Research Update

Phytopharm PLC 10 April 2006 Company Contact: U.K. Investor Relations Contact: Phytopharm plc Financial Dynamics Dr Richard Dixey David Yates / Ben Atwell +44 7867 782000 +44 207 831 3113 Dr Daryl Rees +44 1480 437 697 www.phytopharm.com Phytopharm successfully progresses to second stage of Joint Development Agreement for Hoodia gordonii extract with Unilever Second stage includes clinical safety studies GODMANCHESTER, Cambridgeshire, U.K. (10 April 2006) - Phytopharm plc (LSE: PYM; NASDAQBB: PHYOF; PHYOY) ('Phytopharm') announces today that it has successfully completed the first stage of the Joint Development Agreement for Hoodia gordonii extract with Unilever and will now progress to the second stage which includes clinical safety studies. Under the terms of the agreement, Phytopharm and Unilever are collaborating on a five-stage research and development programme of safety and efficacy studies with a view to bringing new weight management products to market. As part of the agreement announced in December 2004, Unilever committed to initial payments of approximately £6.5 million for the first stage and for the second stage have now committed to a further £3.5 million out of a potential total of £21 million in payments to Phytopharm. In addition Phytopharm will receive an undisclosed royalty on sales of all products containing the extract. Unilever is also managing a separate agronomy programme and supporting the international patent programme for the products. Phytopharm licensed the global patent rights for the extract of Hoodia gordonii, a plant indigenous to South Africa, for incorporation into weight loss products from the South African Council for Scientific and Industrial Research (CSIR) in 1997. Commenting on today's announcement, Richard Dixey, Chief Executive Officer of Phytopharm, said: 'We are delighted with our collaboration with one of the world's leading food companies. Our partnership with Unilever provides a fully funded programme and we look forward to generating royalty income from our partner's globally recognised brands.' Commenting on today's announcement, Kevin Povey, Project Leader at Unilever, said: 'We are satisfied with the good progress to date and look forward to advancing this product through clinical trials.' -ENDS- NOTES TO EDITORS Obesity has reached epidemic proportions globally, with more than 1 billion adults overweight - at least 300 million of them clinically obese - and is a major contributor to the global burden of chronic disease and disability (Source: World Health Organisation). 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

Companies

Ixico (IXI)
UK 100