Trading Statement

Vectura Close Period Trading Update

- Strong Increase in Revenues and Significant Reduction in Losses -

Chippenham, UK - 10 May 2010: Vectura Group plc (LSE: VEC) ("Vectura"), the specialty pharmaceutical company, today issues a close period trading update for the 12 months ended 31 March 2010, ahead of the planned publication of the Group's Preliminary results, scheduled for 7 June, 2010.

Key points:

·; Strong revenue growth. Total revenues in the range of £38m - £42m, up over 25% versus 2008/09

·; Research and development expenditure expected to be in the range of £34m - £38m. Restructuring of the VR315 US deal announced on 18 March 2010, where Sandoz have funded the majority of expenditure incurred on VR315 US to 31 March 2010, has lead to savings that reduced expenditure below expectations. Vectura will be responsible for all expenditure on this programme going forward

·; Cash is in line with Management's expectations, at approximately £64m, with an early re-payment of the £6m accrued financial liability (as at 30 September 2009) payable to Royal Securitisation Trust, offsetting the reduced operating cash outflow

·; Loss after taxation is expected to be significantly reduced compared with the £16.7m loss for the year ended 31 March 2009

Commenting on today's update Dr Chris Blackwell, Chief Executive of Vectura, said:

"Accompanying today's news of the receipt of a $7.5m milestone as a result of QVA149 entering Phase III development, we are able to provide a positive update on another robust 12 month's financial performance. These results demonstrate our continued focus on the financial goal of becoming a sustainably cash-generative business following receipt of substantial milestone and royalty revenues from our partnered late-stage respiratory programmes. In the short-term we will continue to manage cash carefully as we fund our investment in our own proprietary development activities from both current revenue streams and cash resources."

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About Vectura

Vectura Group plc is a company that 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 $20 billion. Vectura also develops products for other lung pathologies and non-respiratory diseases.

Vectura has eight products marketed by its partners and a portfolio of drugs in clinical and pre-clinical development, some of which have been licensed to major pharmaceutical companies. 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.

Vectura has development collaborations with several pharmaceutical companies, including Novartis, Sandoz (the generics arm of Novartis), Baxter, GlaxoSmithKline (GSK), Mylan and Otsuka. 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.