Placing and Open Offer

Phytopharm PLC
25 March 2008

25 March 2008



                                 Phytopharm plc


                       Results of Placing and Open Offer


On 28 February 2008, Phytopharm plc (PYM: London Stock Exchange) ('Phytopharm'
or the 'Company') announced a Placing and Open Offer of 38,929,048 New Ordinary
Shares at 22p per share to raise approximately £8.6 million (£7.4 million net of
expenses) in order, together with the Company's existing funds, to further
develop and exploit the potential of the product candidates in its clinical
pipeline. The Placing has been fully underwritten by KBC Peel Hunt.


Under the terms of the Placing Agreement, KBC Peel Hunt has conditionally placed
22,854,630 Placing Shares with institutional and other investors (subject to
clawback to satisfy valid applications by Qualifying Shareholders) at the Issue
Price. Additionally, undertakings to subscribe for 16,074,418 New Ordinary
Shares, in aggregate, have been received from Existing Ordinary Shareholders.


Qualifying Shareholders were invited to subscribe for Open Offer Shares on the
basis of 7 New Ordinary Shares for every 10 Existing Ordinary Shares held at the
Record Date.


Under the Open Offer which closed at 11.00 a.m. on 20 March 2008, valid
applications have been received in respect of 22,844,201 shares (representing
approximately 58.68 per cent. of the 38,929,048 Open Offer Shares available
under the Open Offer).  The remaining shares have been placed with institutional
investors and with the Directors of Phytopharm in accordance with the Placing
arrangements.


The Placing and Open Offer remain conditional, inter alia, upon the passing of
certain resolutions to be proposed at the Company's Extraordinary General
Meeting, to be held at 10.30 a.m. on 27 March 2008, being duly passed and
admission of the New Ordinary Shares to trading on the London Stock Exchange and
listing on the Official List of the UK Listing Authority becoming effective.


The New Ordinary Shares, when issued and fully paid, will rank pari passu in all
respects with the Existing Ordinary Shares. Subject to the passing of certain
resolutions at the Extraordinary General Meeting, admission of the New Ordinary
Shares is expected to become effective on 28 March 2008.


The definitions used in this announcement shall have the same meanings given to
them in the Prospectus dated 28 February 2008.


                                Notes to Editors


Phytopharm plc


Phytopharm is a pharmaceutical development and functional food company. Our
products are developed from medicinal plants, thereby reducing the development
risk, cost and time to market. As a virtual company, Phytopharm's model is
centred on a lean cash burn with all laboratory, manufacturing and clinical work
out-sourced to specialists, while core competencies such as strategy and
management are maintained in-house. Close collaboration with charitable
organisations enhances our interaction with worldwide specialists and
accelerates our development programmes increasing their value. For further
information about Phytopharm please see our website at www.phytopharm.com


Enquiries                        U.K. Investor Relations           KBC Peel Hunt (Sponsor,

Phytopharm plc                   FD                                Stockbroker and Underwriter)

Dr Daryl Rees CEO                David Yates                       Capel Irwin

Piers Morgan CFO                 John Dineen                       Matt Goode

[phone]                 [phone]                  [phone]



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