United Kingdom
September 14, 2009

Plant Health Care, (AIM: PHC.L), a leading provider of natural products for plants and soil, announces interim results for the six months ended 30 June 2009.

Highlights

• Large orders from Monsanto for Harpin as a seed treatment component on their 2010 North American roll-out of Roundup Ready 2 YieldTM soybeans
• £10.5 million raised before expenses (US$15.2 million) in a placing of 7 million new shares in May 2009
• Continued development of the “next generation” of Harpin proteins
• Extensive field trials for foliar Harpin applications in combination with other seed treatments
• Large-scale evaluation programmes in place for Myconate with several of the largest seed and agrichemical companies
• Market drivers continue to favour environmentally sustainable products

Commenting on the results, Chief Executive John Brady said:

“Despite the current global recession, we are confident that the dominant trends affecting agriculture and our business will accelerate in the future. Our current opportunities for partnering arrangements have never been stronger. As a result, we are very optimistic that our recent commercial success with Monsanto is only one important milestone along a future path of larger successes for our naturally derived technologies.”

INTRODUCTION

We are pleased to announce the financial results of Plant Health Care plc for the six months ended 30 June 2009 and to update our shareholders on the exciting developments in our business.

Our primary strategy is to develop and prove naturally derived IP-protected products which promote plant growth, yield and health, and exploit them commercially by partnering with the largest seed and agrichemical companies in order to enhance the efficacy of existing anf future agricultural products. The success of this strategy is best measured by the growth in demand for the company’s products as well as the quality of opportunities for future growth. By both measures, the first half of 2009 was highly successful. During this period Monsanto placed large orders for Harpin as a seed treatment component on their 2010 North American roll-out of Roundup Ready 2 Yield™ soybeans. These commercial scale orders far exceed the top of the range of expectations for the first year of our longterm agreement with Monsanto. These orders are being fulfilled during the second half of 2009 and it is expected that they will contribute significantly to the second half and full year results.

As noted in our 2008 statement, we expect an ongoing seasonal pattern of stronger second half sales as large shipments to Monsanto replace direct sales to growers spread throughout the year. This timing effect, combined with the global economic slowdown, led to a decline in product sales for the first half period. Our product sales were impacted by the residential housing and commercial real estate recession in the United States and by the reduced credit available to many of our customers throughout the world. We expect the second half sales to recover as sales to Monsanto offset these factors.

The Harpin commercialisation agreement signed in December 2008 provides Monsanto with the exclusive use of our second generation Harpin alpha beta as a seed treatment on cotton, corn, canola, soybeans and certain vegetables. We are optimistic that the initial success of Harpin as a seed treatment on soybeans will position Harpin for a key role in similar programmes as they are initiated with cotton, corn, canola and certain vegetables. Additionally, the commercial success achieved with Harpin in the first half of 2009 has led us to refocus our development efforts on the “next generation” of Harpin proteins. The objective of this development effort is a crop and effect-specific activity which we believe has significant untapped potential across the agricultural sector.

In May 2009, the Board took the opportunity to significantly strengthen the Company’s balance sheet by raising proceeds of £10 million before expenses (US$15.2 million) in a placing of 7 million new shares. These funds will finance the increase in working capital as we continue our development programmes for foliar Harpin applications and Myconate, as well as the next generation Harpin proteins.

We, along with prospective agrichemical partners are currently conducting extensive field trials for foliar Harpin applications in combination with other seed treatments, such as herbicides and fungicides, with results due later this year. Myconate testing is on a similar path and positive trial results are expected to lead to new partnership agreements in 2010. We are especially encouraged that our strategy is advancing despite a difficult economic environment for the agricultural sector and the economy as a whole.

Full financial report

Website: http://www.planthealthcare.co.uk

Published: September 14, 2009