Bioquell Regulatory News (BQE)

2 December, 2011

BIOQUELL PLC

Award of a £1.2 million development contract by General Dynamics as part of the new SV vehicle for the UK Ministry of Defence

Bioquell PLC (LSE: BQE) ("Bioquell") - provider of specialist low temperature, residue-free bio-decontamination and filtration technologies to the healthcare, life sciences and defence sectors - announces that it has been awarded a £1.2 million development contract relating to the new reconnaissance vehicle being developed by General Dynamics for the UK Ministry of Defence.

Background

General Dynamics UK LLC, a subsidiary of the US General Dynamics Group, has been awarded a contract by the UK Ministry of Defence for the Specialist Vehicles Programme Demonstration, Manufacture and In-Service Support for the Reconnaissance Block 1 Vehicles and Common Base Platform (the "SV Programme").

Bioquell UK Limited, a subsidiary of Bioquell PLC, develops and manufactures, among other things, Chemical, Biological, Radiological and Nuclear ("CBRN") filtration systems as well as Environmental Control Systems ("ECS").

Contract award

General Dynamics - Santa Bárbara Sistemas, S.A., a Spanish subsidiary of the General Dynamics Group, has awarded Bioquell UK Limited a development contract worth approximately £1.2 million relating to ECS and CBRN systems for the demonstration phase of the SV Programme.

Once this initial development contract has been fulfilled, it is expected that contracts relating to the manufacture and in-service phases will be awarded, with shipments expected to start in 2014 and expected to run for at least five years.

Commenting on this contract award, Nick Adams, Group Chief Executive of Bioquell PLC, said:

"We are extremely pleased to have been awarded this prestigious development contract relating to the British Army's new reconnaissance vehicle."

- Ends -

Enquiries:

Bioquell PLC 01264 835 900

Nick Adams Group Chief Executive

Mark Bodeker Chief Operating Officer / Finance Director

Notes to editors:

§ Bioquell is a UK-headquartered, international technology company with two divisions:

o Bio-decontamination which sells specialist bio-decontamination products and services into the Healthcare, Life Sciences and Defence sectors, with most of its revenues generated from overseas customers; and

o TRaC which provides UK corporates with specialist Testing, Regulatory and Compliance services - many of which are required by national and international regulations.

§ Bioquell's gas phase bio-decontamination technology uses hydrogen peroxide vapour ("HPV") - which is highly efficacious at eradicating micro-organisms such as bacteria, viruses and fungi at room temperature - and is subsequently broken down using specialist catalysts to water vapour and oxygen at the end of the bio-decontamination process.

§ Bioquell's specialist filtration technology including peroxide catalysis and chemical, biological, radiological and nuclear ("CBRN") filtration systems used principally in the defence sector is highly complementary to the defence application for its HPV technology which is used to decontaminate biological and chemical warfare agents.

§ Bioquell's bio-decontamination technology:

o is used by bio-pharmaceutical, biologics, biotechnology and research institutions to provide sterile equipment and/or sterile working environments - which is of particular interest to organisations working with biologically-derived drugs;

o is used to eradicate drug resistant organisms associated with Hospital Acquired Infection as well as problematic viruses from the hospital environment. Independent scientific research has demonstrated that 'bioquelling' hospital equipment and facilities reduces the rates of hospital acquired infection;

o was selected by the United States Department of Defense for the JSSED programme to decontaminate sensitive equipment against biological and chemical warfare agents;

o benefits from a number of granted or pending patent filings in the UK and internationally; and

o is used in other sectors where bioburden can create significant problems including, for example, the food industry.

§ Bioquell currently has overseas operations in the USA, France, Ireland, Singapore and China.

§ TRaC sells its specialist testing services to the product development and engineering departments of a broad range of companies and organisations, principally based in the UK, with a particular focus on the aerospace, military and telecoms sectors.