Trading Statement

Plant Health Care PLC 21 January 2008 For release: 21 January 2008 PLANT HEALTH CARE PLC ('Plant Health Care' or 'the Company') Trading Update Plant Health Care (AIM: PHC.L), a leading provider of natural products for plants and soil, provides a post year end update for 2007, ahead of the announcement of its Preliminary Results in late March/early April 2008. The Company has also announced today that following the 2007 Myconate(R) trial results, Bayer CropScience has confirmed that it will move forward with the second year of Myconate(R) testing. Bayer CropScience will be making a milestone payment to Plant Health Care for the continuation of the cooperation into the second year. In addition, the Company has announced today that following very encouraging results of its 2007 Myconate(R) testing programme in cereal crops it is moving forward, in 2008, with further testing and commercialisation activities for the application of Myconate(R) on cereal grain crops with several large, international agrichemical and/or seed companies. Plant Health Care's turnover for the year ended 31 December 2007 is expected to be $18.4 million, up 35% on the prior year. Following significant investment in market development of Myconate(R) and Harpin, the operating loss for the period is expected to be approximately $4.4 million. In addition, it is expected that there will be non-operating charges of approximately $0.8 million of which approximately $0.4 million relates to amortisation of the value of executive share incentives awarded and is a non-cash item. As a result, the loss before tax for the period is expected to be approximately $5.3 million. At 31 December 2007, the Company had cash and cash equivalents of approximately $10.8 million. In terms of turnover, 5% relates to licensing and milestone payments from partners. The marginally higher than expected operating loss in 2007 is largely due to an important Harpin deal being delayed. The directors now anticipate that this deal, with one of the world's leading agrichemical companies, will be completed in the first half of 2008. Commenting, John Brady, Chief Executive of Plant Health Care said: 'In January 2007 we signed our first development and commercialisation agreement for Myconate(R) with Bayer CropScience and in December we secured our first agreement for our EPA-registered Harpin technology with Monsanto. These two agreements represent very significant progress for our Company. 'I am very pleased with the advance made during 2007 as our Company continues to move forward in its efforts of establishing the necessary channels to extract considerable value from our natural technologies.' -Ends- For further information please contact: Plant Heath Care plc Tavistock Evolution Securities Limited Communications John Brady, Chief Executive Jeremy Carey/Matt Tim Worlledge/ Tim Redfern Ridsdale Tel: 020 7920 3150 Tel: 020 7920 3150 Tel: 020 7071 4300 (21 - 25 January) Tel: 001 603 525 3702 (Thereafter) This information is provided by RNS The company news service from the London Stock Exchange
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