Taste Masking

News

24 May 2010

Validation of technology with launch of supplement chews and
signing of manufacturing agreement

Oxford Nutrascience announces the launch of two new chewy confectionery products that use its proprietary fortified chewy confectionery system ("the technology"). One chew is a cranberry supplement and the other is a children's confectionery chew containing prebiotic fibre, omega-3 and vitamins A,C,D and E.

The launch of the chews provides further validation of the Company's proprietary technology which uses soluble fibres to enable functional ingredients such as vitamins and minerals to be added without compromising taste, texture and stability. Importantly the technology also deliversconfectionery that is high in fibre yet reduced in sugar and fat.

The Company has pending UK and European patent applications for the technology and these two new products are the first applications of the Company's technology to be brought to market.

The two products will be available to consumers during the second half of 2010 as part of the Group's own product range and are being made available to other over-the-counter consumer healthcare companies seeking to use Oxford Nutrascience's confectionery technology.

The launch of the chews follows the recent signing of an exclusive manufacturing agreement with Lamy Lutti, one of the largest confectionery manufacturer's in Europe which produces 53,000 tonnes of confectionary products a year and has a turnover of approximately €130 million. The Company formally signed the agreement with Lamy Lutti on 21 May 2010.

In addition to the two new chews announced today, Lamy Lutti is working with Oxford Nutrascience to develop more exciting new chews using the Company's unique proprietary technology. The partnership with Lamy Lutti provides a scaleable production facility and also allows the Company to expand its chew development capability. Further chews are due to be brought to market during 2011.

Nigel Theobald, Chief Executive, Oxford Nutrascience Group Plc commented:

"The launch of these two new chews is part of Oxford Nutrascience's stated strategy of exploiting our nutraceutical and taste-masking technology by increasing our range of vitamin chews. At last week's Vitafoods trade show in Switzerland we had exciting levels of enquiries in our chews from both distributors and international over-the-counter consumer healthcare companies who are interested in working with our technology.

"Lamy Lutti have proven that they are able to manufacture our chews on a mass scale without any detrimental affect on the nutritional benefits, taste or chewing sensation of the final product. Our ability to attract a company of Lamy Lutti's calibre reflects the integrity of our technology and the opportunity for our chews."

For further information:

www.oxfordnutrascience.com

About Oxford Nutrascience Group Plc

• Oxford Nutrascience is a UK consumer healthcare company that develops chewy confectionery, chewable tablets and liquid suspensions to allow medicines and vitamin supplements to be taken in a more pleasant and convenient way.
• Oxford Nutrascience has developed technology for the use of soluble fibres in medicine delivery systems that disperse and solubilise medicines, improve taste and mouth feel, simplify processing and eliminate additives, incorporate prebiotic health benefits.
• Chews: Oxford Nutrascience currently produces Ellactiva®, a calcium chewy supplement sold in the UK and in the Middle East, and plans to launch new chews to complement this existing product.
• Chewable tablets and liquid suspensions: The target market for Oxford Nutrasciences' Chewitabs™ and liquid suspension delivery systems are over-the-counter ("OTC") pain relieving drugs, indigestion preparations and cough and cold medicines.