Statement re. Press Comment

Phytopharm PLC 22 July 2002 22 July 2002 Phytopharm plc P57 update in response to press speculation Further to recent press speculation, Phytopharm plc (the 'Company') confirms that it is continuing with negotiations regarding the P57 development programme with Pfizer Inc following the demonstration of proof of principle for the project that was announced in December of 2001. The Company will make a further announcement in due course END Enquiries: Phytopharm plc Dr Daryl Rees, Chief Operating Officer Tel: 01480 437697 Financial Dynamics Tel: 0207 831 3113 Ben Atwell NOTES TO EDITORS Phytopharm plc Phytopharm is the leading company in the development of Botanical pharmaceuticals. Botanicals enable the rapid clinical evaluation of plant medicines in chronic and poorly understood diseases. Where novel modes of action are discovered, such research can form the basis for drug discovery platforms, which enable the development of new medicines and the isolation of single chemical entities of clinical importance. Phytopharm has four drug discovery platforms in full development, for obesity and metabolic syndrome, neural and muscular degeneration, inflammation and dermatitis. Phytopharm is developing nine products based on its four drug discovery platforms alongside a number of other projects in early evaluation phase. P57 is a novel appetite suppressant containing extracts derived from a South African plant. Under an agreement announced on August 24th 1998, Pfizer has acquired an exclusive worldwide licence to develop and market P57. Phytopharm will receive up to $32 million in licence fees and milestone payments based upon the achievement of specific objectives. Phytopharm will also receive royalties on sales of P57 by Pfizer. Obesity is a global problem which affects more than 100 million people seriously enough to warrant medical intervention. It is a direct causal contributor to the pathophysiology of many diseases and exacerbates numerous others. Among these are five of the leading causes of death in the industrialised world: stroke, atherosclerosis, cardiovascular disease, diabetes and cancer. According to the World Heath Organisation (WHO), obesity accounts for tens of billions of pounds in direct healthcare costs worldwide. A panel of experts convened by WHO stated on 12 June 1997 that 'obesity's impact is so diverse and extreme that it should now be regarded as one of the greatest neglected public health problems of our time. It has an impact on health, which may well prove to be as great as that of smoking' QUOTE '(World Health Organisation, 1997)' (World Health Organisation, 1997). More information concerning Phytopharm's activities can be found on its Web site at http://www.phytopharm.co.uk. This information is provided by RNS The company news service from the London Stock Exchange