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BioProgress placing and open offer

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BioProgress plc


("BioProgress" or the "Company")


Placing and Open Offer of 14,559,444 new Ordinary Shares at 50p per share


BioProgress plc, a provider of innovative delivery mechanisms for the pharmaceutical oral dosage markets, announces today that the Company proposes to raise approximately £6.6 million (net of expenses) by way of a Placing and Open Offer of 14,559,444 new Ordinary Shares. The Placing and Open Offer is underwritten by Collins Stewart.


Highlights


· raising £7.3 million before expenses

· the proceeds will be used to create a cGMP film production capability in March, Cambridgeshire

· the Open Offer, qualifying ordinary shareholders may subscribe for Offer Shares at 50p per share pro rata to their shareholdings on the basis of 1 Offer Share for every 6 ordinary shares held

· underwritten by Collins Stewart.





Commenting on the Placing and Open Offer, Graham Hind, Chief Executive of BioProgress plc, said:



"Since our flotation on AIM earlier this year the business has progressed well and we continue to focus on the development of our technologies and their delivery of these technologies into the market place. A requirement of our proposed alliance with FMC is that a pharmaceutical standard (cGMP) production source of the BioProgress proprietary films is established. The establishment of a BioProgress film facility would offer a number of advantages in addition to meeting the our obligations pursuant tounder the proposed FMC strategic alliance.


"It also means that we will have successfully dealt with our two main strategic requirements, namely to appoint a high quality global pharmaceutical machine manufacturer and to provide sources of pharmaceutical standard film on both sides of the Atlantic. As a result, we view the outlook for the current and forthcoming financial years with confidence."


For further information:

BioProgress plc

Graham Hind, Chief Executive Tel: +44 (0) 1354 655 674

grahamhind@bioprogress.com www.bioprogress.com


Collins Stewart

Paul Davies Tel: +44 (0) 20 7523 8309

pdavies@collins-stewart.com www.collins-stewart.com


Media enquiries:

Bankside

Henry Harrison-Topham / Heather Salmond Tel: +44 (0) 20 7444 4140

heather.salmond@bankside.com www.bankside.com





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