Trading Update

Source BioScience plc

('Source BioScience', the 'Group')

Trading update for the year ended 31 December 2014

Nottingham, UK, 21 January 2015 - Source BioScience plc (LSE: SBS), the international laboratory services and products business, today announces an update on its trading performance for the year ended 31 December 2014.

Trading

The Group expects full year results for 2014 to be in line with expectations.

Source BioScience has sustained the consistent progress previously reported during 2014 and the results are expected to demonstrate significant growth in both revenue and adjusted earnings compared with the prior year.

Whilst top line growth has been slightly lower than expected, mainly attributable to pricing pressures in the highly competitive life science research market, sales mix and operational efficiencies have delivered improved adjusted profit margins for the Group, stated before non-recurring items.

As a result, the Group expects full year adjusted profits for 2014, before non-recurring items, to be in line with expectations.

Highlights

Commercial initiatives to increase geographic reach and exploit opportunities in the USA have been rolled out during the year as previously reported. This reflects the Group's ambition to further progress its laboratory services activities, especially in Healthcare diagnostics, DNA sequencing and stability storage.

Investment has also been made in a number of operational programmes to increase capacity, improve the efficiency of operations and respond to customer demand. These have included:

· investment in laboratory infrastructure in the USA including molecular biology laboratory capability in Atlanta and DNA sequencing in Los Angeles

· relocation and consolidation of specialised LifeSciences laboratory activities from Germany to the UK, enabling the Berlin facility to focus on Overnight Service™ for DNA sequencing

· opening of a new Scotland-based DNA sequencing laboratory in state of the art facilities at BioCity Scotland

· investment in high throughput, high capacity serology production capability and serology laboratories at the Group's Rochdale, UK site and

· capital investment in additional, specialised bio-storage facilities in the UK and the USA to meet customer demand from the bio pharma industry for storage and laboratory services.

The integration of the storage and serology businesses acquired in 2013 is substantially complete and the investments made during the year serve to consolidate expertise and broaden the service offering to leverage the full range of Group expertise to the healthcare, life science research and biopharma markets.

Dr Nick Ash, CEO of Source BioScience, commented:

"We are pleased to report that performance has been in line with expectations for the full year 2014 and are encouraged by the opportunities and outlook for 2015. During 2014 we completed a number of significant infrastructure projects to improve operational efficiencies, enhance capacity to meet demand and address new markets for the Group's portfolio in the USA."

Source BioScience will announce preliminary results for the year ended 31 December 2014 in the second half of March 2015.

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For further information, please contact:

Source BioScience plcDr Nick AshChief Executive OfficerT: +44 (0)115 973 9010www.sourcebioscience.com

N+1 Singer (Financial Advisor, Sponsor and Broker)

Aubrey PowellTel: +44 (0)20 7496 3000www.n1singer.com

About Source BioScience:

Source BioScience is a trusted provider of state-of-the-art products and services to the healthcare and clinical, life and applied scientific and biopharma industries. It is an international business with centres in four countries and customers in over 90 countries. The Group offers a complementary portfolio of products and services that share common technologies, lab processes, infrastructure and expertise. These include clinical diagnostics, genomics, proteomics, drug discovery and development research as well as controlled environment storage and testing services for a diverse range of markets. These products and services are provided to a large and diverse customer base including the top 50 pharmaceutical companies, leading universities and research institutes worldwide, the UK NHS and other healthcare providers. The Group is listed on the Premium Main Market of the London Stock Exchange (LSE: SBS).