Holding(s) in Company

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached:

SkyePharma PLC

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

 X

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to the notification obligation:

Zazove Associates LLC ("Reporting Person")

4. Full name of shareholder(s) (if different from 3.):

National Railroad Retirement Investment Trust

San Diego County Employees Retirement Association

Virginia Retirement System

Zazove Aggressive Growth Fund, L.P.

Zazove High Yield Convertible Securities Fund, L.P.

5. Date of the transaction and date on which the threshold is crossed or reached:

May 31, 2009

July 7, 2009

October 23, 2009

January 20, 2010

January 13, 2012

6. Date on which issuer notified:

 27 April 2012

7. Threshold(s) that is/are crossed or reached:

May 31, 2009 - 12%

July 7, 2009 - 24%

October 23, 2009 - 25%

January 20, 2010 - 35%

January 13, 2012 - 36%

8. Notified details:

A: Voting rights attached to shares

Class/type ofshares

if possible usingthe ISIN CODE

Situation previousto the triggeringtransaction

Resulting situation after the triggering transaction

NumberofShares

NumberofVotingRights

Numberof shares

Number of votingrights

% of voting rights

Direct

Direct

Indirect

Direct

Indirect

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financialinstrument

Expirationdate

Exercise/ConversionPeriod

Number of votingrights that may beacquired if theinstrument isexercised/ converted.

% of votingrights

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financialinstrument

Exerciseprice

Expirationdate

Exercise/Conversionperiod

Number of votingrights instrumentrefers to

% of voting rights

Convertible Bond

Each £1,000 of the principal amount converts into 269.5418 shares

 May 4, 2024

 N/A

 8,622,372

Nominal

Delta

 36.01%

N/A

Total (A+B+C)

Number of voting rights

Percentage of voting rights

 8,622,372

 36.01%

9. Chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held, if applicable:

The Reporting Person is an investment advisor with discretionary authority over portfolios that, in aggregate, hold £31,989,000 principal amount of the issuer's 6.000% convertible bonds that mature May 4, 2024 (the "Convertible Bonds"). The Convertible Bonds are held by the following undertakings that would hold 3% or more upon conversion based on the current shares outstanding:

National Railroad Retirement Investment Trust (convertible into 1,549,865 shares; 6.47% of current shares outstanding)

San Diego County Employees Retirement Association (convertible into 1,051,213 shares; 4.39% of current shares outstanding)

Virginia Retirement System (convertible into 1,574,124 shares; 6.57% of current shares outstanding)

Zazove Aggressive Growth Fund, L.P. (convertible into 1,266,576 shares; 5.29% of current shares outstanding)

Zazove High Yield Convertible Securities Fund, L.P. (convertible into 750,673 shares; 3.14% of current shares outstanding)

Proxy Voting:

10. Name of the proxy holder:

 N/A

11. Number of voting rights proxy holder will cease to hold:

N/A

12. Date on which proxy holder will cease to hold voting rights:

N/A

13. Additional information:

14. Contact name:

 John Murphy

15. Contact telephone number:

 020 7881 1174