Placing and Open Offer

Phytopharm PLC 25 March 2008 25 March 2008 Phytopharm plc Results of Placing and Open Offer On 28 February 2008, Phytopharm plc (PYM: London Stock Exchange) ('Phytopharm' or the 'Company') announced a Placing and Open Offer of 38,929,048 New Ordinary Shares at 22p per share to raise approximately £8.6 million (£7.4 million net of expenses) in order, together with the Company's existing funds, to further develop and exploit the potential of the product candidates in its clinical pipeline. The Placing has been fully underwritten by KBC Peel Hunt. Under the terms of the Placing Agreement, KBC Peel Hunt has conditionally placed 22,854,630 Placing Shares with institutional and other investors (subject to clawback to satisfy valid applications by Qualifying Shareholders) at the Issue Price. Additionally, undertakings to subscribe for 16,074,418 New Ordinary Shares, in aggregate, have been received from Existing Ordinary Shareholders. Qualifying Shareholders were invited to subscribe for Open Offer Shares on the basis of 7 New Ordinary Shares for every 10 Existing Ordinary Shares held at the Record Date. Under the Open Offer which closed at 11.00 a.m. on 20 March 2008, valid applications have been received in respect of 22,844,201 shares (representing approximately 58.68 per cent. of the 38,929,048 Open Offer Shares available under the Open Offer). The remaining shares have been placed with institutional investors and with the Directors of Phytopharm in accordance with the Placing arrangements. The Placing and Open Offer remain conditional, inter alia, upon the passing of certain resolutions to be proposed at the Company's Extraordinary General Meeting, to be held at 10.30 a.m. on 27 March 2008, being duly passed and admission of the New Ordinary Shares to trading on the London Stock Exchange and listing on the Official List of the UK Listing Authority becoming effective. The New Ordinary Shares, when issued and fully paid, will rank pari passu in all respects with the Existing Ordinary Shares. Subject to the passing of certain resolutions at the Extraordinary General Meeting, admission of the New Ordinary Shares is expected to become effective on 28 March 2008. The definitions used in this announcement shall have the same meanings given to them in the Prospectus dated 28 February 2008. Notes to Editors Phytopharm plc Phytopharm is a pharmaceutical development and functional food company. Our products are developed from medicinal plants, thereby reducing the development risk, cost and time to market. As a virtual company, Phytopharm's model is centred on a lean cash burn with all laboratory, manufacturing and clinical work out-sourced to specialists, while core competencies such as strategy and management are maintained in-house. Close collaboration with charitable organisations enhances our interaction with worldwide specialists and accelerates our development programmes increasing their value. For further information about Phytopharm please see our website at www.phytopharm.com Enquiries U.K. Investor Relations KBC Peel Hunt (Sponsor, Phytopharm plc FD Stockbroker and Underwriter) Dr Daryl Rees CEO David Yates Capel Irwin Piers Morgan CFO John Dineen Matt Goode +44 1480 437 697 +44 207 831 3113 +44 207 418 8900 This information is provided by RNS The company news service from the London Stock Exchange