Product Launch

Phytopharm PLC 26 March 2007 Company Contact: U.K. Investor Relations Contact: Phytopharm plc Financial Dynamics Dr Daryl Rees CEO David Yates Mr Piers Morgan CFO Ben Atwell +44 1480 437 697 +44 207 831 3113 www.phytopharm.com Launch of PhytopicaTM in Italy GODMANCHESTER, Cambridgeshire, U.K. (26 March 2007) - Phytopharm plc (LSE: PYM) ('Phytopharm' or the 'Company') today announces the launch of PhytopicaTM in Italy by its partner, Schering-Plough Animal Health ('Schering-Plough'). In January 2006, Phytopharm entered into an exclusive global agreement with Schering-Plough for the Company's canine skin health product, PhytopicaTM. Under the terms of the agreement, Phytopharm is responsible for manufacturing PhytopicaTM whilst Schering-Plough is responsible for the global sales, marketing and distribution of PhytopicaTM. In April 2006, Schering-Plough launched PhytopicaTM in the UK and the product has enjoyed firm support from veterinary dermatologists and recorded strong sales growth. PhytopicaTM is effective in the management of canine skin health by providing a novel 3 in 1 approach to help maintain a normal healthy immune system, support normal white cell function and provide anti-oxidant benefits. The beneficial effects and excellent safety profile of PhytopicaTM have been proven extensively in clinical trials and the product has been found to be suitable for all dogs whatever size or breed. Following the Italian launch, Schering-Plough will seek to market and distribute PhytopicaTM in further major territories in Europe and the USA. Commenting on today's announcement, Dr Daryl Rees, Chief Executive Officer of Phytopharm, said: 'We are delighted with the launch of PhytopicaTM in Italy by one of the world's leading animal health companies. PhytopicaTM sales in the UK have exceeded our expectations and with Schering-Plough's Italian launch we look forward to further growth.' Commenting on today's announcement, Dr Luciano Cora, Companion Animal Manager at Schering-Plough, Italy said: 'We are very pleased to be launching PhytopicaTM in Italy as it offers a safe and cost effective approach to the management of canine skin health. Following the success in the UK and the increasing demand for safe and effective companion animal products in Italy, we look forward to maximizing the potential of PhytopicaTM.' -ENDS- NOTES TO EDITORS Phytopharm plc Phytopharm is a pharmaceutical development and functional food company whose product leads are generated from medicinal plants. The Company's strategy is to develop these products through 'proof of principle' clinical testing, and then secure partners for late stage development, sales and marketing. Laboratory, manufacturing and clinical work is outsourced to selected specialists, operating under expert in-house management. This operational structure allows access to advanced research techniques whilst maintaining low fixed overheads and a lower development cost structure. Canine dermatological disorders are recognised by veterinarians to be a major problem in small animal practice, with an estimated 15-30% of the global dog population affected by skin conditions (Muller & Kirk's Small Animal Dermatology, 6th Ed, 2000). For further information about Phytopharm please see our website at http://www.phytopharm.com This information is provided by RNS The company news service from the London Stock Exchange

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