License agreement signed with Bayer

Oxford Pharmascience Group plc

("Oxford Pharmascience" or "the Company")

License agreement signed with Bayer

Oxford Pharmascience, the specialty pharmaceutical company that uses advanced pharmaceutic technologies to reposition medicines, today announces it has signed a license agreement with Bayer Consumer Care AG in Basel ("Bayer") to allow them to manufacture a calcium and Vitamin D soft chew using the Company's OXP chew™ technology.

Under the terms of the agreement, Bayer is being granted a ten year license to manufacture a calcium and vitamin D soft chew product.

Nigel Theobald, Chief Executive, Oxford Pharmascience Group Plc, commented:

"Partnering with Bayer is further evidence of our credibility in commercialising our technology platforms with major pharmaceutical companies. This is our first commercial relationship with a major global pharmaceutical company and their commitment and interest in our technologies is further evidence that our new strategic direction is working".

For further information:

Oxford Pharmascience Group Plc

Nigel Theobald, Chief Executive +44 1865 854874

Hybridan LLP (Broker)

Claire Noyce / Deepak Reddy +44 20 7947 4350

ZAI Corporate Finance (Nominated Adviser)

John Depasquale/ John Treacy +44 20 7060 2220

About Oxford Pharmascience Group Plc

Oxford Pharmascience Group Plc develops advanced yet practical pharmaceutical technologies to enable reformulation that adds value to off patent and soon to be off patent drugs. The Company does not manufacture or sell its own pharmaceutical products but instead seeks to license its technologies to a network of partners, mainly leading pharmaceutical companies with Rx (prescription) and OTC (Over the Counter) branded portfolios. These partners use our technologies to reposition their products helping them sustain market share and profitability by delivering improved health outcomes and/or clinical profiles via reformulated versions of the same API (active pharmaceutical ingredient).

Oxford Pharmascience Group Plc develops platform technologies that have application across multiple drug categories and can be leveraged across a broad range of reformulation problems. This business model allows us to provide solutions across the industry and fund the ongoing development of cutting edge technologies to better serve the needs of our partners. The partner companies who adopt our technology pay an up-front license fee followed by development milestone payments and then royalties on finished products sold using the technology. OXP invests the upfront licence fee to optimise product development and to ensure seamless technology transfer to the pharmaceutical partner.