OXPZero Feasibility and Option Agreement

Oxford Pharmascience Group plc ("Oxford Pharmascience")

OXPzeroTM Feasibility and Option agreement with Major Healthcare Company

Oxford Pharmascience, the specialty pharmaceutical company that uses advanced pharmaceutic technologies to reformulate medicines, today announces it has signed a feasibility and option agreement with a major healthcare company ("The Company"), to develop a range of undisclosed 'on the go' taste masked products.

Under the terms of the agreement, The Company has engaged Oxford Pharmascience to develop prototypes using its OXPzeroTM technology for a range of non tablet products that can be taken 'on the go' for inclusion in market research to determine the best products. Upon successful completion of the feasibility program, The Company will have an option for an exclusive worldwide license to sell the products under one of its main brands.

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

"This deal represents another major milestone in the commercialisation of our OXPzero technology."

Working with a leading global brand shows both credibility and potential. This is a very exciting deal for the future of our taste masking technology ".

For further information:

Oxford Pharmascience Group Plc

Nigel Theobald, Chief Executive +44 1865 854874

N+1 Singer

Shaun Dobson/ Aubrey Powell +44 20 7496 3000

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.