Re Agreement with US Partner

Vectura announces a new US collaboration agreement with a leading international pharmaceutical company for the VR315 combination asthma/COPD therapy

Chippenham, UK - 3 August 2011: Vectura Group plc ("Vectura"; LSE: VEC) today announces that it has signed a US collaboration, development and license agreement with a US division of an undisclosed leading international pharmaceutical company for Vectura's VR315 product. VR315 is a combination therapy for asthma/COPD delivered using Vectura's proprietary technology.

Under the terms of this agreement, Vectura's partner will be responsible for the commercialisation and manufacture of the product together with clinical development. Vectura will provide support for the US development of VR315, for which it will receive an initial payment of $10 million and up to $35 million upon achievement of pre-determined development milestones. In addition, Vectura will receive a royalty from all VR315 US sales.

Dr Chris Blackwell, Chief Executive of Vectura, commented:

"This deal provides Vectura with an excellent partner, with a strong track record in respiratory product development and commercialisation, committed to the successful development of VR315 for the lucrative US market. This is a major endorsement of the potential value of this product, Vectura's technology and product development expertise."

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About VR315

Combination therapy for asthma and COPD is the biggest and fastest growing sector of the respiratory market, with annual sales currently exceeding US$11 billion. VR315 is being developed as a generic product delivered with Vectura's proprietary Dry Powder Inhaler (DPI) delivery device. Vectura licensed the EU rights to VR315 delivered in Vectura's GyroHaler® DPI device to Sandoz in March 2006. In December 2006, an agreement was signed with Sandoz for the development of the product in the US. In March 2010, Vectura received full development and commercialisation rights back from Sandoz for VR315 in the US.

About Vectura

Vectura Group plc develops inhaled therapies principally for the treatment of respiratory diseases. Vectura's main products target diseases such as asthma and chronic obstructive pulmonary disease (COPD), a growing market that is currently estimated to be worth in excess of $25 billion.

Vectura has six products marketed by its partners and a portfolio of drugs in clinical and pre-clinical development, a number of which have been licensed to major pharmaceutical companies. Vectura has development collaborations and licence agreements with several pharmaceutical companies, including Novartis, Sandoz (the generics arm of Novartis), Baxter and GlaxoSmithKline (GSK).

Vectura seeks to develop certain programmes itself where this will optimise value. Vectura's formulation and inhalation technologies are available to other pharmaceutical companies on an out-licensing basis where this complements Vectura's business strategy.

For further information, please visit Vectura's website at www.vectura.com

Forward-looking statements

This press release contains forward-looking statements, including statements about the discovery, development and commercialisation of products. Various risks may cause Vectura's actual results to differ materially from those expressed or implied by the forward-looking statements, including: adverse results in clinical development programmes; failure to obtain patent protection for inventions; commercial limitations imposed by patents owned or controlled by third parties; dependence upon strategic alliance partners to develop and commercialise products and services; difficulties or delays in obtaining regulatory approvals to market products and services resulting from development efforts; the requirement for substantial funding to conduct research and development and to expand commercialisation activities; and product initiatives by competitors. As a result of these factors, prospective investors are cautioned not to rely on any forward-looking statements. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.