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Syntopix Group Plc successful Placing and Admission to AIM

23 Mar 2006

IP2IPO Group plc (AIM: IPO) ("IP2IPO"), the intellectual property commercialisation company, is pleased to note that today is the first day of trading on AIM of ordinary shares of 10p each ("Ordinary Shares") in Syntopix Group plc ("Syntopix"), (AIM: SYN) a spin-out company from The University of Leeds focused on dermatological diseases. Syntopix raised £4.0 million (before expenses) at a placing price of 177p per Ordinary Share (the "Placing Price") and its market capitalisation, on admission to AIM at the Placing Price, was £10.1 million. Following the placing IP2IPO, through its subsidiary Techtran Group Limited, owns 920,855 Ordinary Shares in Syntopix (worth £1.6 million at the Placing price), representing 16.2% of the Syntopix enlarged share capital.

For further information about IP2IPO or Syntopix please contact:

IP2IPO 020 7489 5210
Alan Aubrey, Chief Executive Officer  
Syntopix Group plc 0845 1259204
Gwyn Humphreys, Chairman Rod Adams, Chief Executive Officer  
KBC Peel Hunt Ltd 020 7418 8900
Megan MacIntyre  
Buchanan Communications 020 7466 5000
Tim Anderson, Mark Court, Mary-Jane Johnson  

The announcement issued by Syntopix Group plc today follows: SYNTOPIX GROUP PLC ("Syntopix" or "the Company")

FIRST DAY OF DEALINGS ON THE AIM MARKET OF THE LONDON STOCK EXCHANGE Syntopix Group plc, (AIM: SYN) a drug discovery and development company focused on dermatological diseases, announces its flotation on the AIM market of the London Stock Exchange today. Highlights of the Placing:

  • £4.0 million (£3.3 million net of expenses) has been raised for Syntopix via a placing at 177 pence per share
  • On admission the market capitalisation of Syntopix at the placing price will be £10.1 million
  • The proceeds of the placing will be used to finance the Company's drug development programmes in dermatology
  • KBC Peel Hunt Ltd is the Company's Nominated Adviser and Broker
Business Highlights:
  • Syntopix was formed in 2003 as a spin-out from the University of Leeds to commercialise the research of the Company's two scientific founders, Dr Jon Cove and Dr Anne Eady, into antibiotic resistance and diseases of the skin.
  • Syntopix has a growing patent portfolio and a pipeline of nine drug candidates awaiting preclinical and clinical trials in acne and MRSA.
  • The Company has a highly experienced scientific, commercial and non-executive team who between them have a proven track record of developing pharmaceutical products and technology and have links with large pharmaceutical companies.
  • The Company's Chairman is Dr Gwyn Humphreys, a founder and chief executive of Bradford Particle Design Limited, one of the UK's most successful spin-out companies sold for $200 million in January 2001 to Inhale Therapeutic Systems Inc. Syntopix' Chief Executive Officer is Rod Adams, who has extensive experience in running and building healthcare companies, particularly in the field of dermatology.
  • The Company believes that the market for dermatological products, which has global annual sales of more than $10 billion and clear evidence of unmet medical need, has suffered a lack of product innovation and there are many limitations identified in some of the leading products. Syntopix' strategy seeks to reduce the cost and risk of successfully discovering and developing dermatology drugs by concentrating on change of use and combinations of known compounds.

Commenting on the flotation, Rod Adams, Syntopix' Chief Executive Officer, said: "I am delighted by the response to the Syntopix flotation. Commencing life as a public company is extremely exciting for us and we look forward to progressing our drug development programmes in dermatology and to generating value for our shareholders."

PLACING STATISTICS
Placing Price 177 pence
Number of Placing Shares 2,259,887
Number of Non EIS Shares and Non VCT Shares 1,785,307
Number of EIS Shares and VCT Shares* 474,580
Number of Ordinary Shares in issue on Admission 5,683,981
Market capitalisation of the Company at the Placing Price on Admission £10.1 million
Placing Shares as a percentage of the Enlarged Issued Share Capital 39.8 per cent.
Gross proceeds of the Placing receivable by the Company £4.0 million
Net proceeds of the Placing receivable by the Company £3.3 million

*Application has been made for admission of 474,580 Ordinary Shares in respect of the EIS Shares and the VCT Shares. Dealings are expected to commence in these Ordinary Shares on 24 March 2006.

For further information about IP2IPO or Syntopix please contact:

IP2IPO 020 7489 5210
Alan Aubrey, Chief Executive Officer  
Syntopix Group plc 0845 1259204
Gwyn Humphreys, Chairman Rod Adams, Chief Executive Officer  
KBC Peel Hunt Ltd 020 7418 8900
Megan MacIntyre  
Buchanan Communications 020 7466 5000
Tim Anderson, Mark Court, Mary-Jane Johnson  


Notes for editors

About Syntopix Group plc

Syntopix, a company focussed on the discovery and development of drugs for the topical treatment of dermatological diseases, was founded in 2003 as a spin-out from the University of Leeds by Dr Jon Cove and Dr Anne Eady, two of the leading experts in skin microbiology, with initial funding from The Wellcome Trust. Syntopix' strategy is to seek to reduce the risks and costs of drug discovery and development by discovering novel uses for known compounds; by concentrating on compounds and combinations of compounds that have a history of safe use; and working with compounds that have known properties, for example antimicrobials and anti-inflammatories.

The Company currently has seven pending UK patent applications. Syntopix is currently focussed on acne and Staphylococcus aureus infections and has identified a pipeline of lead drug candidates that it intends to take through pre-clinical and, as appropriate, clinical trials. The Company intends to out-license products to commercial partners on obtaining proof of principle and to seek co-development partnerships. The Company is based at the Institute of Pharmaceutical Innovation in Bradford, giving access to the expertise in skin biology, formulation and toxicology at the universities of Bradford and Leeds. Syntopix' shareholders include Techtran Group Limited, a subsidiary of IP2IPO Group plc, The Wellcome Trust Limited, University of Leeds Limited, White Rose Technology Ltd and Ridings Early Growth Investment Company Limited.

For further information please visit .www.syntopix.com

About IP2IPO Group plc

IP2IPO is an intellectual property (IP) company that specialises in commercialising university technology. The Company was founded in 2001 and listed on the AIM Market of the London Stock Exchange plc in October 2003. IP2IPO's first partnership was with the University of Oxford. In return for an investment of £20 million, IP2IPO has acquired 50 per cent of the University of Oxford's equity in spin-out companies and technology licenses based on intellectual property created at the Chemistry Department until 2015. In November 2003, IP2IPO created a £5 million seed capital fund for investing in spin-out companies across the University of Oxford, not just those originating within the Chemistry Department. In March 2002, IP2IPO entered into a second long-term partnership with the University of Southampton. Under the terms of this partnership, IP2IPO is committed to working with the University of Southampton in the identification and facilitation of spin-out companies from across the University of Southampton and to investing £5 million in early-stage University of Southampton spin-out companies over a four year period in return for equity stakes in those companies.

In addition, IP2IPO also received a 20 per cent stake in Southampton Asset Management Limited, a company that has been formed to hold the University's equity stakes in its spin-out companies. The partnership has a term of at least 25 years. IP2IPO entered into its third long-term partnership in May 2003 with King's College London. IP2IPO works with King's College London to help identify and progress commercialisation opportunities as well as invest £5 million in seed capital in spin-out companies from King's College London over a five year period in return for equity stakes in those companies. In addition, IP2IPO receives 20 per cent of King's College London's equity in spin-out companies and technology licenses. The partnership has a term of 25 years. In October 2003, IP2IPO announced a fourth partnership with the Centre for Novel Agricultural Products ("CNAP"), based at the University of York. CNAP is a flagship research centre that specialises in plant and microbial gene discovery. Under the terms of the partnership a new company, Amaethon Limited, has been created which has the right to commercialise CNAP's IP for 25 years. IP2IPO has invested £1.15m in Amaethon Limited in return for a 40 per cent. equity stake in Amaethon Limited (the remaining equity being owned by the University of York) and will also invest in the spin-out companies based on CNAP's IP which Amaethon Limited creates.

In June 2004, IP2IPO acquired Top Technology Ventures Limited, an investment adviser to early stage technology funds. This combines IP2IPO's expertise in the creation of new ventures based on world leading university IP with Top Technology's focus on making early stage venture capital investments. In January 2005, IP2IPO acquired Techtran, a company set up in 2002 to commercialise university intellectual property under a long-term technology commercialisation contract with the University of Leeds. Under the terms of the contract Techtran receives a significant (30 per cent.) interest in spin-out companies created and technology licences negotiated, in return for the provision of technology transfer services to the University. In May 2005, IP2IPO announced the launch of Modern Biosciences, which will in-license life science intellectual property created by medical researchers at universities with which IP2IPO already has partnerships, other universities in the UK and similar academic and charitable research institutions. Modern Biosciences' objective is to further develop the intellectual property which it in-licenses with a view to creating substantial value either by subsequently licensing these development programmes to the pharmaceutical industry or via the creation of new ventures.

In December 2005, IP2IPO entered into its sixth long-term partnership with the University of Bristol. IP2IPO will work with the University of Bristol to help identify and progress commercialisation opportunities as well as invest an initial £5 million in seed capital in spin-out companies from the University of Bristol over a five year period in return for equity stakes in those companies. In return, IP2IPO will receive 13.3 per cent of equity spin-out companies from the University of Bristol at the time that the spin-out company is established prior to investment. The partnership has a term of 25 years. In February 2006, IP2IPO entered into its seventh long-term partnership with the University of Surrey. IP2IPO will work with the University of Surrey to help identify and progress commercialisation opportunities as well as invest an initial fund of up to £5 million in seed capital in spin-out companies from the University of Surrey in return for equity stakes in those companies.

In addition, IP2IPO will receive 13.3% per cent of in spin-out companies at the time that the company is established prior to investment. The partnership has a term of 25 years. In March 2006, IP2IPO entered into an exclusive long-term partnership with the University of York. The partnership is in addition to IP2IPO's current partnership with the Centre for Novel Agricultural Products, IP2IPO will work with the University of York to help identify and progress commercialisation opportunities as well as invest an initial fund of £5 million in seed capital in spin-out companies from the University of York in return for equity stakes in those companies. In addition, IP2IPO will receive 25% of the equity in any spin-out company from the University at the time that the company is established, prior to investment, if IP2IPO invests in the company from the fund and 15% of the equity if it does not invest from the Fund. IP2IPO will also receive 10% of any income which the University of York receives from licencing during the lifetime of the partnership. The partnership has a term of 25 years. To date, 6 spin-out companies from the IP2IPO portfolio have listed on the AIM Market of London Stock Exchange plc: Offshore Hydrocarbon Mapping plc, Synairgen plc, VASTox plc, Proximagen Neuroscience plc, GETECH Group plc and Syntopix Group plc. There has been one trade sale: Toumaz Technology Limited was sold to Nanoscience Inc.