INS.L Regulatory News (INS)

28 February 2013

Instem plc

("Instem", or, the "Company")

US Government Contract Win

Provantis Preclinical Software Chosen for National Toxicology Program by National Institute of Environmental Health Sciences

Instem (AIM:INS), a leading provider of IT solutions to the global early development healthcare market, announced today that the National Institute of Environmental Health Sciences (NIEHS), part of the National Institutes of Health (NIH), has purchased the Provantis 9® preclinical software suite via SaaS (Software-as-a-Service) to support National Toxicology Program studies. These Reproductive, Immunotox, Neurobehavioural, Sensitisation and Carcinogenicity studies are primarily carried out at contractor laboratory sites throughout the United States.

The value of the award to Instem, funded completely by the US government, is approximately $870,000 in the first year, with potential to extend and expand the agreement up to a further 9 years, giving a possible total contract value for all 10 years of between $6.2m-$7.6m. The contract also includes the ability to expand to a larger number of additional sites on the same terms, which could result in further material increase in revenue.

The National Toxicology Program (NTP) is an interagency program established in 1978 to coordinate toxicology research and development across the Department of Health and Human Services. The program was also created to strengthen the science base in toxicology, develop and validate improved testing methods and provide information about potentially toxic chemicals to health regulatory and research agencies, scientific and medical communities, and the public.

Headquartered at NIEHS, the NTP is managed by the NIEHS and supported by the United States Food and Drug Administration and the Centers for Disease Control and Prevention.

Phil Reason, CEO of Instem plc, commented, "Such a significant contract with the US government, won through a competitive tendering process, is not only a fantastic endorsement of Instem's innovative software but also of our strategy to support collaborative working practices. Our SaaS delivery model enables the sharing of the software between dispersed communities from multiple organisations, The accessibility of Provantis data will also enable the National Institute of Environmental Health Sciences to meet a key goal of combining study information with a broader set of biology information to improve scientific insights.

"This long term contract will also provide funding for the development of the Provantis suite in areas specific to the National Toxicology Program, adding further depth to our market leading study management platform and positioning Instem well for anticipated contract extensions and any similar future projects."

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About Instem plc

Instem 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.

Instem has over 130 customers in North America, Europe, Australia, China, India, Singapore and Japan, including 16 of the top 20 pharmaceutical and biotech companies such as GlaxoSmithKline and AstraZeneca. The Group employs over 110 people in seven offices in the US, UK, China and India; and has 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, making Instem an ideal partner to help unlock the scientific/commercial value from these legacy repositories.

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

About NIEHS

The NIEHS supports research to understand the effects of the environment on human health and is part of the National Institutes of Health (NIH). Its mission is to reduce the burden of human illness and disability by understanding how the environment influences the development and progression of human disease.

For more information on environmental health topics, visit www.niehs.nih.gov.

The NIH - The Nation's Medical Research Agency - includes 27 Institutes and Centers and is a component of the U.S. Department of Health and Human Services. It is the primary federal agency for conducting and supporting basic, clinical and translational medical research, and it investigates the causes, treatments, and cures for both common and rare diseases. For more information about NIH and its programs, visit www.nih.gov.

This project has been funded in whole or in part with Federal funds from the National Institute of Environmental Health Sciences, National Institutes of Health, Department of Health and Human Services, under Contract No. HHSN27320130004C.