Genedrive Regulatory News (GDR)

Epistem Holdings Plc

("Epistem" or "the Company")

Pre-Close Trading Update

Epistem (AIM: EHP), the rapidly growing biotechnology company, today announces a pre-close trading statement for the year ended 30th June 2010.

Following a very positive year during which sales in all of the Company's business divisions have made strong progress, the Company is pleased to announce that trading over the year was in line with market forecasts and the Company expects to report growth in year on year after tax profit.

The Company expects to release its final results for the year ended 30th June 2010 on Tuesday 5th October 2010 and will hold an analysts' meeting on the day.

For further information contact:

Epistem Plc

Matthew Walls, Chief Executive Officer ++44 161 606 7258 John Rylands, Chief Financial Officer

KBC Peel Hunt Ltd

Nominated Adviser: James Steel/Vijay Barathan ++44 207 418 8900

Defacto Communications

Mike Wort/Anna Dunphy ++44 207 861 3838

Notes for editors

Epistem is a biotechnology company commercialising its expertise in epithelial stem cells in the areas of oncology, gastrointestinal and dermatological diseases. Epistem develops innovative therapeutics, biomarkers and diagnostics alongside providing contract research services to drug development companies. The Group's core expertise is focused on the regulation of adult stem cells located in epithelial tissue, which includes the gastrointestinal tract, skin, hair follicles, breast and prostate. Epistem does not conduct research in the areas of embryonic stem cells or stem cell transplantation.