Oxonica�s Successful Placing on AIM

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) July 20, 2005 --
Oxonica has raised approximately �7.1 million (net of expenses) through a placing of 8,658,796 new Ordinary Shares at 95.8 pence per share

In addition, Oxonica shareholders have converted loans of approximately �2.0 million into Ordinary Shares at 95.8 pence per share, which together with the placing strengthens the balance sheet by �9.1 million

The placing shares will represent approximately 23.5 per cent of the enlarged share capital of Oxonica following admission of its Ordinary Shares to AIM

On Admission, Oxonica will have a market capitalisation of approximately �35.3 million

The lead investors in the placing have been Richard Farleigh, Foresight 2 VCT plc, and Stagecoach Group plc

Oxonica is admitting its ordinary shares to trading on AIM to raise additional capital for Group development. Admission to AIM will also raise its profile internationally with customers and suppliers and assist in the recruitment, retention and incentivisation of employees

Oxonica focuses on the development of innovative commercial solutions for international markets using its expertise in the design and application of nanomaterials

The net proceeds will help to develop and market Oxonica�s commercial solutions, including the current products Optisol� and Envirox�, worldwide, to carry out any additional required product testing, to add to its research capabilities, to invest in the further commercialisation of Oxonica�s UV protection technology and to accelerate the development of its biomarker technology

The number of Ordinary Shares in issue following Admission will be 36,805,329

Oxonica will have a RIC code of OXN.L

Panmure Gordon & Co are nominated adviser and broker to Oxonica

Commenting on the Placing and Admission, Dr Kevin Matthews, Chief Executive of Oxonica said:

�We are delighted both to have had such a positive response to our fundraising and with today's admission to AIM. The listing and strengthened balance sheet will enhance our profile and visibility with global strategic partners as we seek to develop innovative nanotechnology solutions internationally. Oxonica is already well positioned within the nanotechnology market and we are excited about the future prospects of this evolving industry.�