Company Update

The Directors are pleased to announce the successful conclusion of the SLN Offer. The Company has today executed the documentation necessary to enable the Company to issue up to £5,950,000 of loan notes. These loan notes are to be issued to both shareholders who have subscribed for loan notes and to creditors of the Company who have agreed to convert the Company’s outstanding debt to them into loan notes. The Directors and staff wish to record their gratitude to shareholders and creditors for the support given to the Company’s plan.

Bridge Global Opportunities Fund (a company in which Mr Cressman is a shareholder) has agreed to convert the amount of £1,532,500 which is owed by the Company to Bridge Global Opportunities Fund into £1,532,500 loan notes.

Further to information included in the circulars sent to shareholders on 25 June 2009 and 4 August 2009, the Company is pleased to announce that, notwithstanding the fact that less than £6,000,000 has been raised from the SLN Offer, Mr Muncaster has agreed to waive his claim of £1,456,516.40 against the Company in return for the issue to him of £250,000 loan notes.

The loan notes which are to be issued to Mr Muncaster and to Bridge Global Opportunities Fund form part of the aggregate number of loan notes referred to above.

The finalisation of the administration of the SLN Offer is still being concluded and therefore the actual number of loan notes issued pursuant to the SLN Offer may be less than £5,950,000 however it will not exceed this number. Shareholders will be notified of the final number of loan notes actually issued in due course. Successful applicants under the SLN Offer should receive their certificate representing their loan notes within the next 15 days.

The Directors are also pleased to announce that Keith Hemming, its International Sales & Marketing Director, has agreed to join the Board of the Company with immediate effect. Keith’s appointment will further strengthen the board and reflects the Company’s increased focus on the successful marketing of its products.

The Company also announces that two of its loss making and non-core business subsidiaries, Dexo Biopharm Limited and Melbrosin UK Limited, have instructed McTear, Williams & Wood (insolvency practitioners) to assist the Directors in convening statutory meetings of members and creditors in accordance with the Insolvency Act 1986, to place the companies in liquidation.