreement which grants Arysta LifeScience worldwide exclusivity in all fields, except for the home and garden and animal health markets, for BugOil®. This is the first license agreement for the Company's products and demonstrates the commercial capability within Plant Impact.

This license agreement has the following terms:

·; 20 year term;

·; an upfront non refundable payment, which was received in June 2009;

·; four regulatory milestones;

o on submission of the EPA dossier, this milestone was received in September 2009;

o on UK regulatory approval;

o on US regulatory approval; and

o on EU regulatory approval.

·; sales target milestones; and

·; royalty on sales of BugOil®.

Under the Licence Agreement Arysta LifeScience is also granted certain rights in relation to any further development of BugOil® by Plant Impact. Plant Impact reserves the right to engage in further research and development regarding BugOil®. Plant Impact remains responsible for costs in relation to the maintenance of the BugOil® patents and obtaining the necessary regulatory approvals to sell BugOil® in the United Kingdom, the European Union and the United States. It is the responsibility of Arysta LifeScience to register the product at state level in the United States and country level in the rest of the world.

The relationship between Plant Impact and Arysta LifeScience is strong and there is a joint task force to ensure all regulatory, development and commercial objectives are achieved. Plant Impact has a dedicated member of staff who liaises with the Arysta LifeScience regulatory and field trial development teams. There has been significant progress in BugOil® field trial development in a number of countries, and the regulatory approval process has been targeting countries with short approval timelines.

Plant Impact is currently in an evaluation period with two well known companies that are trialing BugOil® in the home and garden market. The key target countries are USA, UK and France.

Crop Nutrients agreement with Arysta LifeScience

In February 2010 Plant Impact and Arysta LifeScience entered into an exclusive evaluation, development and distribution agreement covering the Company's InCa, Balance and Cocoa Stress Tolerance products. In May 2010 this agreement was extended to include another Plant Impact product, Saxon.

This is a significant milestone for Plant Impact as the agreement will:

·; extend territorial coverage of the Crop Nutrient products from 24 countries to 52 countries.

·; increase field trial development of the Crop Nutrient products. Arysta LifeScience is planning approximately 350 field trials over the next 12 to 18 months which means that, including the Company's currently planned field trial programme, this will result in more than 500 field trials being conducted; and

·; increase the commercial potential of the Crop Nutrient products.

Countries included in the agreement are North America (excluding InCa), Central and Latin America, Europe, Africa and the Far East. Initial crop targets are in high value horticulture with potential extension into some arable crops.

Arysta LifeScience will have exclusivity to evaluate the Crop Nutrient products until 31 March 2011. This product evaluation represents the field trial development stage referred to above and will be carried out to research standard. Once this is complete Arysta LifeScience will ensure products are registered locally, and will market and distribute these products on an exclusive basis. Detailed development and distribution agreements are being signed country by country as they come on stream.

The first distribution agreement was signed in May 2010 with Arysta LifeScience Mexico for the exclusive distribution of InCa in Central America following a series of field trials conducted in Mexico and Guatemala using InCa. Other Plant Impact products are in an evaluation stage in Mexico.

The first crop nutrient product sales to an Arysta LifeScience subsidiary occurred in May 2010 when Arysta LifeScience Czech Republic took delivery of an order for InCa.

Both companies are coordinating field trial activities and the initial trial programme, which has already started, is concentrating on the USA, Mexico, Brazil, Chile, Ivory Coast, South Africa, North Africa, Indonesia, Thailand, France, Poland, Romania and Czech Republic.

Increases in revenue and margins

Revenue for the year at £1,410,711 is an increase of £581,095 on 2009. The improved revenue is a result of the BugOil® license agreement with Arysta LifeSciences milestone payments and an increase in crop nutrient sales.

Revenues in the USA, UK, Eastern Europe and Africa are very encouraging, with repeat orders, expansion in field trial development and crop coverage. Miller Chemical in the USA have nearly doubled the sales of InCa and have shown progressive field trial development. The UK is also showing promising results with distributors such as Agrovista fully supporting InCa and are now looking at other Plant Impact products. Eastern Europe has increased the volume of InCa sold, with more countries coming on stream during 2010 such as the Czeck Republic, Romania and Hungary. Africa has developed sales this year in Kenya using InCa, PiNT Ca and PiNT K and in Nigeria using CST (Cocoa Stress Tolerance). We are currently in distribution agreement discussions in Kenya with Lachlan.

In Northern Europe we have seen a decrease in revenues due to poor performance by the Company's current distributors in France. Plant Impact is taking action during 2010 to remedy this situation. In Holland we have seen our distributors excel. Our main distributor in Holland, Cebeco, has significantly increased the number of field trials, both research and demonstration, and improved volumes of InCa sold. They are also trialing other Plant Impact products and have a strong marketing campaign underway.

Revenues from Southern Europe and the Middle East have been below expectations. The lack of credit to growers and distributors, the low crop prices, reduced inventories and the late spring have contributed to a decrease in year on year revenue.

For the third year in succession crop nutrient margins have improved. During the year, product margins have averaged at 63% (2009: 47.6%). InCa is the product which is the most advanced commercially and represents 77% of total sales and 87% of total margin.

Membership of the Parliamentary Scientific Committee

During the year, Plant Impact's application to join the UK Parliamentary and Scientific Committee as an industrial member was successful.

The Parliamentary and Scientific Committee is Westminster's oldest all party associate committee. The 360 strong membership comprises 153 peers, MPs and MEPs together with 207 non Parliamentary bodies. Industry members on the committee include Pfizer, Monsanto, Merck Sharp and Dome, AstraZeneca, BASF and the Crop Protection Association. Plant Impact is the sole small and medium enterprise on the committee which is technology focused on crop production in the agricultural sector.

The Committee's principle remit is to provide an interface between Parliamentarians and the UK's scientific communities, ensuring that the former are aware of new developments in science relevant to policy and that the latter are informed of priorities and interests in the development of policy and legislation relevant to scientific sectors.

The Committee plays a pivotal role in the identification of scientific issues that Parliament should address and is used by members representing scientific organisations to raise the profile of the sector's concerns. Recommendations may then be taken up by individual MPs, relevant Select Committees or form the basis of Parliamentary inquiries.

A recent example of the committee's influence is the UK Parliamentary Inquiry into Global Food Crisis which arose as a direct result of the Parliamentary and Scientific Committee's meeting on "Food Security - is it achievable?" (18 November 2008). During the consultation and discussion phase, a UK Department of International Development white paper was scrutinised and Ministers were required to give evidence. The inquiry report will be available shortly and will inform and make recommendations to Government on steps that need to be taken to mitigate against the food growing crisis and to improve food security.

Peter Blezzard Chief Executive Officer 14 June 2010 Group Income Statement

For the year ended 31 March 2010

The Group has no other comprehensive income or expenses. Accordingly the total comprehensive loss for the period is equal to the loss for the period, and no separate "Group Statement of Comprehensive Income" has been shown.

All revenue and costs originate from continuing activities.

Group Statement of Changes in Equity

For the year ended 31 March 2010

Other comprehensive income recognised directly to equity amounts to £nil (2009: £nil).

Other reserve

The other reserve comprises of the fair value of share based payments granted in accordance with IFRS 2.

Merger reserve

The merger reserve arose on the acquisition of PI Bioscience Limited which was accounted for under UK GAAP. This business combination took place prior to 1 April 2006, the Group's date of transition to IFRS and as such the Group has elected not to apply IFRS 3 "Business Combinations".

Group Statement of Financial Position As at 31 March 2010

Group Cash Flow StatementFor the year ended 31 March 2010

Notes to the preliminary results

1. Basis of preparation

While the financial information included in this preliminary announcement has been computed in accordance with International Financial Reporting Standards ("IFRS"), this announcement does not itself contain sufficient information to comply with IFRS. The accounting policies used in preparation of this preliminary announcement have remained unchanged from those set out in the Group's 2008 annual report, apart from the adoption of IAS 1 Presentation of Financial Statements (Revised 2007), IFRS 7 Financial Instruments: Disclosures and IFRS 8 Operating Segments. They are also consistent with those in the full financial statements which have yet to be published. This statement and the preliminary results for the year ended 31 March 2010 were approved by the board of directors on 14 June 2010.

The financial information set out in this preliminary announcement does not constitute the Group's financial statement for the years ended 31 March 2010 and 2009. The financial information for the year ended 31 March 2009 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain anystatement under s237(2) or (3) of the Companies Act 1985. The statutory accounts for the year ended 31 March 2010 will be delivered to the Registrar of Companies following the Company's annual general meetingwhich will be held at 10am on 26 August 2010 at the Company's registered office, 12 South Preston Office Village, Cuerden Way, Bamber Bridge, Preston, PR5 6BL.

Going concern

The Group's existing financial resources together with contractual arrangements with certain economic partners in different geographical areas provides a sound platform for launching the Group's products and generating future sales and revenues. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully despite the current uncertain economic outlook.

The Group's forecasts and projections, which have been prepared for the period to 31 March 2012, including sensitivity analysis and taking account of reasonably possible changes in performance and achievement of certain regulatory milestones, show that the Group should be able to operate within the level

of its current cash resources.

After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Group Financial Statements.

Critical accounting judgements in applying accounting policies

In the application of the Group's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical judgements, apart from those involving estimations, that the Directors have made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Research and development activities

Management have reviewed the Group's research and development activities and have made judgements on the amount of development expenditure it is appropriate to capitalise. The criteria which management have to make judgements about are set out below, in particular that certain products are technically and commercially viable. Research expenditure is charged to the income statement in the period in which it is incurred. Development costs incurred are capitalised when all the following conditions are satisfied:

·; completion of the intangible asset is technically feasible so that it will be available for use or sale, considering its commercial and technological feasibility;

·; the group intends to complete the intangible asset and use or sell it;

·; the group has the ability to use or sell the intangible asset;

·; the intangible asset will generate probable future economic benefits;

·; there are adequate technical, financial and other resources to complete the development and to use or sell the intangible asset, and

·; the expenditure attributable to the intangible asset during its development can be measured reliably.

Regulatory and other uncertainties generally mean that such criteria are not met; in particular, the Group will not capitalise the research and development costs attributable to a product development programme prior to grant of a marketing licence for the product or until there is evidence of probable future economic benefits. Development costs not meeting the criteria for capitalisation are expensed as incurred.

Key sources of estimation uncertainty

Impairment of goodwill

Determining whether goodwill is impaired requires an estimation of the value in use attributable to goodwill. The value in use calculation requires the Directors' to estimate the future cash flows expected to arise and a suitable discount rate in order to the calculate present value.

2. Income tax credit

Unrelieved tax losses of £4,890,000 (2009: £4,546,000) remain available to offset against future taxable trading profits. No provision has been made for deferred income tax on losses carried forward as they will only be available for offset when the Group makes taxable profits arising from the same trade. As the availability of future of profits is uncertain, it has been assumed that the losses will not be recoverable in the foreseeable future.

3. Loss per ordinary share

The loss per ordinary share is based on the loss after taxation of £1,417,075 (2009: £2,255,075) and 31,405,104 (2009: 26,310,813) ordinary shares of 1p each, being the weighted average number of shares in issue during the period.

The share options in issue are anti-dilutive in respect of the basic loss per share calculation and have

therefore not been included.

4. Intangible assets

All additions during the year arise from internal development.

Goodwill

Goodwill is allocated to the Pest Control segment and is not amortised but tested annually for impairment. To the extent that the carrying value exceeds the value in use, determined from estimated discounted future cash flows, goodwill is written down to the value in use and an impairment charge is recognised.

Capitalised development costs

The Group currently has internally generated intangible assets from the development of its Crop Nutrient and Pest Control products. All other development work has been written off as incurred where the criteria for recognition as an asset are not met.

Capitalised development costs are being amortised over a period of 20 years. The balance at 31 March 2010 will be amortised in full over the next 20 years which is considered by management to be representative of the useful economic life of Crop Nutrient and Pest Control products.

Impairment Review

During the year, goodwill and development costs were tested for impairment in accordance with IAS 36 "Impairment of Assets". The recoverable amount exceeded the carrying amount of goodwill recorded. The recoverable amount has been measured on a value in use calculation.

Key Assumptions

Crop Nutrients

The Group has a number of commercially available products and continues to generate new products and new product use from the current technologies, particularly from CaT, PiNT and Alethea. These products are currently generating commercial revenues in Europe, USA, Middle East and Africa. Expansion during the next 12 to 18 months can potentially generate revenues in Latin America and Asia. This expansion is facilitated by the Group's distribution network.

Plant Impact continues to expand Crop Nutrient development in new countries and on new crops. During the year the Group has seen increased activity in Northern and Eastern Europe, USA and Africa. In the coming year the number of territories will expand as a result of the Evaluation, Development and Distribution agreement signed with Arysta LifeScience in February 2010. This agreement, as described in the Chief Executive's Review, will increase the number of countries and significantly increase the number of field trials.

The impairment review for Crop Nutrient products includes the following:

·; A country by country crop review which details:

o Key crops

o Number of hectares

o The Plant Impact products that can be used on key crops

o The potential market size

·; The potential route to market

·; The unique selling points of the Group's products

Pest Control

The Group signed a licensing agreement with Arysta LifeScience for BugOil® on the 29 May 2009. The key assumptions used in the impairment review and licence agreement business model were:

·; Revenues were estimated based on market size, market penetration and the resultant royalties and milestone payments.

o Market size - the estimate is based on industry available information providing size of market for target pests by country, by crop hectare coverage of active ingredient and revenue generated by competing products. BugOil® target pests are mites, whitefly, thrips, aphids and psylla.

o Market penetration was based on a country by country and crop by crop review of the potential selling price for BugOil®, the uniqueness of BugOil's® environmental benefits and the prevailing pressure on countries to use benign pesticides.

o Royalties - a review of market royalty rates was undertaken with an average rate applied. Timing of product sales was based on anticipated regulatory approval by country.

o Milestone payments - estimates of reasonable milestone payments based on regulatory approvals and sales targets have been included in the cash flows.

·; Margins - a detailed review of sales pricing and cost of sales has been undertaken with an estimate of the supply chain method on a country by country basis.

·; Discount rate - a pre-tax rate of 16% was used in the value in use calculation. This discount rate is based on industry experience obtained byArysta LifeScience.

·; A period of 10 years has been selected for cash flow estimates. This is greater than the IAS 36 requirement of 5 years, however is due to the contractual arrangements of the Arysta LifeScience agreement.

·; Growth rate - the growth rate applied to the cashflows after the initial 10 year period amounts to 1%.

·; The cash flow model is based on a limited number of countries and two out of the five target pests. Management believe it is a conservative model.

During the year Plant Impact has been in discussions with both the regulatory authorities in the UK and the USA. These discussions have progressed to the point that the Company is confident that approval in both countries is achievable. The dossiers for regulatory approval were submitted in 2008 for the UK and 2009 for the US. Arysta LifeScience has progressed the approval process in a number of countries, as explained in the Business Review.

During the year Plant Impact has received two license payments from Arysta LifeScience as per the license agreement described above. Three more milestone payments are due once regulatory approval has been granted in the UK, USA and Europe.

Sensitivity analysis, as at 31 March 2010, has indicated that no reasonable foreseeable change in the key assumptions used in the impairment model would result in any changes to the financial statements. 5. Availability of the financial statements

Copies of the full statutory financial statements will be available from the registered office from the 27 August 2010 and will also be available from the Group's website at www.plantimpact.comin accordance with AIM Rule 26. A further announcement will be made in this regard.

6. Annual General Meeting

The Annual General Meeting will be held at 10am on 26 August 2010 at the Company's registered office, 12 South Preston Office Village, Cuerden Way, Bamber Bridge, Preston, PR5 6BL. For further information please visit: www.plantimpact.com