Biome Tech Regulatory News (BIOM)

12 July 2012

Biome Technologies plc ("Biome", "the Company" or "the Group")

Patent Litigation Update

Biome is pleased to announce significant positive developments in the patent litigation cases currently being heard against its joint venture company, Biotec.

Biome first announced on 29 May 2007 that it was evaluating claims against Biotec, by Novamont S.p.A ("Novamont"), an Italian competitor. Subsequent updates have clarified that Novamont had brought proceedings in the French and Italian courts against Biotec and SPhere, France (Biome's joint venture partner in Biotec), claiming infringement of the French and Italian designations of a number of Novamont's patents (EP'505, EP'559 and EP'120) by the products that are or have been manufactured and sold by Biotec.

The result of the case being conducted in the Turin court was received by the Company on 10 July 2012. The Board is pleased to report that the court in the first instance has found in favour of Biotec and has revoked the Italian designations of Novamont's patents EP 505, EP '559 (with the exception of claim 12, however this also was found not to be infringed), and EP '120 (claims 21 and 22). This is the first formal finding in the Italian jurisdiction and represents a very encouraging development in this multi-jurisdictional process. Appeal paths are available for these findings in Turin and a parallel case in Milan remains ongoing.

Over the past eighteen months, Biome and its joint venture partner, SPhere, have sought to emphasise the broader validity of Biotec's position in Europe. Following proceedings, SPhere received two German first instance court judgements that the German designation of Novamont's patent EP '559 and EP '120 are invalid in this territory. Subsequently, Novamont has appealed the EP '559 decision. Biotec also engaged in a similar process to demonstrate that the German designation of Novamont's patent EP '505 was invalid in Germany, prior to its expiry in January 2009. In the context of this process, Novamont declared in a legally binding way to the German Federal Patent Court that it will refrain from enforcing the German designation of its patent EP'505 against Biotec in Germany as well as to refrain from claiming any damages from Biotec in connection with the German designation of patent EP '505. Consequently Biotec has withdrawn this invalidity case.

It has been noted before that the first court judgment on this litigation was received in France in April 2010 and was in favour of Biotec and SPhere in that no proof of infringement was found for all three Novamont patents (above) and certain claims of EP '120 were found to be invalid. Various appeal paths in the French court were available to all parties and earlier this year Biotec and SPhere lodged an appeal against the remaining validity of Novamont's patents EP'559 and EP'505 in France. Subsequently, Novamont has appealed the complete French court decision.

Biome and Biotec continue to take professional and technical advice with regard to this litigation. The Board has sought and will continue to seek complete resolution of this matter as soon as it is feasible.

-Ends-

For further information please contact:

Biome Technologies plc

Paul Mines, Chief Executive Officer

Declan Brown, Group Finance Director

www.biometechnologiesplc.com Tel: +44 (0) 2380 867 100

Daniel Stewart & Company plc

David Hart

www.danielstewart.co.uk Tel: +44 (0) 20 7776 6550

First Columbus

Chris Crawford/Kelly Gardiner

www.first-columbus.com Tel: +44 (0) 20 3002 2070

FTI Consulting

Oliver Winters/Latika Shah Tel: +44 (0) 20 7831 3113