Re Agreement

Phytopharm PLC
23 June 2003

23 June 2003


                Collaboration with OPTIMA (University of Oxford)
       to Advance the Development of PYM50028 as a Treatment for Dementia


Phytopharm plc (PYM: London Stock Exchange) announces today that it has entered
into an agreement with the Oxford Project to Investigate Memory and Ageing
(OPTIMA) regarding the clinical development of PYM50028, its novel oral
treatment for dementias including Alzheimer's disease. Under the joint
leadership of Professor David Smith (Project Leader, OPTIMA) and Professor Robin
Jacoby (Principal Investigator), OPTIMA will enrol patients with memory
impairment into the Phase II proof of principle study, which is expected to
commence dosing in Q4 2003.

The study will utilise a randomised, double blind, placebo controlled design,
and evaluate the safety, efficacy and pharmacokinetic profile of PYM50028 after
repeated oral administration to patients with dementia.  An interim safety
analysis will be conducted during Q2 2004 and the study should complete by Q4
2004.

OPTIMA was founded in 1988 as part of University of Oxford's Department of
Pharmacology and has since enrolled over 800 normal and cognitively impaired
elderly people. Regular assessment of these volunteers has enabled the assembly
of a unique and growing database of psychological, neurological, biochemical and
anatomical information about the effects of ageing and cognitive impairment.
The database of information enables better understanding of the key events that
may trigger dementia and insights into novel approaches, such as PYM50028, to
prevent and treat this devastating condition.

Today's agreement follows Phytopharm's announcement on May 1st 2003, that the
Company had signed a licensing agreement with Yamanouchi Pharmaceutical Co.,
Ltd., a leading Japanese pharmaceutical company, for the development and
commercialisation of PYM50028 in Japan and other Asian territories.

Professor David Smith, Professor of Pharmacology and Project Leader, OPTIMA,
said: 'PYM50028 displays an important array of pharmacological properties that
are relevant to the treatment of Alzheimer's disease.  Neurodegeneration plays a
central role in the pathology of dementia and agents with the ability to reverse
this process represent a potentially significant therapeutic advance.'

Commenting on today's announcement, Richard Dixey, Chief Executive of
Phytopharm, said: 'OPTIMA is an excellent partner for the recruitment and
evaluation of PYM50028 in patients with dementia.  Their proven clinical
investigative capabilities and expertise in the field provides Phytopharm with
an important advantage in ensuring the rapid clinical development of this
innovative therapeutic agent.'


                                     -ENDS-

Enquiries:

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

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

OPTIMA
Professor David Smith                             Tel:  [phone]


NOTES TO EDITORS

The Oxford Project to Investigate Memory and Ageing (OPTIMA)

OPTIMA is one of the UK's leading centres for the study of dementia and has
pioneered the use of neuroimaging as a diagnostic aid and for following the
progression of Alzheimer's disease. Its cohort of more than 800 subjects is
unique in the world for the detailed longitudinal data covering clinical
assessment, neuropsychology, neuroimaging, biochemistry and genetics.

More information concerning OPTIMA can be found on its web site at 
http://www.pharm.ox.ac.uk/optima.htm


Phytopharm plc

Phytopharm is the leading company in the development of Botanical
pharmaceuticals.  These plant-based medicines, manufactured to pharmaceutical
standards, can be clinically evaluated 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
disease, neurodegeneration, inflammation and dermatology.

PYM50028 arose from research into the activity of an Asian medicinal plant.  In
pre-clinical studies, this synthetic chemical is neuroprotective, reverses the
decrease of neuronal growth factors and reverses 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 neurite outgrowth and branching.  PYM50028 thereby offers the
potential of disease modification in poorly treated but prevalent
neurodegenerative conditions such as Alzheimer's and Parkinson's disease.  The
neurodegeneration 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 mode of action.

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

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


                      This information is provided by RNS
            The company news service from the London Stock Exchange