AVO.L Regulatory News (AVO)

31 October 2016

ADVANCED ONCOTHERAPY PLC

("Advanced Oncotherapy" or the "Company")

Industrialisation agreement with Thales

Terms of manufacturing of the first LIGHT machine finalised

Advanced Oncotherapy (AIM: AVO), the developer of next-generation proton therapy systems for cancer treatment, announces that it has finalised the details of the contract for manufacturing the first LIGHT machine with Thales. This forms part of the partnership with Thales that was announced in February 2016.

Thales has selected one of its factories located in France, to house the first manufacturing line. The line is located in a 2,800sqm building and consists of two configuration and test production lines for the linear accelerator, along with one test and development area for the treatment room. In addition, Thales has already started to carry out high power RF testing and conditioning of accelerating modules and sub-systems in its Velizy site near Paris.

This step is an important milestone in the Company's long-term commercialisation plan and is a natural progression in the partnership between Advanced Oncotherapy and Thales.

Thales is completing the engineering studies needed to optimise the integration processes, with the view of setting up a cost-efficient manufacturing platform for the production of the machines. The cost of these activities is funded by Advanced Oncotherapy and will be recovered through the retention of 100% of the gross margin on the first LIGHT machines produced.

Thales intends to organise the series production so as to drive down costs, whilst operating under an appropriate quality framework.

Thales is a well-established manufacturer of high RF energy equipment including klystrons, electron tubes, amplifiers and X-ray detectors, as well as synchrotrons, accelerators and advanced medical imaging equipment. The cooperation offers Advanced Oncotherapy access to its unique execution and engineering skills to manage the transition from prototype to a series production manufacturing line, as well as cost reduction capabilities.

Commenting, Nicolas Serandour, Chief Executive Officer of Advanced Oncotherapy, said: "This agreement with Thales is a clear validation of all the work done by both companies since we started our collaboration in February. It is also a great testimony of our common ambition and vision to make proton therapy available to as wide a population as possible throughout the world. The factory will allow us to produce eight machines per year, which is important as we continue building a very large and promising pipeline."

Eric Huber, Managing Director of Large Instruments activity at Thales, commented: "Wherever safety and security are critical, Thales delivers. We feel that our work on the LIGHT accelerator is a natural extension of our activities in high RF energy equipment and systems. We believe Advanced Oncotherapy's smarter proton therapy solution will create a more effective, targeted cancer treatment."

About Thales www.thalesgroup.com

Thales is a global technology leader for the Aerospace, Transport, Defence and Security markets. With 62,000 employees in 56 countries, Thales reported sales of €14 billion in 2015. With over 22,000 engineers and researchers, Thales has a unique capability to design and deploy equipment, systems and services to meet the most complex security requirements. Its exceptional international footprint allows it to work closely with its customers all over the world.

About Advanced Oncotherapy Plc www.avoplc.com

Advanced Oncotherapy is a provider of particle therapy with protons that harnesses the best in modern technology. Advanced Oncotherapy's team "ADAM", based in Geneva, focuses on the development of a proprietary proton accelerator called Linac Image Guided Hadron Technology (LIGHT). LIGHT accelerates protons to the energy levels achieved in legacy machines but in a unit that is a quarter of the size and between a quarter and a fifth of the cost. This compact configuration delivers proton beams in a way that facilitates a greater precision and electronic control which is not achievable with older technologies.

Advanced Oncotherapy will offer healthcare providers affordable systems that will enable them to treat cancer with an innovative technology as well as better health outcomes and lower treatment related side effects.

Advanced Oncotherapy continually monitors the market for any emerging improvements in delivering proton therapy and actively seeks working relationships with providers of these innovative technologies. Through these relationships, the Company will remain the prime provider of an innovative and cost-effective system for particle therapy with protons.