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:

Vernalis 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

An event changing the breakdown of voting rights

Other (please specify):

IN SPECIE TRANSFER

X

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

GAM London Limited

REC - St James's Place Recovery Unit Trust

JRL - SJP GAM Managed - Life

JRP - SJP GAM Managed - Pension

JIS - SJPI GAM Sterling Managed Fund

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

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

4 February 2013

6. Date on which issuer notified:

7 February 2013

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

3% - 13%

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

Indirect

Direct

Indirect

Ordinary 1p Shares

GB00B3Y5L754

11,045,495

11,045,495

58,201,153

58,201,153

13.16%

REC

JRL

18,191,091

18,191,091

0

0

0%

JRP

16,845,643

16,845,643

0

0

0%

JIS

14,238,373

14,238,373

3,594,342

3,594,342

0.81%

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

 None

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

None

Nominal

Delta

Total (A+B+C)

Number of voting rights

Percentage of voting rights

REC - 58,201,153

13.16%

JIS - 3,594,342

0.81%

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

GAM London Limited as discretionary manager holds shares in Vernalis plc through a number of funds:

SJP GAM Managed - Life (JRL) and SJP GAM Managed - Pension (JRP) whole holding in Vernalis plc of 18,191,091 and 16,845,643 shares were transferred internally to St James's Place Recovery Unit Trust (REC).

In addition, SJPI GAM Sterling Managed Fund's (JIS) holding of 14,238,373 shares was reduced to 3,594,342. This reduction in shares was transferred internally to REC.

The above and a small holding from another GAM managed fund (which did not cross any disclosure thresholds) accounts for REC's increased holding.

REC's holding, due to these internal in specie transfers, increased form 2.498% to 13.16% of the voting rights of Vernalis plc.

Overall, GAM London Limited's holding in Vernalis plc is unchanged by these transfers.

Proxy Voting:

10. Name of the proxy holder:

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

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

13. Additional information:

14. Contact name:

David Mackney, CFO

15. Contact telephone number:

+44 (0) 118 938 0015