Placing Agreement with Plant Health Care

28 March 2013 

Antisoma plc ("Antisoma")

Placing Agreement with Plant Health Care plc ("PHC")

The Directors announce that on 27 March 2013, Antisoma entered into a placing agreement to subscribe for 3,377,595 new ordinary shares in PHC under PHC's proposal to raise £13.4m ($20.3m) before expenses by means of a placing of and subscription for 17,119,444 new ordinary shares at an issue price of 78p per share. As announced by PHC on 26 March 2013, the placing of 14,164,047 new ordinary shares with certain new and existing institutional investors and the subscription for 2,955,397 new ordinary shares by existing and new investors are subject inter alia to the approval of PHC shareholders at a General Meeting that will be held on 15 April 2013. The placing of 14,164,047 new ordinary shares, which is also conditional upon the subscription for 2,955,397 new ordinary shares, has been fully underwritten by Nomura Code.

Antisoma's agreement with PHC to subscribe for 3,377,595 new ordinary at 78p per share represents a total potential commitment of £2.63 million. The 3,377,595 new PHC ordinary shares would represent approximately 4.8 per cent. of PHC's issued ordinary share capital following the issue of 17,119,444 new ordinary shares under the placing and subscription.

Plant Health Care plc (AIM/CISX: PHC.L) is a leading provider of novel patent protected biological products to the global agriculture markets. PHC's key products are based on its proprietary Harpin technology which is used to trigger growth and self-defence mechanisms within the plants, stimulating more robust plant health and increased yield. These have demonstrated commercial success around the world and have been applied to over 10 million acres (approximately 4 million hectares) of crops. PHC's other products include Myconate, a biological plant growth stimulant which works by stimulating the colonisation of plant roots by beneficial micro-organisms called mycorrhizal fungi and enabling each plant to draw more nutrients and moisture out of the soil. PHC also has a range of other fertiliser and plant nutrient products.

PHC is proposing to raise money to fund the expansion of the R&D programme for the Harpin product platform and commercialisation of existing products. It intends to invest in exploiting the current product portfolio, both to generate revenue and to further establish Harpin as a technology with wide applicability.

PHC's long-term vision is to establish itself as a highly profitable technology licensing business, embedded in the global agrochemical industry, earning most of its income as royalties and licensing fees. As such it intends to develop its capabilities to license out its products to larger companies in the sector by entering into exclusive joint development or licensing agreements with industry majors who have the development and marketing capabilities to maximise the potential of this portfolio. At the research level, there is increasing recognition that biological products can be materially enhanced by the application of sophisticated molecular biology and biochemistry. This, combined with the ability of these molecules to extend patent life of valuable chemical actives, to assist with pest resistance management, to provide complementary activity, and to leverage powerful crop protection distribution channels has led to a wave of interest and activity not seen since the surge of investment in seeds companies by the majors in the mid-nineties.

It is intended that under these licensing agreements, major companies will share the costs, risks and the rewards of commercialisation. PHC intends to offer a differentiated portfolio of development peptides, which can allow it to assign meaningful exclusivity to a number of competing industry majors.

As part of the implementation of this strategy, PHC will create a central HQ where all key operational staff will work. All R&D activities will continue to be managed and implemented from PHC's existing site in Seattle.

In the year ended 31 December 2012, PHC had revenues of $7.8 million in line with the same level in the prior year but with gross profit margin increasing to 55% (2011: 52%). PHC reported a loss before tax of $6.5 million for the year to 31 December 2012 (2011: loss of $7.9 million). PHC had net assets of $14.1 million at 31 December 2012 including cash and liquid investments amounting to $7.7m.

Further information on the PHC placing and subscription is set out in the Placing and Subscription and Notice of General Meeting announcement by PHC of 26 March 2013.

Contacts:

Antisoma plc

Mike Bretherton, Chairman 020 7099 7268

WH Ireland Limited (Nominated adviser)

Chris Fielding, Head of Corporate Finance 020 7220 1650