Issue of Equity

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES, JAPAN, CANADA OR AUSTRALIA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.

Oxford Pharmascience Group plc

("Oxford Pharmascience" or "the Company")

Placing to raise £1.1m

Oxford Pharmascience, the speciality pharmaceutical company that uses advanced pharmaceutic technologies to reposition medicines , is pleased to announce that it has conditionally raised £1,130,000 (before expenses) through the placing of 113,000,000 New Ordinary Shares at a placing price of 1p per Ordinary Share with certain institutional and other investors.

Hybridan LLP have procured placees for the New Ordinary Shares conditional upon, among other things, the passing of a resolution at a General Meeting to be held on or around 21 November 2011 and Admission of the New Ordinary Shares to trading on AIM. A circular to shareholders, containing further details of the Placing and notice of a General Meeting (the "Circular"), is due to be posted to shareholders tomorrow. A further announcement containing the details in the Circular will be made at this point.

The net proceeds of the Placing will be used by the Company to continue developing its business in Brazil and to progress and initiate commercialisation of its pipeline which is focused on technologies to reposition and add value to off patent NSAIDs and Statins.

As part of the Placing, David Norwood is subscribing for 10,000,000 New Ordinary Shares at the Placing Price and Marcelo Bravo is subscribing for 2,500,000 New Ordinary Shares at the Placing Price. Their shareholdings pre and post are as follows:

As such, under the AIM Rules for Companies, David Norwood and Marcelo Bravo are both deemed to be related parties and their participation in the Placing is deemed to be a related party transaction. The Directors (other than David Norwood and Marcelo Bravo) consider, having consulted with ZAI Corporate Finance, that the terms of the Placing are fair and reasonable insofar as shareholders of the Company are concerned.

Nigel Theobald, Chief Executive, said:

 "Being able to raise this additional finance in difficult market conditions, underlines the strength of our technology and business plan. The Fundraising will enable us to take full advantage of the opportunities that are available to us and accelerate the scale up of our business".

For further information:

Oxford Pharmascience Group Plc

Nigel Theobald, Chief Executive +44 1865 854874

Hybridan LLP (Broker)

Claire Noyce +44 20 7947 4350

ZAI Corporate Finance (Nominated Adviser)

John Depasquale +44 20 7060 2220

The following definitions apply throughout the Announcement, unless the context otherwise requires:

"Admission" the admission of the Placing Shares to trading on AIM becoming effective in accordance with rule 6 of the AIM Rules

"AIM" a market operated by the London Stock Exchange

"AIM Rules" the AIM Rules for Companies and/or the AIM Rules for Nominated Advisers as applicable

"General Meeting" the general meeting of the Company, the details of which are to be set out in the Circular

"Group" the Company and its subsidiary undertakings

"London Stock Exchange" London Stock Exchange plc

"New Ordinary Shares" the Placing Shares

 "Ordinary Shares" the ordinary shares of 0.1p each in the capital of the Company

"Placing" the placing by Hybridan on behalf of the Company of the Placing Shares at the Placing Price, in accordance with the Placing Agreement

 "Placing Price" 1 pence per New Ordinary Share

"Placing Shares" the 113,000,000 new Ordinary Shares to be issued to placees pursuant to the Placing Agreement

 "Resolution" the resolutions to be proposed at the General Meeting as set out in the Notice of General Meeting

"Shareholder" a holder of Ordinary Shares