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Friday 30 May, 2008

AquaSource

Final Results

AquaSource Algae Group
                  

AquaSource Algae Group plc - Final Results

                           AQUASOURCE ALGAE GROUP PLC
          PRELIMINARY ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2007

CHAIRMAN'S STATEMENT

I am delighted to present my first statement as Chairman, having been appointed
in January following David Gaiman's decision to retire after five years service,
during which time he guided the Group through some difficult times. The other
Board members and I would like to thank David for his wisdom, guidance and
commitment through that challenging period. We do however continue to benefit
from his considerable experience as he remains a non-executive Director.

As I stated upon my appointment, I aim to build on the legacy left by David and
am therefore pleased to report a third consecutive year of improving results. In
2007 the Group achieved an operating profit before amortisation of goodwill and
interest of EUR 127,361 compared to an equivalent profit of EUR 93,763 in the
previous year. The increase in this year's result has been achieved on sales of
EUR 3.03m, (2007 - EUR 2.97m) with a small increase on the gross profit margin.
The anticipated continuing strength of the Euro against Sterling during the
later part of this calendar year is expected to benefit the Company in the 2008
Financial Year results.

Throughout 2007 considerable attention was given to improving trading in
Finland, but the conditions remain difficult and as a consequence the Board
believes that it is now prudent to write off the remaining value of goodwill of
EUR 795,000 associated to the acquisition of the Finnish business.

During the year new products and marketing initiatives were launched in Bulgaria
with great success, and were therefore introduced into other markets. Most of
these markets are also experiencing growth in the distributor base and thus
overall sales. We remain cautious for UK market, particularly as we are
uncertain of the impacts of the 'credit crunch'.

A considerable amount of hard work has been performed over the past twelve
months by the executive team, country managers, staff and distributors. The
Board and I would like to express our personal thanks for their continuing
commitment and dedication.

Ratan Daryani
Chairman
29th May 2008

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*T
                       AQUASOURCE ALGAE GROUP PLC
              AUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
                   FOR THE YEAR ENDED 31 DECEMBER 2007

                                  Notes         31.12.07           31.12.06
                                            EUR        EUR       EUR      EUR
TURNOVER
Continuing operations                             3,039,462         2,970,316

Cost of sales                                       550,302           556,128

GROSS PROFIT                                      2,489,160         2,414,188

ADMINISTRATIVE EXPENSES:
Amortisation of goodwill                 404,016             404,018
Exceptional / non-recurring items  2     390,984           1,225,078
Other                                  2,379,386           2,324,925
                                                  3,174,386         3,954,021

Other operating income                               17,587             4,502

OPERATING (LOSS)/ PROFIT:
Continuing operations-before exceptional
 and non-recurring items               (276,655)           (310,253)
Continuing operations-exceptional and
 non-recurring items                   (390,984)         (1,225,078)
                                                  (667,639)       (1,535,331)
Interest receivable and similar income                6,044             7,282
Interest payable and similar charges                (8,371)           (5,806)

(LOSS)/PROFIT ON ORDINARY ACTIVITIES
 BEFORE TAXATION                                  (669,966)       (1,533,855)
Tax on profit from ordinary
 activities                         3              (95,583)          (57,918)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR
 AFTER TAXATION                                   (765,549)       (1,591,773)

(LOSS) PER SHARE (EURCENT)          5                (1.31)            (2.75)

(LOSS)/PROFIT PER SHARE PRE EXCEPTIONAL
 AND NON-RECURRING ITEMS (EURCENT)  5                (0.64)            (0.60)
*T

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                        AQUASOURCE ALGAE GROUP PLC
                    AUDITED CONSOLIDATED BALANCE SHEET
                             31 DECEMBER 2007

                                  Notes         31.12.07           31.12.06
                                            EUR        EUR       EUR      EUR
FIXED ASSETS:
Intangible assets                                    8,288            806,633
Tangible assets                                    368,410            402,994
Investments                                         67,816             82,629
                                                 ---------          ---------
                                                   444,514          1,292,256

CURRENT ASSETS:
Stocks                                  290,635              213,738
Debtors                                 165,434              185,946
Cash at bank                            448,297              313,780
                                      ---------            ---------
                                        904,366              713,464
CREDITORS: Amounts falling
 due within one year                    682,060              549,421

NET CURRENT ASSETS:                                222,306            164,043

TOTAL ASSETS LESS CURRENT
 LIABILITIES:                                      666,820          1,456,299

CREDITORS: Amounts falling
 due after one year                                181,023            206,292

                                             -------------      -------------
                                             EUR   485,797      EUR 1,250,007
                                             =============      =============

CAPITAL AND RESERVES:
Called up share capital                            146,135            146,135
Share premium account                            4,403,766          4,403,766
Other reserves                                   (203,825)          (203,825)
Share based payment reserve                         38,061             36,722
Profit and loss account                        (3,898,340)        (3,132,791)
                                             -------------      -------------
SHAREHOLDERS' FUNDS:                         EUR   485,797      EUR 1,250,007
                                             =============      =============
*T

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*T

                        AQUASOURCE ALGAE GROUP PLC
                   AUDITED CONSOLIDATED CASH FLOW STATEMENT
                      FOR THE YEAR ENDED 31 DECEMBER 2007

                                  Notes         31.12.07           31.12.06
                                            EUR        EUR       EUR      EUR
NET CASH INFLOW FROM OPERATING
 ACTIVITIES                         6               144,239           368,567

RETURNS ON INVESTMENTS AND
 SERVICING OF FINANCE
  Interest received                        6,044                 7,282
  Interest paid                           (8,371)               (5,806)
Net cash inflow/(outflow) from returns
 on investments and servicing  of finance           (2,327)             1,476

CAPITAL EXPENDITURE AND FINANCIAL
 INVESTMENT
  Purchase of intangible fixed assets                 (722)                 -
  Purchase of tangible fixed assets                 (6,673)         (337,442)
  Purchase of investments                                 -          (62,376)
                                                  ---------        ----------
(DECREASE)/INCREASE IN CASH         7               134,517          (29,775)
*T

AQUASOURCE ALGAE GROUP PLC NOTES TO THE PRELIMINARY ANNOUNCEMENT

1 BASIS OF PREPARATION

The preliminary announcement has been prepared in accordance with applicable
accounting standards under the historical cost convention, and in accordance
with the accounting policies set out in the annual report and financial
statements for the year ended 31 December 2007.

The preliminary announcement has been approved by the board of directors on 29
May 2008 and has been agreed by the auditors. The preliminary announcement as
set out does not constitute statutory accounts for the year ended 31 December
2007. The audit report for the year ended 31 December 2007 will be unqualified.

2 EXCEPTIONAL/NON-RECURRING ITEMS

The exceptional item relates to the impairment of the value of the goodwill
arising on acquisition of the Finnish subsidiary.

In the opinion of the directors these costs were particular to the accounting
period in question and have therefore been shown separately to distinguish them
from recurring expenditure.

3 TAXATION

ANALYSIS OF THE TAX CHARGE The tax charge on the profit on ordinary activities
of the year was as follows:

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*T
                                        31.12.07          31.12.06
                                             EUR               EUR
Tax on profit of ordinary activities      95,583            57,918
*T

4 DIVIDENDS

No dividends have been distributed to shareholders during the period.

5 LOSS PER SHARE

The calculation of the basic loss per share is based on the loss attributable to
ordinary shareholders of EUR 765,549 (2006: EUR 1,591,773) divided by the
weighted average number of shares in issue during the period of 58,453,991
(2006: 57,664,707). The calculation of the basic profit per share pre
exceptional/non-recurring items is based on the loss before exceptional/
non-recurring items of EUR 374,565 (2006: EUR 366,695) divided by the weighted
average number of shares in issue during the period of 58,453,991 (2006:
57,664,707).

There is no dilutive effect of share options on the basic profit per share.

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6    NET CASH INFLOW FROM OPERATING ACTIVITIES

                                            31.12.07          31.12.06
                                                 EUR               EUR
Operating loss                              (667,639)       (1,535,331)
Depreciation and amortisation charges         464,153           507,214
Amortisation charges - impairment             390,984         1,225,078
Decrease in stock                            (76,897)            37,248
Decrease in debtors                            20,512            68,310
Increase/(decrease)in creditors               107,370            98,933
Translation differences                         1,339            24,402
Taxation paid                                (95,583)          (57,287)
                                            ---------         ---------
NET CASH INFLOW FROM OPERATING
ACTIVITIES                                    144,239           368,567
*T

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7    RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

                                            31.12.07          31.12.06
                                                 EUR               EUR
(Decrease)/increase in the year              134,517          (29,775)
Funds at beginning of year                   313,780           343,555
                                             -------       -----------
FUNDS AT END OF YEAR                         448,297           313,780
*T

The directors of AquaSource Algae Group plc accept responsibility for this
announcement.

ENDS

Enquiries:

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Sian Lewis                      AquaSource             +385 911 324270
Oliver Spurling                 AquaSource                07769 647617
Stephen Foale                   Fletcher Foale            07769 937708
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