Re Agreement

Phytopharm PLC
30 July 2002

30 July 2002



                                   Phytopharm plc

                              Future development of P57



Phytopharm plc ('Phytopharm') announces today that it has agreed with Pfizer
Inc, ('Pfizer') the future development programme for P57, Phytopharm's novel
appetite suppressant for the treatment of obesity and metabolic syndrome.  The
agreement follows the successful demonstration of  proof of principle in man
that was announced in December 2001.



The agreement is in two parts:



-          Pfizer will now progress the P57 development programme concerning
extracts of medicinal plants under the ongoing terms of the Licence and Royalty
Agreement announced between Pfizer and Phytopharm in 1998.  This programme is
intended to result in the development of a botanical prescription pharmaceutical
for the treatment of obesity and metabolic syndrome. Under the terms of this
agreement, Phytopharm will receive up to $32 million in milestone payments as
well as royalties on sales of P57 by Pfizer.  Phytopharm will additionally
receive $2.8 million funding as part of this agreement.



-     Phytopharm will develop semi-synthetic versions of the active molecules
discovered in the P57 programme and will be free to seek other partners to
commercialise these products.



Commenting on these arrangements, Dr Richard Dixey, Chief Executive of
Phytopharm, stated:

'This is a very positive development for Phytopharm with substantial potential
upside. With Pfizer progressing the botanical opportunity, Phytopharm will
concentrate its efforts on the development of semi-synthetic molecules, offering
the possibility of two different milestone and income streams emerging from the
P57 platform.  With over two years' working capital the Company remains well
funded to progress this expanded platform.  '



                                      END

Enquiries:


Phytopharm plc
Dr Richard Dixey, Chief Executive Officer      Tel:          [phone]
                                               Mobile:       [phone]

Financial Dynamics
Ben Atwell / Jonathan Birt                     Tel:          [phone]






NOTES TO EDITORS

Phytopharm plc

Phytopharm is the leading company in the development of Botanical
pharmaceuticals. Botanicals enable the rapid clinical evaluation of plant
medicines in chronic and poorly understood diseases. Where novel modes of action
are discovered, such research can form the basis for drug discovery platforms,
which enable the development of new medicines and the isolation of single
chemical entities of clinical importance. Phytopharm has four drug discovery
platforms in full development, for obesity and metabolic syndrome, neural and
muscular degeneration, inflammation and dermatitis.



Phytopharm is developing nine products based on its four drug discovery
platforms alongside a number of other projects in early evaluation phase.



Obesity is a global problem which affects more than 100 million people seriously
enough to warrant medical intervention.  It is a direct causal contributor to
the pathophysiology of many diseases and exacerbates numerous others.  Among
these are five of the leading causes of death in the industrialised world:
stroke, atherosclerosis, cardiovascular disease, diabetes and cancer.  According
to the World Heath Organisation (WHO), obesity accounts for tens of billions of
pounds in direct healthcare costs worldwide.  A panel of experts convened by WHO
stated on 12 June 1997 that 'obesity's impact is so diverse and extreme that it
should now be regarded as one of the greatest neglected public health problems
of our time.  It has an impact on health, which may well prove to be as great as
that of smoking' (World Health Organisation).





More information concerning Phytopharm's activities can be found on its Web site
                        at http://www.phytopharm.co.uk.




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