Secured Loan Note Update and Notice of AGM

Meldex announces that it has, today, written to all Qualifying Shareholders with an update on and revisions to the Secured Loan Note (“SLN”) issue.

As announced by the Company on 24 July, the Directors intend to propose a resolution to Members at the Annual General Meeting to increase the ordinary share capital by an amount sufficient to allow the conversion of any convertible loan note offered in substitution for the SLN into ordinary shares at a conversion price of 2p per share.

Under the original terms of the SLN Offer, if subscriptions totalling in aggregate £6,000,000 have not been received by close of business on the extended closing date (11 August), then all funds held in escrow (including interest payable on these monies) will be returned to each SLN Applicant.

The Directors are now seeking the consent of each SLN Applicant to allow the Company to retain their subscription monies notwithstanding that the Minimum Subscription may not be achieved. Full details of why this consent is being sought, and the conditions under which this would or would not occur, are set out in the documentation which has been sent to Qualifying Shareholders.

A “Consent Form” has been sent to all Qualifying Shareholders as part of the updated SLN documentation.

Any SLN Applicant who has subscribed for Loan Notes or who subscribes for Loan Notes before 5.00pm on 11 August 2009 must ensure that a completed Consent Form has been received by Mills & Reeve LLP by 5.00pm on 11 August 2009 otherwise all funds held in escrow by Mills & Reeve LLP on behalf of SLN Applicants will be returned, and their application will be cancelled.

Meldex further announces that the Company’s Annual General Meeting will be held at Abington Hall Conference Centre, Granta Park, Great Abington, Cambridge CB21 6GP, United Kingdom on Friday 28 August at 10.00am.

The Company has, today, sent a full copy of the Notice of Annual General Meeting to all Shareholders on the Shareholder Register.