First day dealing

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN THE UNITED STATES, CANADA, THE
REPUBLIC OF IRELAND, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR AUSTRALIA, OR THEIR
RESPECTIVE TERRITORIES OR POSSESSIONS

Walcom Group Limited

First day of trading

Walcom Group Limited ("Walcom" or "the Company"), the China based manufacturer
and distributor of "clean" animal feed additives, announces the commencement of
dealings in its common shares on the AIM Market of London Stock Exchange plc
today, under the ticker code `WALG'.

Walcom's products are based on Cysteamine, a natural metabolite generated in
animals' bodies which participates in animals' physiological `growth axis' to
stimulate the animals' natural growth hormone level. The Company's feed
additives improve the health of the animals, reduce mortality rates, shorten
the time taken to reduce maturity, increase the protein content in animal food
products, increase egg laying and reduce eggshell breakage and build resistance
to disease. Walcom's feed additives are "non hormonal", "non antibiotic" and
"non gene-altering".

Placing statistics

Placing price per share                                             35p      
                                                                             
Number of new shares placed on behalf of the Company             4,491,735   
                                                                             
Gross proceeds of the placing                                  £1.57 million 
                                                                             
Estimated net proceeds of the placing available to the         £1.01 million 
Company                                                                      
                                                                             
Market capitalisation at the placing price on admission       £22.72 million 
                                                                             
Number of shares in issue on admission                          64,910,891   

John East and Partners Limited is acting as Nominated Adviser and King &
Shaxson Capital Limited is acting as Broker.

Francis Chi, Walcom Chief Executive commented:

"We have an extremely strong track record in developing "clean" animal feed
additivesbacked byhighly motivatedresearch andmanagement teams.

"Our listing on AIM will raiseour international profileand will provide us with
theextra working capital needed to increase our market penetration worldwide".

                                                               21 December 2006

Enquiries:

Walcom                                                        [phone]
                                                                            
  Francis Chi, Chief Executive Officer                                      
                                                                            
  Albert Wong, Chief Financial Officer                                      
                                                                            
John East and Partners                                      [phone]
                                                                            
  Jeffrey Coburn/Bidhi Bhoma                                                
                                                                            
King & Shaxon Capital                                      + 44 20 7426 5986
                                                                            
  Nick Bealer                                                               

Disclaimer

This announcement relating to the Company does not constitute or form part of,
and should not be construed as an offer or invitation to sell or issue or any
solicitation of any offer to purchase or subscribe for any securities in the
Company in any jurisdiction. Neither this announcement, nor any part of it nor
anything contained or referred to in it, nor the fact of its distribution,
should form the basis of or be relied on in any connection with or act as an
inducement in relation to a decision to purchase or subscribe for or enter into
any contract or make and other commitment whatsoever in relation to any such
securities. This announcement does not constitute a recommendation regarding
the securities of the Company.

The information contained in this announcement is not for publication or
distribution to persons in the United States of America, its territories or
possessions or to any US person or for the account of a US Person (within the
meaning of Regulation S under the US securities Act of 1933, as amended).
Neither this announcement nor any copy of it may be taken or transmitted to
Australia, Canada or Japan or the Republic of South Africa or to Canadian
persons or to any Securities analyst or other person in any of those
jurisdictions. Any failure to comply with this restriction may constitute a
violation of United States, Australian, Canadian, or South African or Japanese
securities law. The distribution of this Presentation in any other
jurisdictions may be restricted by law and persons into whose possession this
Presentation come should inform themselves about, and observe any such
restrictions. The securities referred to are not being registered under the US
Securities Act of 1933, as amended, or under the applicable securities laws of
Canada, Australia, South Africa or Japan, and may not be offered or sold within
Canada, Australia, South Africa or Japan to any national, resident or citizen
of Canada, Australia, South Africa or Japan.

Forward-looking statements are based on current information that is, by its
nature, subject to rapid and even abrupt changes. Due to risks and
uncertainties associated with the Company's business, actual results could
differ materially from those projected or implied by management's
forward-looking statements. These risks and uncertainties include, but are not
limited to: changes and shifts in customer demand away from the Company's
products to competitor products; the Company's ability to maintain and
establish strategic relationships; the effects of competition; the risks
inherent in the development and delivery of complex technologies; the Company's
ability to attract, retain and motivate qualified personnel; the emergence of
new markets for the Company's products and services; the Company's ability to
compete in those markets based on timeliness and cost and market demand. In
addition, new product introductions are subject to the risks and uncertainties
that typically accompany development and delivery of complex products to the
marketplace, including product development delays and defects. In light of
these risks, uncertainties and assumptions, the events described in the
forward-looking statements in this document may not occur.