Preliminary Results

Oxford Catalysts Group PLC
26 March 2007

26th March 2007





                           OXFORD CATALYSTS GROUP PLC

              ('Oxford Catalysts' or 'the Company' or 'the Group')



           Preliminary Results for the Year Ended 31st December 2006



Oxford Catalysts Group PLC, the leading catalyst innovator for clean fuels,
announces today its maiden set of preliminary results since its successful
flotation on the AIM market in April 2006.


Highlights


•       Listed on AIM on 26th April 2006; raised £14.0 million net of expenses

•       Close to 4 fold increase in non-disclosure and/or material transfer
        agreements since IPO

•       Testing of Fischer-Tropsch ('FT') catalyst with three major oil
        companies ('oil Majors')

•       Award of a £118,000 joint grant from the Carbon Trust in partnership
        with leading UK-based Solid Oxide Fuel Cell company

•       Prototype development program with Proventec Plc coming to successful
        fruition

•       Continuing to meet technical targets; breakthrough in FT performance

•       Patent filings proceeding as expected

•       Significant increase in resources and capabilities: completion of
        state-of-the-art laboratory, along with substantial increase in staff 
        since IPO

•       Appointment of Jeremy Scudamore as Non-executive Director

•       Tight financial control; £13.5m in cash and short term deposits


Dr Pierre Jungels, CBE, Chairman of Oxford Catalysts, said:


'We continue to make good progress delivering on the milestones we set ourselves
at the time of the IPO, whilst maintaining our focus on commercialisation,
technology development and the protection and enhancement of our intellectual
property.


'We expect that the high level of interest and engagement will continue, and
that the foundations and key relationships we have put in place will grow
towards successful long-term commercialisation partnerships. The Board looks
forward to another successful year of achievement in 2007.'



For further information, please contact:


Roy Lipski, CEO, Oxford Catalysts                            Tel:  [phone]
Megan MacIntyre, KBC Peel Hunt                               Tel:  [phone]
Jonathon Brill, Billy Clegg, Financial Dynamics              Tel:  [phone]





Notes to Editors


Oxford Catalysts designs and develops specialty catalysts for the generation of
clean fuels from both conventional fossil fuels and certain renewable sources.
The Company has two key platform technologies resulting from almost 20 years of
research at the University of Oxford's prestigious Wolfson Catalysis Centre. The
first platform is for a novel class of catalysts incorporating metal carbides,
which can match or exceed the benefits of traditional precious metal catalysts,
at a lower cost, for several key processes used in the petroleum and
petrochemical industries. The second relates to a series of unique chemical
reactions which can be used to generate either hydrogen gas or steam,
instantaneously, starting from room temperature, using a cheap and safe liquid
fuel alongside the Company's patented catalysts. Such unprecedented instant
hydrogen or steam has exciting potential applications in a broad range of
markets, from portable power to cleaning and decontamination.


In April 2006 Oxford Catalyts Group PLC listed on London's AIM market (coding
symbol OCG). Oxford Catalysts operates a wholly owned subsidiary in the UK
(Oxford Catalysts Limited ('OCL')).





CHAIRMAN'S STATEMENT

Dr Pierre Jungels, CBE


It is with great pleasure that I make my first full report as Chairman of Oxford
Catalysts Group PLC. The Company has made good progress in 2006, and since its
admission to the London Stock Exchange plc's AIM market in April 2006, the
management team has been steadily delivering against our plans whilst
successfully laying important commercial and technical foundations for the
future.


Oxford Catalysts' business model is to license its technology for commercial
exploitation. The Company aims to enter into a relatively small number of key
development partnerships with leading manufacturers, producers or suppliers in
three main application areas: petroleum and petrochemical catalysts; hydrogen
production for fuel cells and; instant steam production for a variety of
markets.


I am pleased to report that we continue to experience impressive growth in
interest from, and engagement with, potential partners and customers. To date,
we have entered into some 40 non-disclosure and/or material transfer agreements,
and we are in active discussions with numerous companies over testing, and the
potential co-development and licensing of our technology. These include: a
significant number of oil Majors; some of the world's largest national oil
companies, refiners and oil services companies; many of the world's leading
catalyst companies; process gasses multinationals; fuel cell businesses; major
electronics manufacturers, and defence contractors.


The significant growth in our resources and capabilities has continued, with the
completion of our state-of-the-art laboratory and the ongoing recruitment of
high quality personnel. We now have 17 employees, including 11 scientists and
engineers, and a business development team. I would like to take this
opportunity to thank them all for their hard work and dedication, and to
congratulate them on the impressive achievements they have helped the Company
attain during the course of 2006.


Recently, we welcomed Jeremy Scudamore to our Board as a Non-executive Director.
The Company is very fortunate to be able to benefit from Jeremy's extensive
business and industry experience, including his expertise in licensing IP;
(Jeremy was Chief Executive and later Chairman of Avecia Group, and is currently
a Non-executive Director of ARM Holdings PLC). Separately, Dr Andy Naylor will
be stepping down from the Board at the next AGM on 14th May 2007. I would like
to thank him for his valuable contribution during his tenure on the Board and
wish him well for the future.


Outlook

We continue to make good progress delivering on the milestones we set ourselves
at the time of the IPO, whilst maintaining our focus on commercialisation,
technology development, and the protection and enhancement of our intellectual
property.


We expect that the high level of interest and engagement will continue, and that
the foundations and key relationships we have put in place will grow towards
successful long-term commercialisation partnerships. The Board looks forward to
another successful year of achievement in 2007.






CHIEF EXECUTIVES REPORT

Roy Lipski


Introduction

The Company has continued to grow since its admission to AIM on 26th April 2006.
With our team of scientists, engineers and business development professionals
progressing rapidly towards its full complement, in our new offices and
laboratory, we are confident that we have firm foundations from which our
commercial relationships will continue to grow and prosper.


Market Dynamics

Cleaner, more sustainable energy and fuels are currently receiving increasing
amounts of attention and support from governments, industry, and the population
at large. This ongoing shift in attitudes has translated itself into ever more
favourable business climates in the Company's key markets.


For example, there is increasing pressure on refiners worldwide to meet
low-sulphur requirements, which is leading to a boost in the
hydro-desulphurisation ('HDS') catalyst market. This is especially apparent
following the US low-sulphur diesel legislation ('ULSD') which came into effect
on 1st June 2006.


Meanwhile, consumer electronics manufacturers are ever more focused on portable
power solutions - especially small fuel cells - that will break out of the
confines set by current battery technology, in an environmentally friendly way.


There has also been a steady increase in interest in recovery and use of biogas
and other waste methane sources to produce useful products, such as synthetic
fuels through processes incorporating Fischer-Tropsch synthesis. Finally, there
are several current and new applications ideally suited to our instant steam
technology, such as steam cleaning that is now receiving recognition for its
health and environmental benefits.


Commercial Progress

We are in active discussions with many of the key industry players in our core
markets, including most of the major oil and catalyst companies. This
underscores the excellent progress we have made in business development since
our IPO. Management is also encouraged by the volume of enquiries now coming in
to the Company as a result of our successful endeavours to build the Oxford
Catalysts brand in the markets in which we operate.


We currently have some 40 non-disclosure and/or material transfer agreements in
place, with 10 more pending for completion in the next 1-2 months. This is up
from 25 at the time of the interim results, and 11 at the time of the IPO. The
increase in engagement with potential partners is also reflected in the rise in
requests for catalyst samples, which have now been provided to several
organisations in the petroleum, petrochemicals, biogas processing and fuel cell
industries.


For example, testing of our FT catalyst has progressed well, with two oil Majors
having requested repeat samples and one additional Major currently testing our
catalyst (all of whom are doing so at their own expense). Further terms for
testing are under negotiation with other petroleum industry players and a number
of catalyst companies.


During the second half of 2006 we announced a prototype development project with
Proventec Plc, a provider of specialist steam cleaning equipment, as well as
separately a joint grant from the Carbon Trust to develop reforming catalysts
and associated technologies with a leading UK-based Solid Oxide Fuel Cell
company. Both of these projects are making good progress, with follow-on
commercialisation negotiations set to begin with Proventec in the coming months.


Finally, we have recently completed a substantial project with a leading UK
engineering consultancy to assess feasibility, and prioritise, the multiple
possible applications of our instant steam technology. From the results of this
study, we will be concentrating on a small number of selected applications
starting in the second quarter of 2007.


Technical Developments

Our technical program is making strong progress according to plan and in line
with our expectations at the time of the IPO.


The development of a steam generator prototype design for Proventec, which meets
their requirements on pressure, temperature, flow and moisture levels is
progressing well, and we anticipate agreeing an outline design in the coming
months. This device will enable the first truly portable steam cleaning
apparatus on the market, with a view to deployment in hospitals and food
processing plants, as well as for street cleaning.


We have successfully increased the life expectancy of our steam catalyst, and
have been able to demonstrate steam generation at elevated pressures. We have
also made a significant breakthrough with our FT catalyst technology which has
led to improvements in performance, as well as increased understanding of how
the mix of reaction products can be catalytically shifted between waxes and
lighter hydrocarbons.


During 2007, we will be focused on delivering on our current joint development
projects, showcasing proof-of-concept demonstrations of several of our key
technologies, and continuing the scaling up of our petroleum/petrochemical
catalysts.


Intellectual Property

We have established strong foundations from which to continue protecting and
enhancing our intellectual property.


The first of the patents licensed exclusively from Isis Innovation Ltd (on
carbide technology) was granted in Europe during the first quarter of 2006, and
has now passed the significant nine month open period without challenge. We have
also recently received a letter of allowance in the US for this patent, and thus
expect the formal grant to follow. The second patent, also related to
carbide-based technology, was granted in South Africa and has progressed to
examination in Japan, China, and recently the USA.


The third patent, on instant hydrogen and steam technologies, is awaiting
examination in a number of key territories around the world. The fourth and
fifth patents, which concern extensions of the third patent, have been
consolidated into a single patent filing which has now progressed to the
International phase and was recently published.


We will continue to protect and enhance our IP portfolio in 2007, through the
careful management of our existing portfolio of patents, and through the
developing of new intellectual property and the filing of new patents.


People & Premises

We are now fully installed in bespoke high-specification facilities at Milton
Park, one of Europe's largest multi-use business parks and host to the highest
concentration of science and biotechnology companies in Oxfordshire. Our
laboratories are fully equipped for the development, preparation,
characterisation, and testing of catalysts and small scale devices incorporating
our catalyst technologies, whilst providing an impressive environment for client
meetings.


The Company's headcount has grown significantly since the IPO with the addition
of scientific, engineering and business development personnel. We currently
number 17, from 7 different nationalities, including 11 research scientists and
chemical engineers, and a business development team. We continue to be delighted
by the high calibre of professionals we have been able to recruit, and are
confident of having put in place the foundations of a world-class team, and of
achieving our staffing target of 25 by 4Q07. In addition, we have established
consultancy arrangements for business development across Europe and the USA with
3 well-known industry experts.


Financial Review

The Group's adjusted loss before tax (adjusted for the cost of share options
(FRS20)) for the period ended 31 December 2006 was £0.41m (2005: £0.15m - Oxford
Catalysts Limited ('OCL')).


In accordance with accounting standards, the Group is required to recognise a
fair value charge for employee share options (FRS20). This charge, however, has
no effect on the Group's net assets or cash as at 31 December 2006. The total
employee share options charge to the profit and loss account for the period is
£0.56m. The Group's loss before tax, after employee share option charges,
amounted to £0.97m (2005: £0.15m - OCL).


Group Turnover amounted to £0.06m (2005: £0.0m - OCL), which includes revenues
from the Group's first commercial development agreement with Proventec Plc. The
Group also benefited from net interest of £0.44m.


We enter the coming financial year with better cash reserves than we had
anticipated, which puts us in a good position from which to achieve our goals.
At 31 December 2006 cash and short term deposits totalled £13.53m (2005: £0.49m
- OCL). During the first few months of 2007, the Group has continued to
prudently husband cash resources against tightly managed budgets.





CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2006

                                                                       Notes             2006             2005
                                                                                            £                £
Turnover                                                                               63,712                -
Administrative expenses - operational                                               (916,160)        (147,455)
Administrative expenses - share based payments (FRS20)                              (557,745)                -
Total administrative expenses                                                     (1,473,905)        (147,455)
Loss on ordinary activities before interest receivable and similar                (1,410,193)        (147,455)
income
Interest receivable and similar income                                                438,466                -
Loss on ordinary activities before taxation                                         (971,727)        (147,455)
Tax on loss on ordinary activities                                         3                -                -
Loss for the financial year                                                         (971,727)        (147,455)
Loss per share
Basic and diluted                                                          2          (2.82)p          (0.51)p


There are no recognised gains or losses in either period other than the losses
shown above.






CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2006

                                                                       Notes             2006             2005
                                                                                            £                £
Fixed assets
Intangible assets                                                                     179,604           51,020
Tangible assets                                                                       525,458                -
                                                                                      705,062           51,020
Current assets
Debtors                                                                               255,886           51,603
Short term investments - cash held on deposit                                      13,526,874                -
Cash at bank and in hand                                                   5            2,000          485,736
                                                                                   13,784,760          537,339
Creditors: amounts falling due within one year                                      (310,343)        (110,436)
Net current assets                                                                 13,474,417          426,903
Total assets less current liabilities                                              14,179,479          477,923
Creditors: amounts falling due after more than one year                             (101,257)                -
Net assets                                                                         14,078,222          477,923
Capital and reserves
Called up share capital                                                    6          373,412          287,205
Share premium account                                                      6       13,897,132                -
Merger reserve                                                             6          369,115          338,173
Profit and loss account                                                    6        (561,437)        (147,455)
Shareholders' funds                                                                14,078,222          477,923






CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2006


                                                                       Notes             2006             2005
                                                                                            £                £
Net cash outflow from operating activities                                 4        (823,988)         (88,409)
Returns on investments and servicing of finance
Interest received                                                                     438,466                -
Capital expenditure and financial investments
Purchase of intangible fixed assets                                                  (30,657)         (51,233)
Purchase of tangible fixed assets                                                   (554,965)                -
Cash outflow before management of liquid resources and financing                    (971,144)        (139,642)
Management of liquid resources
Investments - cash held on deposit                                               (13,526,874)                -
Financing
Issue of ordinary share capital                                                       373,412              374
Share premium received on share issues (net of expenses)                           13,640,870          625,004
Cash inflow from financing                                                         14,014,282          625,378
(Decrease)/increase in cash in the year                                    5        (483,736)          485,736





NOTES TO THE PRELIMINARY RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2006


1.    PRINCIPAL ACCOUNTING POLICIES


Basis of Preparation


The financial information set out above does not constitute the company's
statutory accounts for the years ended 31 December 2006 or 2005, but is derived
from those accounts. Statutory accounts for 2006 will be delivered to the
Registrar of Companies following the company's annual general meeting. The
Auditors have reported on these financial statements - their reports are
unqualified and did not contain a statement under S237 (2) or (3) of the
Companies Act 1985.


This announcement is prepared on the basis of the accounting policies as stated
below. They have all been applied consistently throughout the year.


Basis of Accounting


The financial statements have been prepared under the historical cost convention
and in accordance with applicable United Kingdom accounting standards.


Basis of Consolidation


The consolidated accounts incorporate the financial statements of the Company
and its subsidiary. In order to enable the successful flotation of the Group, it
was necessary to undertake a restructuring of the Group. As part of the Group
reconstruction, on 12 April 2006 Oxford Catalysts Group PLC acquired, in return
for the issue of new ordinary share capital, the entire share capital of Oxford
Catalysts Limited. This acquisition has been accounted for as a merger in line
with the reporting requirements of Financial Reporting Standard ('FRS') 6 '
Acquisitions and Mergers'. Therefore the Group financial statements have been
prepared as if the Group was in existence for the whole of the current and prior
years.


Turnover


Turnover represents amounts receivable for goods and services provided in the
normal course of business, net of trade discounts, VAT and other sales related
taxes.


Intangible Assets


Licences

Licences are capitalised at the present value of the minimum licence payments.
Amortisation will commence at the earlier of when related revenue is being
earned or the minimum license payments commence, and it will be charged in equal
annual instalments over the life of the patents to which the licences relate.
Provision is made for any impairment.


Patents

Patents and trademarks are included at cost and depreciated in equal annual
instalments over a period of 20 years, which is their estimated useful economic
life. Provision is made for any impairment.


Tangible Fixed Assets


Tangible fixed assets are stated at cost or valuation, net of depreciation and
any provision for impairment. Depreciation is provided on all tangible fixed
assets at rates calculated to write off the cost or valuation, less estimated
residual value, of each asset on a straight-line basis over its expected useful
life, as follows:


Plant and machinery, 3-5 years.


Residual value is calculated on prices prevailing at the date of acquisition.



2.    LOSS PER SHARE

                                                                                     2006               2005
                                                                                        £                  £
Basic and diluted loss per share has been calculated on the loss of             (971,727)          (147,455)
The weighted average number of shares in issue was                             34,412,521         28,720,493


Under merger accounting principles set out under the reporting requirements of
Financial Reporting Standard ('FRS') 6 'Acquisitions and Mergers', the number of
shares in issue at 31 December 2005, is, for the purpose of calculating loss per
share, based on the number on shares the Oxford Catalysts Group PLC issued to
acquire Oxford Catalysts Limited on 12 April 2006.



3.    TAX ON LOSS ON ORDINARY ACTIVITIES


Current Tax


Due to the availability of losses incurred in the year, there is no charge to
corporation tax.


Deferred Tax


At 31 December 2006 the Group has a net unprovided deferred tax asset of
£366,743 (2005: £56,376) arising from trading losses from incorporation. No
provision for the net deferred tax asset has been made at 31 December 2006 on
the grounds of uncertainty over its recoverability in light of the Company's
nascent revenue streams and commitment to continued investment in research and
development.



4.    RECONCILIATION OF OPERATING LOSS TO OPERATING CASH FLOWS

                                                                                    2006                2005
                                                                                       £                   £
Operating loss                                                               (1,410,193)           (147,455)
Depreciation and amortisation                                                     32,837                 213
Increase in debtors                                                            (204,283)            (51,603)
Increase in creditors                                                            199,906             110,436
Non-cash share-based payments (FRS20)                                            557,745                   -
Net cash outflow from operating activities                                     (823,988)            (88,409)



5.    ANALYSIS AND RECONCILIATION OF NET FUNDS

                                                                                    2006                2005
                                                                                       £                   £
(Decrease)/increase in cash in the year                                        (483,736)             485,736
Net funds at 1 January                                                           485,736                   -
Net funds at 31 December                                                           2,000             485,736



6.    CHANGES IN SHARE CAPITAL AND RESERVES

                                          Called Up    Share Premium      Merger Profit & Loss           Total
                                      Share Capital                      Reserve       Account
                                                  £                £           £             £               £
At 31 December 2005 (OCL only)                  374          625,004           -     (147,455)         477,923
Arising on acquisition of OCL by            286,831        (625,004)     338,173             -               -
merger accounting
At 31 December 2005                         287,205                -     338,173     (147,455)         477,923
Share issues (by OCL prior to merger)             -                -      30,942             -          30,942
Share issues (cash)                          86,207       13,897,132           -             -      13,983,339
Loss for the financial year                       -                -           -     (971,727)       (971,727)
Employee share based payments (FRS20)             -                -           -       557,745         557,745
At 31 December 2006                         373,412       13,897,132     369,115     (561,437)      14,078,222



7.    STATUTORY INFORMATION


Copies of the 2006 Annual Report will be posted to shareholders in April 2007,
and may be obtained from the date of posting for one month free of charge from
the registered office of the Company, 115e Milton Park, Oxford, OX14 4RZ, as
well as from the Company's web site www.oxfordcatalysts.com.






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