Repayment of Development Loan & Trading Update

Plant Impact plc

("Plant Impact" or the "Company")

Repayment of Development Loan and Trading Update

Plant Impact today announces that on 31 May, the Company repaid the outstanding principal and accrued interest on its February 2009 Development Loan from Arysta LifeScience Corporation ("Arysta"), as amended by the Company and Arysta in February 2012. This payment of £652,276.13 fully satisfies the Company's obligations to Arysta under the loan agreement, which had been secured by a lien on the Company's intellectual property.

John Brubaker, Chief Executive Officer of Plant Impact, commented: "We are delighted to have repaid this loan to Arysta. Plant Impact now has no debt on its balance sheet and has unencumbered its intellectual property. This creates operational flexibility for the Company to pursue partnerships and alliances with a broader range of industry participants."

Background to the Loan Repayment

In 2009, the company borrowed £750,000 from Arysta in order to fund regulatory activities related to the development of a biological insecticide, (project name "TGT-01"). Under this agreement, Plant Impact was to secure regulatory approvals for the insecticide in the United States and member states within the European Union. Upon receipt of such approvals, Arysta would make milestone payments to Plant Impact which offset the Company's cash obligations under the loan.

At the time of the 2009 agreement, the Company anticipated regulatory approvals during the first six months of 2010, benefiting from a 'fast track' biopesticide regulatory process. Subsequently, both the United States Environmental Protection Agency and the United Kingdom Chemicals Regulatory Directorate determined that TGT-01 was required to be examined and approved under the traditional, slower pesticide regulatory processes designed for synthetic chemical molecules.

As a consequence of this unavoidable delay, the Company and Arysta amended the Development Loan terms in February 2012, narrowing Arysta's license rights to TGT-01, amending Arysta's milestone payment liabilities to Plant Impact, and extending the repayment date of the loan to 31 May 2013. Since then, the Company has received a United States EPA registration for TGT-01 and a £250,000 milestone payment from Arysta. It has not, however, received European Union Annex I approval for the product. Work on European Union approval has been suspended, freeing resource to pursue other nearer-term commercial opportunities for the Company's Crop Enhancement technologies. Following the Company's repayment of the development loan, the Company and Arysta now plan to engage in discussions regarding the status of any outstanding TGT-01 licensing arrangements between the parties and the prospects for a European Union approval.

In December 2012, Arysta assigned to Plant Impact its rights to several synergy patents related to the application of TGT-01 in combination with a variety of conventional insecticides. Steve Adams, the Company's Director of Product Development, commented "TGT-01 is an effective biological insecticide technology, particularly when used in combination with conventional chemistries of the avermectin family, such as abamectin. These new synergy patents allow us to press forward with our development of the product in the United States, where we have received EPA regulatory approval. With growing financial and resource capability, we expect to reinvigorate our regulatory efforts relative to a European Annex 1 registration."

Trading Update

The Company is in the middle of its sales campaigns in Europe. The focus on horticulture in North Europe (including UK) is making satisfactory progress and newly launched products, particularly Amētros™, Plant Impact's culinary apple quality product, have been well received and supported by distribution. First applications of this new product are being made by growers now. At this time, and given a later than usual start to the European growing season, we do not yet have sufficient visibility to judge in-season distributor re-ordering of the Company's products. The Company intends to provide further updates once that information becomes available. Plant Impact's financial objective for the six months' ending 31 July 2013 remains to operate the business on an accounting profit and operating cash-flow break-even basis.

The Company is currently evaluating a number of partnership and distribution alternatives for the coming 2013/14 Brazil season launch of Veritas™, which has been demonstrated over three successive seasons to markedly enhance soybean yields. Launch plans will be announced when finalized over the next two months.

Investor Open Day

Shareholders, media and interested parties are reminded that the Company will host an Investor Open Day on 23 July, 2013 at its research and head office facilities at Rothamsted in Harpenden. The event will begin at 10:00am and end at approximately 2:00pm. Attendees are requested to reply in advance to [email protected]

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