5 September 2008

Oxonica plc

Second statement regarding Licence and Patent Dispute with Neuftec Limited

Oxonica plc ("Oxonica") a leading international nanomaterials group, today issues the following statement in connection with the licence and patent dispute between its wholly owned subsidiary Oxonica Energy Limited ("Energy") and Neuftec Limited ("Neuftec"), a company registered in the Commonwealth of Dominica.

On July 12th 2007 Oxonica issued a statement that Neuftec had confirmed that Envirox™ sourced from Nyacol (the form of Envirox™ currently sold by Oxonica) does not come within the scope of its granted European patent in the UK (EP(UK)1299508) and that the only issue remaining was the interpretation of the wording of the licence agreement and whether royalties are due on Envirox™ sales up to the date the licence agreement was terminated.

The case regarding the interpretation of the licence agreement was heard in the High Court, London on 11TH June 2008. In the judgment of Deputy Judge Peter Prescott QC handed down today it was found that royalties are payable to Neuftec on Envirox™ under the licence agreement when it was in force. There will shortly be a further hearing regarding the royalties payable, the payment of costs and permission to appeal. Oxonica has previously provided for £408k based on its estimate of Envirox™ royalties that may be payable. Oxonica has been advised by its legal advisors that it has good grounds for an appeal, which it is currently considering.  

For further information, please contact:

Oxonica plc                                               01865 856 700

Kevin Matthews, Chief Executive

Richard Clarke, Finance Director

The Broadcast PR Business                       0207 7469 4036

Matthew Locke

Notes to Editors

About Oxonica plc - www.oxonica.com

Oxonica (AIM: OXN.L) is one of the leading international nanomaterials groups with products already launched into international markets and is listed in London on the AIM market. It was spun-out from Oxford University in 1999. Oxonica's mission is to focus on the development of innovative commercial solutions for international markets using its expertise in the design and application of nanomaterials. It owns a portfolio of demand driven products that offer substantial benefits to the target markets of energy, materials, security and diagnostics.

The Group currently has four operating businesses: Oxonica Energy, Oxonica Materials, Oxonica Security and Oxonica Diagnostics. Oxonica has already launched products into international markets. Lead products include:

• Envirox™ fuel combustion catalyst - a catalyst improving fuel economy and reducing emissions

• Optisol™ UV absorber - a revolutionary photostable UV protection system designed to optimise the performance of quality sunscreens and anti-premature aging products

Oxonica is also active in searching for the next generation of products and is already engaged in developing transformational detection technologies which will enable a new generation of ultrasensitive multiplex diagnostic tools for the clinical diagnostic life science and security markets. In addition, Oxonica is developing other UV absorber technologies into polymer systems and coatings, based on similar technologies to that used in Optisol™.

• News Channel