Re Agreement

Phytopharm PLC
01 May 2003

                                                                      1 May 2003

                         Collaboration with Yamanouchi
            to Develop and Commercialise Alzheimer's Drug (PYM50028)

      First Drug Licensed from Phytopharm's P58 Neurodegeneration Platform


Phytopharm plc (PYM: London Stock Exchange) announces today that it has signed a
licensing agreement with the leading Japanese pharmaceutical company, Yamanouchi
Pharmaceutical Co., Ltd., for the development and commercialisation of PYM50028,
a synthetic neuroprotective and neuroregenerative agent that has been selected
from the library of compounds within the company's P58 discovery platform.  The
initial target indication licensed by Yamanouchi is Alzheimer's disease.
Yamanouchi also receives options to develop the product for additional
indications, as detailed below.

Under this agreement, Yamanouchi has acquired an exclusive licence to develop,
manufacture and market PYM50028 for the treatment of Alzheimer's disease in
Japan and some other Asian countries.  Phytopharm will receive $3 million
immediately, followed by a further five milestones totalling $17 million payable
over the next two years, subject to the achievement of specific objectives.  In
total, Phytopharm is entitled to $33 million of licence fees and potential
milestone payments with respect to the Alzheimer's indication.

Yamanouchi has also acquired the option to license PYM50028 for the additional
indications of Parkinson's disease, Lewy body dementia, vascular dementia and
mild cognitive impairment, for which Phytopharm will receive additional licence
fees and milestones.  Further details of these fees and milestones are based on
each indication's market potential relative to the Alzheimer's indication but
are not further disclosed.

Phytopharm will also receive royalties on sales of PYM50028 by Yamanouchi for
all indications developed.

Phytopharm will continue to develop PYM50028 in other territories as a
prescription drug for neurodegenerative conditions including Alzheimer's,
Parkinson's, vascular dementia and mild cognitive impairment.  After an
extensive programme of pre-clinical development, the product is planned to enter
Phase II clinical trials for Alzheimer's disease in the second half of 2003.
Phytopharm and Yamanouchi will share all data pertaining to PYM50028, with
Phytopharm retaining the right to use the data generated to seek licensees for
other territories in due course.

The markets licensed to Yamanouchi under this agreement constitute approximately
15% of the world pharmaceutical market (source: IMS).  The global annual market
for Alzheimer's and Parkinson's disease is estimated to be worth in excess of $3
billion (source: Cognos and Pharmasource); it is also estimated that in the US,
the total annual cost burden for Alzheimer's disease exceeds $100 billion
(Source: US Alzheimer's Association).

Commenting on the agreement, Dr Toichi Takenaka, President & Chief Executive
Officer of Yamanouchi stated: 'We look forward to working with Phytopharm to
develop PYM50028, a novel product having the potential to make a significant
impact within the CNS marketplace.  This collaboration not only demonstrates our
enthusiasm for Phytopharm's discovery but also reflects the commitment of
Yamanouchi to identify and develop important medicines for neurodegenerative
conditions such as Alzheimer's disease.  This is a distressing disease without
effective treatment, whose prevalence is growing rapidly in Japan.'

Commenting on today's announcement, Richard Dixey, Chief Executive of
Phytopharm, said:

'We are delighted to be working with Yamanouchi which is one of the leading
Japanese pharmaceutical companies with an outstanding record of achievement in
research led innovation.  In addition to this agreement being strongly cash
positive for Phytopharm, it confirms the true potential of both PYM50028 and the
P58 platform, as well as the company's strategy of seeking a Japanese partner
for this exciting product.'


                                    - ENDS -

Enquiries:

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

Financial Dynamics
David Yates / Ben Atwell                           Tel:         [phone]


A presentation for analysts will be held at Nomura International plc, 1 St
Martin's-le-Grand, London EC1A 4NP at 9:30am today.  Coffee will be available
from 9.15am.  A webcast of the analyst presentation will be available from
Friday 2 May on the Company's website:

                              www.phytopharm.co.uk


NOTES TO EDITORS

Phytopharm plc

Phytopharm is a leading company in the development of Botanical pharmaceuticals.
Botanicals, extracts of medicinal plants manufactured to pharmaceutical
standards, 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 metabolic syndrome and obesity, neurodegeneration, inflammation
and dermatitis, and is developing libraries of synthetic chemical compounds
based this research.

PYM50028 has arisen from research into the activity of an Asian medicinal plant.
In pre-clinical studies using a variety of models, this single chemical,
synthetic product has been demonstrated to be neuroprotective, to reverse the
decrease of neuronal growth factors and to reverse neuronal degeneration
observed in the ageing brain.  Importantly, this product restores levels of
proteins that are altered in the ageing brain, returning them to levels seen in
the young, causing beneficial outgrowth and branching of neurites and restoring
the levels of muscarinic acetylcholine and dopaminergic receptors. PYM50028
thereby offers the potential of disease modification in poorly treated but
prevalent neurodegenerative conditions such as Alzheimer's and Parkinson's
disease.  The P58 research platform, from which PYM50028 has been developed, is
protected by nine global patent families and contains a library of related
chemical compounds that share this activity.

Yamanouchi Pharmaceutical Co., Ltd.

Yamanouchi Pharmaceutical Co., Ltd., established in 1923 and headquartered in
Tokyo, Japan, is a leading pharmaceutical company in Japan. Yamanouchi is
expanding its business base to Europe, the United States and Asia and employs
about 9,000 people worldwide.  As a research-based developer, manufacturer and
marketer, Yamanouchi has introduced several world-class drugs to the
international market, including the H2 antagonist, famotidine; the calcium
antagonist, nicardipine; and tamsulosin, a treatment for functional symptoms of
benign prostatic hyperplasia.


 More information concerning Yamanouchi can be found on its Web site at http://
                               www.yamanouchi.com


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