Statement re share subscription and issue of op...

Physiomics announces an employee share subscription scheme and issue of share 
                                    options                                    

Oxford, UK, 27 June 2005 The Board of Physiomics plc (AIM:PYC), a European
systems biology simulation company, has decided to initiate a share
subscription scheme, and issue unapproved share options. These measures are
designed to incentivise and retain key staff and align their interests more
closely with those of shareholders.

The Board of Physiomics has authorised, effective from 24th June 2005, the
issue of 2,000,000 new shares in respect of a share subscription scheme under
which part of the cost is funded as a loan from Physiomics to employees. The
scheme gives all employees an opportunity to subscribe for shares, if they
wish, up to a value of £5000 each. Of these shares, 500,000 have been
subscribed for by Dr John Savin, CEO, and 500,000 have been subscribed for by
Professor David Fell, Science Director, at a price of 1p, being the midday
mid-market price on the 24th June 2005. The balance of the shares have been
subscribed for by members of staff. Excluding Directors, 80% of eligible staff
have taken advantage of this scheme. Membership of the share subscription
scheme requires continuing employment by Physiomics.

The Board has also granted employees a total of 14,158,571 unapproved share
options at 1.75p per Ordinary Share of 0.04p. Of these, Dr John Savin, CEO, has
received 5,708,571 unapproved share options. No other Directors have been
awarded options.

The unapproved share options can be exercised in part on the achievement of
various key performance measures determined by the remuneration committee,
namely the signing of a further contract for Clinical Response Prediction and
significant scientific progress. In addition, half of all awarded options can
only be exercised after at least two years' continuous employment from the
start of the scheme, that is after 24th June 2007. The options expire after 10
years.

Following the issue of shares under the share subscription scheme and their
admission to trading, the Company will have 232,025,599 shares in issue.
Professor David Fell will hold 800,000 shares (0.34% of the enlarged issued
share capital) and Dr John Savin 550,000 shares (0.24% of the enlarged issued
share capital). Application will be made for admission of the new Ordinary
Shares, which will rank pari passu with existing shares, to AIM.

The Chairman of Physiomics, Dr Stephen Parker commented 'For a rapidly
developing high technology business like Physiomics, staff retention and
motivation are essential to long-term shareholder returns. These incentives are
designed to ensure that that enthusiasm and commitment of all employees is kept
within the business and rewarded, to the benefit of all shareholders.
Physiomics has continued to develop its technology since the IPO in December
2004 and is now actively marketing its Clinical Response Prediction service in
Europe and the USA. The recent appointment of Physiomics as a distributor of
Bayer's PK-Sim® products for all therapeutic areas adds to our commercial
activities. '

                                    --ENDS-                                    

For further information please contact:

 

Physiomics plc

Dr Stephen Parker (Chairman) Tel: [phone]

Dr John Savin (CEO) Tel: [phone]

 

Northbank Communications Tel: [phone]

Emma Palmer

Rowan Minnion

Notes to Editors

Physiomics plc

Physiomics plc, founded in 2001, develops and sells services aimed at reducing
the high cost of drug development for pharmaceutical and biotechnology
companies by optimising the design of cancer clinical trials through the
application of computer-based simulations. Physiomics is also applying its
technologies to develop proprietary cancer therapy products for out-licensing
and, to this end, it has secured an option to license two innovative molecules.
Physiomics also acts as a distributor for advanced physiologically-based
pharmacokinetic products and services from Bayer Technology Services GmbH. For
more information go to www.physiomics-plc.com


                                Physiomics plc                                 

                Registered in England and Wales Number 4225086                 

Registered Office: The Magdalen Centre, Oxford Science Park, Oxford OX4 4GA, UK