Issue of Equity

11 March 2008
                     ECO Animal Health Group plc ("ECO" or "the Company")
Proposed placing of new ordinary shares at 100p per share to raise up to £10m
after expenses, proposed offer of a scrip dividend and notice of General Meeting

ECO is please to announce a conditional placing of up to 10,526,316 shares ("the
Placing Shares") with institutional investors at a price of 100p per share ("the
Placing Price") to raise up to £10 million after expenses ("the Placing").  The
Placing is conditional on resolutions being passed at a General Meeting of the
Company to be held on 28 March 2008. The Placing shares are expected to be
admitted to AIM and commence trading on 31 March 2008.
Eco Animal Health Ltd ("ECO Ltd"), a wholly owned subsidiary of the Company, was
formed in 1993 as a joint venture to develop and market pharmaceutical products
principally for the treatment of medical conditions in food producing animals
worldwide. This business now comprises the Group's core activity.
ECO Ltd has successfully obtained marketing authorisations for in excess of 600
different treatments in over 70 countries (also known as drug registrations).
Registration is a pre-requisite in every country before sales can begin and the
veterinarian and regulatory bodies that grant these registrations have become
increasingly stringent in their testing regimes to ensure the safety of the
treatments as they affect not only the animals but also consumers and the
environment.
To date the Group has invested over £20 million in applying for and obtaining
marketing authorisations. In addition, applications for a further 100 or so
approvals have been submitted and trial work is commencing. The Directors
believe that this is a major achievement for a relatively small company such as
ECO Ltd, which has funded the majority of this work from the Group's own
resources.
An opportunity now exists to accelerate the registration timetable, which would
allow ECO Ltd to achieve more authorisations in a shorter time and also carry
out multiple trial work (as opposed to single trials which, due to the very
nature of sick animals, can produce inconclusive results). Furthermore, the
Board has also identified investment opportunities within the pet medication
market. The Board believes that the Group's existing knowledge and expertise of
animal pharmaceutical products will generate significant opportunities within
this sector.
ECO Ltd works only with proven, licensed, active pharmaceutical ingredients and
does not engage in bio-research of new molecules and owns all intellectual
property rights to Aivlosin, its high performance antibiotic.
The Board believes that many more treatments in a wider range of animal species
can be proven to be highly effective and safe. This additional work involved in
obtaining further registrations is also expected to benefit from the licences
already granted for Aivlosin whereby the toxicity and environmental studies
could be used to shorten the time to approval. The permissions granted so far to
sell Aivlosin have enabled the Group to generate higher margin drug sales and go
a long way towards the funding of our ongoing research and registration
workload.
Without the planned cash injection ECO Ltd could continue with its current
registration programme but miss the accelerated sales and profit opportunities
which the Board believes will come from multiple trial work and also entering
the pet medication market.
The proceeds of this fund raising together with the ongoing support of the
Group's bankers, Natwest, and, the effect of both the strong cash generation
from new Aivlosin sales and the intended launch in the near term of the newly
registered pet products, should provide the Company with the growth platform
that will create significant value for shareholders.
ECO has entered into a Placing Agreement with Cenkos Securities plc ("Cenkos"),
pursuant to which Cenkos Securities has, on behalf of Eco, conditionally placed
the Placing Shares with various investors at the Placing Price.

The scrip dividend
On 17 December 2007, the Company announced that the Board intended to introduce
a Scrip Dividend as an alternative to the cash dividend.  Acceptance of the
Scrip Dividend will enable the Board to target a greater proportion of the
Group's resources on the generation of profit from the Group's drug registration
programmes. There is still work being done to complete, inter alia, the most
important regulatory work for Aivlosin in the USA and for the outstanding
presentations of the drug in Europe. The availability of additional cash will
accelerate this process and thus allow the Group to begin sales earlier and
generate additional profit.
If shareholders approve the proposal to offer a Scrip Dividend the record date
for the interim dividend for the year ending 31 March 2008 of 1.7 pence (net)
per share will be moved to 28 March 2008.  The payment date will remain
unchanged at 12 May 2008.
Contacts:
ECO Animal Health Group plc
Peter Lawrence                                               020 8336 6190
Cenkos Securities plc
Stephen Keys                                                   020 7397 8926