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Plant Impact plc: Significant Exclusive Licence Agreement for BugOil(R)

June 1, 2009

PRESTON, England, June 1 /PRNewswire-FirstCall/ — Plant Impact (AIM:
PIM), a developer of technologies that improve crop productivity, is pleased
to announce that on May 29 2009 it entered into a significant exclusive
licence agreement with Arysta LifeScience Corporation (“Arysta”) for the sale
of Plant Impact’s flagship BugOil(R) product (“Licence Agreement”).

    Highlights:

    - Exclusive worldwide license in relation to the BugOil(R) product
      granted to Arysta, a global top 10 agrochemical company by revenue

    - The licence grants Arysta the exclusive right to manufacture, market,
      sell and distribute BugOil

    - Potentially a multi-million pound agreement including milestone
      payments and royalties

Background

BugOil(R), a patented technology developed by Plant Impact over 6 years,
is a patented plant insecticide that uses a synergistic blend of plant
essential oils to act against sap-feeding pests including mites, whitefly,
thrips and aphids. BugOil(R) has proven high levels of efficacy and safety to
the environment, users and customers when compared to currently available
competitive products whose sales currently exceed US$800 million.

Plant Impact announced in December 2008 that the product registration
dossier for European Union regulatory approval for BugOil(R) that was
submitted in August 2008 had been passed as complete by the Pesticides Safety
Directorate in the UK. The Company expects to receive approval towards the
beginning of 2010, leading to first sales during the same year. The Company
is working in conjunction with Arysta for registration in the USA, Latin
America
, Europe, Africa and the Middle and Far East, where the Company
believes BugOil(R) will make a significant difference to quality of life and
living standards.

On 19 February 2009 Plant Impact announced that following the extensive
trials conducted by Plant Impact on the BugOil(R) product to test efficacy
and enable assessment of market potential, it had entered into a non-binding
letter of intent in relation to the licensing of BugOil(R) and that it
expected a definitive licence agreement to be entered into during the first
half of 2009.

Details of the Licence Agreement

The Licence Agreement grants to Arysta an exclusive worldwide license,
with the right to sublicence, to manufacture and sell BugOil(R) in all fields
except the home and garden and animal health markets. Under the Licence
Agreement Arysta is also granted certain rights in relation to any further
development of BugOil(R) by Plant Impact. Plant Impact reserves the right to
engage in further research and development regarding BugOil(R). Plant Impact
remains responsible for costs in relation to the maintenance of the BugOil(R)
patents and obtaining the necessary regulatory approvals to sell BugOil(R) in
the United Kingdom, the European Union and the United States. It is Arysta’s
responsibility to register the product at state level in the United States
and country level in the rest of the world.

Milestone Payments

The Licence Agreement provides that there shall be paid to Plant Impact
milestone payments of increasing sums on:

    - the signing of the Licence Agreement;

    - achieving four regulatory milestones; and

    - achieving three sales target milestones.

Royalty Payments

The Licence Agreement provides that Plant Impact shall be paid a royalty
on the sales of the BugOil(R) product by Arysta. The level of this royalty
payment is in line with the usual rate of royalty payable in the agrochemical
industry.

Term

The Licence Agreement has a term of 20 years.

Plant Impact and Arysta are also in discussions regarding access to
distribution and potential licensing rights for certain plant nutrient
technologies and products owned by Plant Impact. Further announcements on
these discussions are anticipated later in 2009.

Chris Richards, Arysta CEO, said: “Arysta LifeScience is delighted to
have secured rights to BugOil(R), which will provide a valuable addition to
our portfolio of products for our customers, particularly in fruit and
vegetable crops. Arysta’s global capability in the development and marketing
of novel products for growers, is an excellent complement to Plant Impact’s
outstanding capability in invention; we look forward to continued
co-operation with Plant Impact and their plant nutrition and other products.”

Peter Blezard, CEO of Plant Impact said: “We are delighted to have signed
our first full licence agreement with Arysta. This agreement is the
culmination of many years’ research, development and hard work. We believe it
is a company changing deal, which will help revolutionise the agrochemical
industry, bringing significantly improved crop yields and greater awareness
of the planet’s environmental issues. With its global network of operations
in 125 countries and solid commitment to the BugOil(R) product we are
confident of Arysta achieving significant annual sales of BugOil(R) during
the term of this agreement.”

Headquartered in Tokyo, Japan, Arysta LifeScience is the world’s largest
privately held crop protection and life science company with 2008 revenues of
JPY134 billion (US$1.3 billion). An entrepreneurial provider of crop
protection and life science products in more than 125 countries worldwide,
Arysta LifeScience specialises in marketing and distribution of respected
crop protection brands and life science products in harmony with the needs of
global partners. More information on the company is available at:
http://www.arystalifescience.com.

About Plant Impact plc

Plant Impact addresses the increasing global demand for effective,
sustainable and ecologically-sound products to combat environmental plant
stress and improve crop productivity. Common environmental plant stresses
include drought, salinity, nutrient deficiencies, pests and disease. Plant
Impact’s advances produce practical results that reduce inputs and benefit
the whole of the agricultural value chain, providing solutions for growers,
food manufacturers and consumers.

A broad product portfolio has been developed using these innovative and
proprietary technologies, the most advanced of which are already being
marketed and sold through established agricultural distribution networks.
Products for the home and garden market are also distributed direct to
consumers through reputable high street stores.

About BugOil(R)

BugOil(R) is a benign insect and mite control agent derived from
essential plant oil technology that offers highly effective control in a
non-toxic, environmentally friendly method. The pests targeted by BugOil(R)
are mites, whitefly, thrips and aphids; these pests are some of the most
damaging and most difficult to control as they reproduce quickly in mass
numbers and can build resistance to conventional pest control agents.

Independent field trials conducted on BugOil(R) have demonstrated that
the product has pest control abilities at least equal to, if not better, than
those of current industry-standard insecticides. BugOil(R) also provides
broad-spectrum pest coverage, particularly for ornamentals such as cut
flowers. All field trials were conducted to regulatory standard by
independent third parties on high-value crops such as ornamentals, fruit and
vegetables. To date, successful field trials have been conducted on BugOil in
the USA, UK, Europe and Africa.

    BugOil(R) technology:

    - high level of efficacy equivalent to most current synthetic standards;

    - based totally on natural plant extracts;

    - safe for many non-target organisms including mammals, fish, birds, and
      most

    - beneficial insects (bees, earthworms, lacewings, ladybirds); and

    - non-toxic and environmentally friendly.

    For further information, please contact:
    Mike Pantelli,
    Tel: +44-1772-645-164
    Plant Impact

    Peter Blezard, CEO,
    Plant Impact

    Anna Dunphy / Tristan Jervis
    Tel: +44-207-861-3838
    Financial PR/IR
    De Facto Communications

    Emily Morgan / Nick Harriss
    Tel: +44-207-489-4500
    Blomfield Corporate Finance Limited (Nomad)

    Nicholas Malins-Smith
    Tel: +44-207-382-4467
    Religare Hichens, Harrison (Broker)
    Arysta LifeScience Corporation

SOURCE Plant Impact plc


Source: newswire



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