Re: Agreement

Phytopharm PLC
09 January 2006



  PHYTOPHARM PLC AND SCHERING-PLOUGH ANIMAL HEALTH ENTER INTO A MARKETING AND 
            DISTRIBUTION AGREEMENT FOR PHYTOPICA(TM)

GODMANCHESTER, Cambridgeshire, U.K. (January 9th 2006) - Phytopharm plc (LSE:
PYM; NASDAQBB: PHYOF; PHYOY) ('Phytopharm') announces today that it has entered
into an exclusive global marketing and distribution agreement with Schering-
Plough Animal Health (Schering-Plough) for Phytopica(TM), a plant-based product
clinically proven to promote healthy skin and coat in dogs.  Phytopica(TM) is a
natural product combining the beneficial effects of 3 plants and provides a
novel 3 in 1 approach to help maintain a normal healthy immune system, support
normal white cell function and provide anti-oxidant benefits.  Maintenance of a
healthy skin and coat condition are of major importance to canine general health
and quality of life.  Under the terms of the agreement, Phytopharm will be
responsible for the manufacture and sale of Phytopica(TM) to Schering-Plough.
Schering-Plough will be responsible for the global sales, marketing and
distribution of Phytopica(TM).

Dr Richard Dixey, Chief Executive Officer of Phytopharm, said: 'We are delighted
to enter this agreement with one of the world's leading animal health companies.
Phytopica(TM) has already been introduced to veterinary dermatologists, and with
Schering-Plough's global presence we look forward to maximizing the potential
for the product.'

                                     -ENDS-


Company Contact:                        U.K. Investor relations contact
Phytopharm, plc                         Financial Dynamics
Richard Dixey                           David Yates/Ben Atwell
[phone]                         [phone]
www.phytopharm.com


PHYTOPHARM PLC
Phytopharm is focused on the research and development of novel pharmaceutical
and functional food products based on clinical and pre-clinical data generated
from medicinal plant extracts.  The Company has seven development programmes in
four disease areas: neurodegeneration, obesity and metabolic disease,
dermatology and inflammation and has a portfolio of two marketed veterinary
products.

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

This press release may contain forward-looking statements within the meaning of
Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S.
Securities Exchange Act of 1934 with respect to the financial condition, results
and business achievements/performance of Phytopharm and certain of the plans and
objectives of its management.  These statements are statements that are not
historical facts.  Words such as 'should', 'expects', 'anticipates', 
'estimates', 'believes' or similar expressions, as they relate to Phytopharm, 
are intended to identify forward-looking statements.  By their nature,  forward-
looking statements involve risk and uncertainty because they reflect
Phytopharm's current expectations and assumptions as to future events and
circumstances that may not prove accurate.  There is no guarantee that the
expected events, trends or results will actually occur.  Any changes in such
assumptions or expectations could cause actual results to differ materially from
current expectations.


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