Re Agreement

Phytopharm PLC
29 March 2005





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



                                  Phytopharm plc
        Confirmation by Yamanouchi of termination of licence for CoganeTM




GODMANCHESTER, Cambridgeshire, U.K. (March 29th, 2005) - Phytopharm plc (LSE:
PYM; NASDAQBB: PHYOF; PHYOY) ('Phytopharm') announces today that further to the
announcement of 28 February 2005, it has received confirmation from Yamanouchi
Pharmaceutical Co. Ltd ('Yamanouchi') that as a result of a portfolio review
arising out of the merger of Yamanouchi with Fujisawa Pharmaceutical Co,
Yamanouchi is to terminate the licensing agreement, covering Japan and some
other Asian countries, in connection with CoganeTM (PYM50028), Phytopharm's
candidate product for the treatment of Alzheimer's disease. In the announcement
of 28 February, Phytopharm stated that it had been informed by Yamanouchi that
it was likely to terminate this agreement. Phytopharm has accepted this decision
and the termination will take place with immediate effect.



Yamanouchi has also paid a milestone of £4.0 million (£3.6 million net, less
Japanese withholding tax) to Phytopharm following the receipt of the safety data
in relation to the first 60 patients treated with CoganeTM in the ongoing phase
II proof of principle study in patients with Alzheimer's disease and confirmed
that the data met the criteria set out in the licensing agreement. Phytopharm
has now commenced dosing on 209 patients out of the projected total of 238
patients required to complete this study, which is on target to report
preliminary results in the fourth quarter of 2005.



Dr Richard Dixey, Chief Executive of Phytopharm commented: 'Yamanouchi has paid
milestones and access fees totalling £7 million (£6.3 million net, less Japanese
withholding tax) during the course of our relationship, funds which have helped
reimburse the costs of the ongoing phase II proof of principle study for Cogane
TM. Subject to the results of this study, we will seek global multinational
partners in H1 2006.'



                                     -ENDS-



NOTES TO EDITORS


Alzheimer's disease

Alzheimer's disease is a neurodegenerative disorder that mainly affects the
elderly and is characterised by a progressive loss of learning ability and
memory. Alzheimer's disease is thought to affect 4.5 million of the US
population, and it is believed that this number will continue to grow to
approximately 16 million by 2050 (Source: Alzheimer's Association). Several
factors have been proposed to play a role in the underlying neurodegeneration,
including the excessive formation of beta-amyloid, glutamate and a decrease in
neurotrophic factors in the brain.



In pre-clinical studies, the synthetic chemical PYM50028 has been shown to be
neuroprotective against beta-amyloid and glutamate damage, 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 observed
in the young and causing beneficial neurite outgrowth and branching. In
addition, PYM50028 restores the learning and memory ability in Alzheimer's
disease models and thereby offers the potential to reverse the symptoms of
Alzheimer's disease.



The global annual market for Alzheimer's disease is estimated to be worth in
excess of $2.5 billion (source: Datamonitor); 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).



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.




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