INS.L Regulatory News (INS)

26 March 2012

Instem plc

("Instem", or the "Company")

Establishment of Instem India

Instem plc (AIM: INS.L), a leading provider of IT applications to the global early development healthcare market, is pleased to announce the establishment of Instem India Private Limited ("Instem India"), a wholly owned subsidiary of the Company.

Instem India will be based in Pune, approximately 80 miles east of Mumbai, close to a large concentration of IT and life sciences companies. Two independent contractors, who have been working in the region for Instem for several years, will immediately be transitioned to full-time permanent employees. It is anticipated that this will grow to be a core team of 4-5 permanent technical staff, capable of contributing to a broad range of internal software development and product testing activities. Instem's existing customers in the region include Advinus Therapeutics, based in Bangalore, which in January increased its user licences for Instem software by 40%.

The local operation will improve Instem's ability to rapidly and cost effectively respond to new opportunities requiring additional software resources in India. The team will extend Instem's ability to comprehensively support its growing client portfolio in the Asia Pacific region, which accounted for over 40% of the new Provantis client sites over the last three years.

The team will also be able to oversee work undertaken by additional contractor resources employed in the region, where well-qualified, experienced staff can be quickly added for short or long-term assignments.

With high quality IT infrastructure in place, a 5.5 hour time zone difference to the UK and closer proximity to Instem's Shanghai office, Instem India will be well connected to the wider Instem team.

In the longer term, we anticipate that Instem India will provide a focal point for sales support and service delivery as the Southern Asian market develops.

Phil Reason, Chief Executive Officer of Instem, commented: "Instem continues to widen its presence beyond its more traditional markets of North America, Europe and Japan to emerging markets, most notably in the Asia Pacific region. These markets are growing in importance as the number of early development facilities increases, and they move towards a greater level of study management automation in harmony with their Western counterparts.

We anticipate that our newly established presence in Pune, India, will greatly assist in rapidly and cost effectively responding to new business opportunities for the Company both globally and within the region."

For further information, please contact:

About Instem plc

Instem (AIM:INS.L) is a leading supplier of IT solutions to the early development healthcare market. Instem's pre-clinical study management solutions accelerate drug and chemical development by increasing productivity, automating processes and enhancing practices that lead to safer and more effective drugs.

In March 2011 Instem acquired BioWisdom Limited, a leading provider of software solutions for extracting intelligence from R&D related healthcare data and subsequently renamed the business Instem Scientific. The acquisition broadened and strengthened Instem's Centrus™ product suite, accelerating the product development roadmap.

Instem has over 130 customers in North America, Europe, China, India and Japan, including sixteen of the top twenty pharmaceutical and biotech companies such as GlaxoSmithKline and AstraZeneca. The Company employs over 110 people in six offices in the U.S, UK, and China; with additional resource locations in India and a full service distributor in Japan. It is estimated that approximately half of the world's pre-clinical drug safety data has been collected over the last 20 years via Instem software.

To learn more about Instem please visit the Company's website, www.instem.com, or its investor centre http://investors.instem.com/.