Trading Update

Dechra Pharmaceuticals PLC
12 January 2005


Issued by Citigate Dewe Rogerson on behalf of Dechra Pharmaceuticals PLC
Date: Wednesday 12 January 2005

                                                               Embargoed: 7.00am

                           Dechra Pharmaceuticals PLC

Dechra Pharmaceuticals PLC ('the Group') issues the following update ahead of
publication of the Group's interim results for the six months ended 31 December
2004 which are scheduled to be announced on Tuesday 1 March 2005.

Trading and Product Development Update
Both our Services and Pharmaceuticals Divisions have shown encouraging growth
with trading in the first half of this financial year continuing to be strong
which has resulted in Group sales being over 10% ahead of the same period last
year, reflecting both improving market conditions and increased market share.

Margin improvements have also been attained with Group operating margin before
goodwill amortisation being in excess of 5% compared to 4.78% for the same
period last year.

Net debt at 31 December 2004 stood at approximately £13.2 million compared to
£17.3 million at the same point last year. As expected, net debt has risen from
the year end position at 30 June 2004, reflecting the normal working capital
cycle of the Group.

During the last six months there have been a number of achievements within
Product Development including:-

   •The Group has gained a full EU licence for Felimazole(R) through the
    mutual recognition procedure. Felimazole(R) was launched by our marketing
    partner, Janssen Animal Health in the key European territories, France and
    Germany towards the end of the period. With other territories coming on
    stream during 2005, we remain encouraged by the interest in the product.

   •In November, we subsequently received a UK licence for a new 2.5mg
    Felimazole(R) tablet. This new licence offers increased flexibility and
    dosing options with an improved safety profile.

   •In December we were also granted a range extension for a 30mg Vetoryl(R)
    capsule which is specifically targeted at small breed dogs within the UK.

   •The Group continues to make very satisfactory progress in the USA, with
    our projects to licence Vetoryl(R) and Felimazole(R) both on track. As
    expected, the progression of these products will lead to an increase in
    investment in product development in the second half of the current
    financial year.

We are pleased with our first half performance and current trading and are
confident that our performance for the financial year ending 30 June 2005 will
be in line with market expectations.

Enquiries:
Ian Page, Chief Executive                         Fiona Tooley, Director
Simon Evans, Group Finance Director               Katie Dale, Account Manager
Dechra Pharmaceuticals PLC                        Citigate Dewe Rogerson
Tel: [phone]                                 Tel: [phone]
Mobile: [phone] (IP) or 07775 642220 (SE)    Mobile: [phone] (FMT)
www.dechra.com


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