Plant Impact Regulatory News (PIM)

Plant Impact plc

("Plant Impact", "Pi" the "Group" or the "Company")

Preliminary results for the year ended 31 March 2011

Plant Impact plc (AIM:PIM), which develops and markets ecologically friendly crop nutrition and protection products, today announces its preliminary results for the year ended 31 March 2011.

Corporate Highlights

ü Agrimatco evaluation & distribution agreement - Sept 10

ü Cebeco distribution agreement - Nov 10

ü Arysta Mexico distribution agreement - June 10

ü First sales to Arysta (Poland, Czech Rep and Romania)

ü New chairman - Feb 11

Research & Development Highlights

ü Syngenta Brazil soy trials - Sept 10

ü Brazil crop nutrient registrations - Nov 10

ü USDA field trial results

ü Potato field trials

Financial Highlights

ü Increase in turnover to £1,784k (2010: £1,411k)

o Crop nutrient turnover £1,784k (2010: £911k)

o BugOil turnover £nil (2010: £500k)

ü Improved Crop Nutrient gross profit margins 70% (2010: 63%)

ü Research & development and sales & marketing spend of £2,146k (2010: £1,954k)

ü Loss before tax of £1,886k (2010: £1,685k)

ü Cash at 31 March 2011 of £1,173k (31 March 2010: £2,895k)

Post year end

ü Arysta Lifescience subscription - May 2011

ü Arysta Lifescience agreements, US T&O and Brazil - May 2011

ü Engage Agro Canadian distribution agreement - June 2011

David Jones, Chairman of Plant Impact plc, commented:

"The past year can be characterised as one of determined implementation of the Pi crop nutrient strategy. Choices were made to focus on two commercialised products; InCa and PiNT in crop sectors in which we believe show the greatest promise. Sales nearly doubled in the year. On the other hand, the vagaries of the pesticide registration process in the UK and USA, delayed an important Arysta Life Science (ALS) BugOil milestone which led to an overall shortfall on expected revenue.

Overall, I am satisfied that the commercial progress we made with the two nutrient products in the year is confirmation that our direct selling and partnering strategy is working and will provide the platform for growth. Meanwhile, scientific characterisation of our pipeline has confirmed prospects for Alethea and a continuation of innovation."

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Chairman's Statement

I was delighted to accept the role of Chairman of the Board of Plant Impact in February. I join with the rest of the Board in thanking Martin Robinson for his direction of the company since 2005, and look forward to his future contribution as a Non-Executive Director.

The last year was again an exceptional year for farmers around the world. All crop commodities were highly priced and many commodities such as sugar, cotton and cocoa reached highs not seen in decades. Following on from the price highs of 2008, which were largely attributed to the actions of speculators, this second round of record prices have focussed minds on the underlying global food commodity supply/demand balances. In the past, yield increases underpinned by a steady improvement in seed technology and chemical inputs have kept pace with increasing global food demand. The world's farmers have fed the world's population from essentially the same acreage. However now, to use a phrase applied in this context by John Beddington (Government's Chief Scientific Advisor), the world faces a 'perfect storm' of accelerating food demand and declining flexibility of supply. In the eye of this perfect storm is the rapid enrichment of populous Asia stimulating demand and a declining rate of yield increases for key world crops. This deceleration in yield increase is further compromised by a rise in farmer risk as a consequence of volatile weather patterns, deteriorating irrigation water availability and quality. Finally, an appreciable new market for agricultural produce; the production of corn, sugar and oil crops as feedstock for biofuels is diverting prime agriculture land away from food production. Only some of these factors can be ameliorated by policy changes, the most fundamental can only be addressed by more and better crop yield enhancing technologies.

A small number of large research and development based majors with global reach and understanding of world agriculture are able to successfully innovate in these areas. They are variously responsible for improving seeds, new chemistry for the control of pests and diseases, and the effective delivery of essential crop nutrients but what has so far been neglected is the notion of supporting crops against environmental stress: heat; drought; poor quality water. Solutions to these problems open new and exciting possibilities to make a further step change to secure the world's food supply.

This is a nascent field with mainly boutique sized technology providers. We believe that Pi is one such company with a unique pipeline of crop yield enhancing products that work by tackling crop stress factors. Pi's products were conceived through a deep understanding of the workings of plant systems, especially nutritional balances and immune responses, that led in turn to rationally constructed chemistry that assists crop plants resist a wide range of stresses. The trial results with Pi products from many crops in many countries grown in many different circumstances, show a remarkably consistent pattern of beneficial results measured by higher yield and better post-harvest quality. In a nutshell, this is the promise and excitement that attracted me to Pi and motivates the entire team.

The Company's strategy is first to achieve financial break-even through organic growth with direct sales of proven products, then, with evident proof of commercial acceptance, to partner with an R&D major to exploit Pi's technologies globally in major world crops. We believe such partnerships will be achieved because the incumbent input majors are all seeking ways to enhance their grower offer in ways that help crops to reach towards their genetic potential of maximum yield. With growing financial strength, the Company intends progressively to increase its own R&D funding sufficient to convert its pipeline into a flow of commercial products fit for precise purpose, and developing further its intellectual property and specialist knowledge. In time, the board of Pi (the "Board") anticipates that Pi will build upon growing strength in this nascent sector, to establish a productive set of platform technologies to ensure a steady flow of innovation of these types of products.

With the aim of progressing towards financial self-sufficiency, Pi focussed on its proven InCa product in the past year. InCa has shown performance in many crop situations especially in horticulture. Potatoes are often considered as an arable crop, but with many of the characteristics of horticulture. Potatoes respond particularly strongly to InCa and with an appreciable area under cultivation in Western Europe it represents a clear early target market for Pi. Growers in Holland have seen double digit percentage yield increases and marketable quality benefits with InCa treatments. The treatment cost/return equation is also compelling; growers can expect high returns from their investments in InCa treatments. In the past year Pi has assembled a dossier of potato trial results covering the main commercial varieties in Northern Europe. Pi has attracted the interest and support of the Dutch Co-operative Cebeco with whom the company signed a distribution agreement in November last year. We expect progress in the current year with Cebeco driving InCa in the European potato crop market.

The Company also signed an exclusive distribution agreement for Mexico and Central America with Arysta LifeSciences ("ALS"), the largest privately owned crop protection company in the industry. ALS has special skills in crop nutrition in this geography following their purchase of Grupo Bioquimico Mexico a crop nutrition company founded in Mexico. The Board considers that the ALS crop solutions approach is particularly suited for presenting InCa in local agriculture and expects sales in Central America to benefit from this new relationship in the current year.

Pi began its crop enhancement work in horticulture in the Middle East, principally in Jordan, a fertile country with a wide range of fruit and vegetable crops. In September last year, the Company signed an evaluation and distribution agreement for a number of markets in the Middle East with Agrimatco, a well financed and powerful distributor of Agchem, seeds and fertilizers in the region. Again, the Board expects to see the benefit of their commitment translated into sales in the current year.

The Company is at the beginning of the process of partnering with large agricultural R&D companies. but achieved freedom to operate in Brazil last year by securing registrations of its products in Pi's name. Along with InCa, the modified Nitrogen product PiNT is included in large scale soya trials with Syngenta, the market leader in crop protection in Brazil. Brazil is second only to the USA in area of soya, but is catching up fast since they enjoy agronomic advantages in soya cultivation and areas are expanding. Soya in Brazil is an important place to be for a crop technology company. This collaboration is illustrative of the enthusiasm and openness with which R&D majors greet novel technology from third parties.

In the USA, trials with PiNT in the turf amenity market conducted at Penn State University on behalf of the Government agency USDA, proved successful in providing for better turf and lower nitrogen run-off and hence reduced pollution. USDA has given a public and positive endorsement of PiNT and accordingly, the Board expects to make first sales into the large golf green maintenance market this season with a company specialist in this sector, ALS.

An event which occurred post year-end, but which was substantially negotiated and concluded in the review year, has been the investment by ALS in Pi at a substantial premium to the prevailing share price. In exchange, ALS has secured an extension of their development and distribution rights to include Brazilian Horticulture and USA Turf and Ornamentals (including golf course maintenance). The Board considers that this transaction confirms the quality of Pi's technology and progress with its partnering strategy.

On the R&D front, work continues with the Environmental Centre of Lancaster University on the characterization of Alethea, a sophisticated pipeline technology conferring stress tolerance on a range of plants including salt challenged maize (corn), a world crop of the first rank. R&D collaborations in the field now extend over 40 countries and as many crops. Last year was a period when dossiers were built and performance confirmed in a number of important outlets. That process will continue in this current year.

Long term watchers of Pi will no doubt be interested in developments with BugOil, the Company's natural product based resistance breaking insecticide. The field performance of BugOil continues to impress and the dossier of successful trials for the product in sole use and in combination with standard insecticides continues to grow. However, regulatory delays in the USA (work load at the EPA) and Europe have meant that the Company are revising back their anticipated launch date in these principal markets. Also, since country of origin registration is required for overseas registrations, the set back in the UK has wider implications, including delays in several overseas markets. Pi continues in close dialogue with the regulatory authorities and is providing the additional data demanded on BugOil in the UK. The Board will take proper and continuous account of overall commercial prospects when deciding on the amount of resource to dedicate to this product given the demands and short term rewards promised from the 'ready now' crop enhancement range.

Looking back it is clear that 2010/11 was important for the focussed manner in which Pi implemented its growth strategy. In my view, that strategy is both thoroughly realistic with respect to the Company's current capabilities and yet is aspirational of the growth opportunities that the technologies can seize. The Board believes that Pi will be built on incremental achievements that are mutually reinforcing of the aims of self sufficiency and then global growth. I look forward to reporting on these steps as management build position and gain strength for the Company.

Financial review

In the year ended 31 March 2011, revenue was £1,783,525 (2010: £1,410,711). Although the overall increase at 26% is below expectations, the underlying crop nutrient sales met expectations with an increase of 96% from £910,711 in 2010 to £1,783,525 for this year. Crop nutrient revenues have improved for the third year in succession. The 2010 revenues benefitted from the ALS BugOil licence agreement milestone payments, there were no such payments for this year.

Total expenses for the year were £3,114,320 (2010: £2,736,218), an increase of 13.8%. Sales & marketing costs increased by £69,111, as a result of the increased geographical spread of sales activity and the first full year of direct activity in the Americas. Research & Development expenditure increased by £146,179 due to the increased activity in crop nutrient development. General and administrative expenses increased by £180,911 mainly due to an increase in payroll, share based payments, insurance, recruitment fees and plc costs.

The loss for the year attributable to equity shareholders increased to £1,628,838 (2010: £1,417,075). This increase is due to the delays in BugOil regulatory approvals and resultant milestone payments offset by improvements in crop nutrient revenues.

Going Concern

After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Group Financial Statements. Further details are included in the notes to these preliminary results.

Dividends

The Directors currently intend to devote the Group's cash resources to its operations and therefore do not anticipate paying dividends in the near future. They will reconsider the Company's dividend policy as and when the Company is in a position to pay dividends. The declaration and payment by the Company of any dividends will depend on the results of the Company's operations, its financial condition, cash requirements, future prospects, profits available for distribution and other factors deemed to be relevant at the time.

Outlook

In the current year, Bug Oil milestones will be pursued with determination through continued data sourcing and dialogue with the authorities, but the Company's future lies squarely in the promise of the nutrient range. It is here that the majority of the Company's resources will be directed this coming year. The Pi sales team is focused on direct sales of InCa and PiNT and the technical team is positioning the Company's products in sectors which are complimentary to the business aspirations of partners who have global reach and traction with growers. Already in the current year, we are seeing progress with both elements as direct sales and the announcement of a new subscription agreement for 10% of the company with ALS, (the world's largest privately held Ag-Chem company) who purchased the shares at a premium to market of 76%.

I am confident that this is the correct strategy for Pi and that we will be able to report steady progress this year in these twin directions.

I should like to take this opportunity to thank our shareholders who have supported Pi and have shared my belief in the promise of the technologies and management's strategy for commercial development.

David Jones

Chairman

1 July 2011

Chief Executives Review

Chief Executive's Review

(Business Review)

Overview

Pi's drive towards financial self-sufficiency is evidenced by commercial progress with key distributors and the improving crop nutrient sales and margins. Crop nutrient revenues and margins have improved for the third year in succession. During the year ended 31 March 2011, Pi recorded its first annual crop nutrients revenue above £1m. To achieve financial self-sufficiency, the Company continues to secure distribution agreements for crop nutrient products and increases the breadth of field trial development, both in crops and countries. Pi has increased the extent of its distribution agreements with new contracts; ALS in Mexico and Central America, Cebeco in Benelux and Engage Agro in Canada. Evaluation agreements have been signed with ALS and Agrimatco.

Pi has focused its limited resource on key crops in key countries and the benefit of this is becoming apparent. In collaboration with our distributor in the Benelux, Cebeco, the Company has undertaken a significant field trial development programme for InCa on potatoes. This has provided both partners with excellent and consistent field trial results and an improvement in InCa sales. Building on the Brazil visit in 2009, Pi and Syngenta have started a field trial programme on soya. This is a long term project which the Board believes has potential for the Company's products. Both potatoes and soya are first examples of Pi broadening crop exposure from high value horticulture to extensive area arable.

In May 2011, the Company completed a subscription agreement with ALS raising £2.05m and issuing 4,560,530 shares at 45p. In addition, Pi has entered into two commercial agreements with ALS. The first agreement covers the commercial development of the Company's PiNT technology in the turf and ornamental markets in the USA, including the large US professional golf market. The second agreement covers the commercial development of the Company's InCa & PiNT technologies for use in horticulture in Brazil. Horticulture is a key export market for Brazil and ALS has a significant position in the sector. ALS and the Company will also continue to work together to evaluate a number of other emerging markets. The existing evaluation agreement between ALS and Pi, which originally expired in March 2011, has been extended until June 2012. In addition to the time extension, the agreement has been expanded to cover a portfolio of Pi's products in addition to InCa and a further four territories have been added bringing the total to 28.

In June 2011, Plant Impact signed a distribution agreement with Engage Agro for Canada. The agreement is for exclusive distribution of InCa. Canada shows promise for Pi products in several crops including potatoes and apples.

Commercial Development

Arysta Lifescience agreements

Pi has signed four commercial agreements with ALS, these are; Mexico & Central America for InCa, US Turf & Ornamental for PiNT, Brazil horticulture for InCa, PiNT and CST and an evaluation agreement covering 28 countries for InCa, PiNT, CST and Speedo.

Central America

As part of the 10-year agreement, ALS will have exclusive distribution rights for sales and marketing of InCa in Mexico, Guatemala, Costa Rica, El Salvador, Honduras, Dominican Republic, Panama, Belize and parts of the Caribbean.

ALS Mexico has conducted field trials on high value horticultural crops during the previous 18 months mainly in Mexico. During the 2011 and 2012 seasons field trials will be extended to the other Central American countries.

InCa was launched in Mexico during May 2011, with a full marketing and grower demonstration programme scheduled for the remaining 2011. First sales are scheduled for H2 2011.

US Turf & Ornamental

This agreement is exclusive for PiNT and includes the large US golf course market, athletic fields, professional lawncare and ornamentals.

The US has 18,000 golf courses, with a large number of these close to water. PiNT has proven environmental benefits in reduced nitrogen applications and decreased nitrogen leaching into the water courses. ALS's interest in PiNT was a direct result of the USDA field trial programme instigated by Pi two year ago. Golf course turf managers utilise liquid fertilisers on tees and greens. The performance of PiNT offers several benefits for such management including avoidance of unsightly salt 'burn', avoidance of polluting run-off and an improved cosmetic appearance. These add up to premium pricing opportunities for PiNT.

ALS are undertaking a significant field trial programme to replicate and enhance the trials conducted by the USDA. ALS has a dedicated turf and ornamental team which includes product development, sales and marketing capabilities.

Brazil Horticulture

The Brazil horticulture agreement is exclusive for InCa, PiNT and CST.

The ALS Brazil team is instigating field trials on tomatoes, potatoes, melons, grapes and coffee. There are 62,000 hectares of tomatoes, 145,000 hectares of potatoes, 115,000 hectares of melons, 79,000 hectares of grapes and 2.2 million hectares of coffee in Brazil. Pi trials results on these crops from other countries give the Board confidence that economic benefit can be demonstrated in Brazil.

Evaluation agreement

The original evaluation agreement signed between Pi and ALS expired on the 31 March 2011. In June 2011, the two companies signed an extension to the evaluation agreement which in turn expires on the 30 June 2012.

The extended agreement has increased the number of Pi products from InCa only to InCa, PiNT, CST and Speedo. It has also increased the number of countries under evaluation from 24 to 28.

Field trials are scheduled in ALS countries, mainly on horticultural crops. These trials will provide critical information for both companies on their technical and commercial efficacy of Pi products. It is intended that these data sets will lead to business cases for market entry and further distribution agreements with ALS in these 28 countries.

Arysta First Crop Nutrient Sales

ALS continues to make initial sales in new territories for Pi products. During the year the Company sold InCa via ALS in Poland, the Czech Republic and Romania.

Crop Nutrients agreement with Agrimatco

In September 2010, Pi and Agrimatco signed an evaluation, development and distribution agreement covering the Company's InCa, PiNT K, PiNT Ca, Balance, Saxon, Scope, CaB and Speedo additive products.

This agreement covers countries in the Middle East, North Africa, Eastern Europe and Central Asia. Initial crop targets are in high value horticulture with potential extension into some arable crops.

Agrimatco have exclusivity to evaluate the products until 31 December 2011. The evaluation of these products represents a number of field trial development programmes. Following the successful completion of these field trials, Agrimatco will ensure that products are registered locally and will market and distribute them on an exclusive basis. Detailed development and distribution agreements will be signed country by country as they come on stream.

Agrimatco sells Pi products in Egypt and Saudi Arabia. For both Egypt and Saudi Arabia turnover has increased for the third year running.

Agrimatco is an established company in the Middle East, North Africa, Eastern Europe, Russia, Central Asia, China and Vietnam. The company was founded by Khalil Miqdadi in 1936, is currently operating in of 50 countries and has a team of over 1,300 employees. Agrimatco supplies all of the agricultural requirements of farmers, including; seeds, crop protection products, fertilizers, sprayers, farming tools and equipments, machinery and veterinary products, together with a specialised team of over 500 agronomists that consult daily with farmers and give advice on product application, use and after sales service.

Crop Nutrients agreement with Cebeco

Pi signed a distribution and evaluation agreement with Cebeco Meststoffen BV (Cebeco) covering the Company's InCa, PiNT Ca, PiNT K and Alethea K products.

The Agreement grants Cebeco exclusive distribution rights for certain market segments (excluding golf courses and home and garden) in Holland, Belgium and Luxemburg. The agreement also gives Cebeco non-exclusive evaluation rights for Germany.

This agreement is a result of a significant field trial development programme undertaken by Cebeco over a 24 month period. Cebeco have conducted more than 40 research standard field trials at independent centres in the Netherlands and Germany on various crops including potatoes, sugar beet, onions, carrots, apples and cherries. In addition to these official independent trials, Cebeco has conducted numerous demonstration trials with growers.

During the early part of the field trial programme, Cebeco focused on the fruit and vegetable market but more recently they have placed increased importance on field trials of potatoes. With more than 470,000 hectares of potato crops in the Benelux countries and Germany, the Board believes that the potential for Pi's products is promising. The first batch of potato field trials conducted in 2010 have demonstrated encouraging efficacy results and the trial programme for 2011 will cover high value crops, including potatoes, sugar beet and grapes. There are currently over 50 research standard trials planned by Pi and Cebeco as part of their joint development programme.

Dutch agriculture and horticulture is one of the most technically advanced in the world. Farmers are highly skilled, the cultivation methods are cutting edge and average yields are amongst the highest in the world. These factors combined with open international trade structures make Dutch agriculture a portal to the rest of the world. Proven innovations in Holland are often adopted by farmers worldwide.

Improving revenues

Total revenue for the year at £1,783,525 is a 26% increase on the £1,410,711 from 2010. This year's revenue was entirely based on crop nutrient products, a like for like comparison, sees crop nutrient revenues increase by 96% from £910,711 to £1,783,525.

In Northern Europe the Company has experienced revenue growth for three consecutive years from Holland and the UK. These revenues are predominantly based on InCa and are a result of a significant number of field trials. Dutch sales have demonstrated an increase of 13 times those achieved in the previous financial years. Validation through repeat sales in this important market will carry weight with growers and distributors around the world. Last year the Company reported poor performance in France, as a result of which Pi has taken positive steps to remedy the situation. We are currently engaged in discussions with a major distributor, and field trial and the Board anticipates that commercial progress will be made during the current year is anticipated.

Southern Europe, particularly Spain, demonstrated improvement on the 2010 revenues, however these revenues were significantly below expectations and coupled with the ongoing financial situation in Spain has created a continuing commercial challenge for Pi. The Company took the decision in April 2011 that it could no longer support its Spanish operations with dedicated sales staff. Sales continue through local distribution.

The USA revenue was disappointing, the levels achieved during the year were equal to 2009 levels and half those experienced during 2010. Three reasons contributed to this, the lack of support from Pi's distributor, the weather conditions in Florida at the start of the season and the lack of crop and geographical spread being the other. During 2011/12 season Pi is undertaking a significant field trial programme extending the number of crops and the number of States. This programme includes potatoes where there are 423,000 hectares in the USA and 151,000 in Canada. The Company anticipates commercial progress this current financial year. Pi has negotiated a distribution agreement for Canada with the distributor Engage and has already received first orders.

In the Middle East, like Holland and the UK, Egypt and Saudi Arabia have demonstrated revenue growth for three consecutive years. This growth is attributed to the close working relationship between Agrimatco and the Pi office in Jordan.

In Africa the Company's distributor in Kenya has demonstrated excellent commercial progress.

Research & Development

BugOil®

 BugOil® remains in the regulatory process in the two major jurisdictions of the USA and Europe (UK lead country). Both the UK and USA dossiers have been submitted by the company (the UK dossier in 2008 and the USA dossier in 2009).

In December 2010 we reported that the UK and US regulatory authorities had requested additional studies. These were duly completed during December 2010. During November 2010, the UK authorities conducted their first official review of the dossier and concluded with a demand for further studies. These are focussed on the chemistry of the natural products in the product and can be completed relatively quickly. We anticipate a further round of discussions with the authorities in the third quarter of the current year.

The additional studies requested by the US authorities were completed in December 2010. Having initially informed Plant Impact that due to unprecedented workloads their review of the dossiers will be delayed until the first half of 2012, this has now been agreed for October 2011.

Crop Nutrient Field Trials

The Board considers that field trial development and progression is a fundamental prerequisite to commercial development and as such, Pi continues to invest significant time and resource to field trials on key crops. Increasingly the Company is investing in research standard trials which can produce robust quantitative and qualitative data sets. The data sets will be of research standard to demonstrate to significant partners the technical and commercial efficacy of Pi products.

The Company and its partners have now undertaken field trials in over 40 countries and 80 crops/species with the focus on InCa and PiNT. Pi's horticulture field trials continue, however over the previous 12 months the Company has seen a breakthrough in arable crop field trial development. Initially this has focused on InCa for potatoes and increasingly we are testing on more arable crops.

Potatoes

Potato field trials have been, or are being, conducted in 20 countries. These include important regions such as Holland, Germany, France, UK, USA and China. These 20 counties have in total 9.3 million ha of potatoes and represent 55% of the world production. To date the average yield increase with InCa is 12% and we are also seeing improvements in terms of the tuber quality. Commercially the Company has experienced improvement in Northern Europe and will use this success to pursue potato crop development in further countries.

Soybean

In August 2010, the Company announced a field trial development programme with Syngenta in Brazil for certain arable crops; soybean, maize, cotton and coffee. Brazilian farmers grow approximately 21 million hectares of soybean, 14 million hectares of maize, 2 million hectares of coffee bean and 1 million hectares of cotton in 2008. Therefore, the Company considers the Brazilian agricultural market to be a major opportunity for it.

The Company has also commissioned independent soybean trials in Brazil including with EMBRAPA. Further trials have been commissioned in 2011 with Universities and consultants in various US states. The Company considers that this significantly expands its market potential.

US Department of Agriculture Agreement

Independent research carried out by the US Department of Agriculture ("USDA") and PennState University was reported at the World Soil Science Congress in Australia on 4 August 2010. These results have since been validated in two further trials. The results confirm the results from the first experiment and support the use of Pi's unique nitrogen fertiliser technology (PiNT) on turf grass.

The trials show that PiNT technology:

·; uses 25% less nitrogen than competing technologies;

·; allows crops to retain nitrogen for longer

·; improves turf quality and colour; and

·; reduces nitrogen leaching into watercourses.

The Board believes that home and gardens, golf courses and outfield turf management represent major potential markets for PiNT, which helps turf grass retain nitrogen for longer. In addition improved nitrogen retention leads to reduced nitrate run-off and pollution of waterways and coastal regions which in turn has environmental benefits.

Lancaster University - Alethea™

Alethea is seen as an important pipeline technology and consequently is a focus in terms of the R&D pipeline. The initial work has been on salinity where Alethea has been shown to offer significant protection. This is a major problem for agriculture and globally around 10 million ha are affected annually. The growth and yield of crops is reduced under saline solutions, however, when pre-treated with Alethea the reductions in photosynthesis and growth have been greatly reduced. Experiments are also looking at UV stress in association with the Universities of Massey and Lincoln in New Zealand.

Pi is also involved in a Biotechnology and Biological Sciences Research Council Case studentship with Lancaster University. This is again looking at Alethea, but the focus of this work is the control of reactive oxygen species ("ROS"). ROS are an unavoidable by-product of basic metabolic processes which are normally kept in balance by antioxidants. However, under stress the ROS can build up and have a detrimental effect on crops. In these experiments the active ingredient within paraquat weed killer is being used as a model system for inducing ROS. The effect of Alethea has been remarkable in greatly reducing the damage as a result of ROS in a number of crop species. Where plants are pretreated with Alethea there is often little or no damage at a paraquat concentration that is sufficient to cause substantial damage in plants pre-sprayed only with water.

Following the progress made this year, the recent ALS subscription agreement and the growing distribution network, Pi is well positioned to continue to improve crop nutrient sales and attract partners.

Peter BlezardChief Executive Officer1 July 2011Group Income Statement

The Group has no other comprehensive income or expenses. Accordingly the total comprehensive loss for the period is equal to the loss for the period, and no separate "Group Statement of Comprehensive Income" has been shown.

All revenue and costs originate from continuing activities.

Group Statement of Changes in Equity

For the year ended 31 March 2011

Other comprehensive income recognised directly to equity amounts to £nil (2009: £nil).

Other reserve

The other reserve comprises of the fair value of share based payments granted in accordance with IFRS 2.

Merger reserve

The merger reserve arose on the acquisition of PI Bioscience Limited which was accounted for under UK GAAP. This business combination took place prior to 1 April 2006, the Group's date of transition to IFRS and as such the Group has elected not to apply IFRS 3 "Business Combinations".

Group Statement of Financial PositionAs at 31 March 2011

Group Cash Flow StatementFor the year ended 31 March 2011

Notes to the preliminary results

1. Basis of preparation

While the financial information included in this preliminary announcement has been computed in accordance with International Financial Reporting Standards ("IFRS"), this announcement does not itself contain sufficient information to comply with IFRS. The accounting policies used in preparation of this preliminary announcement have remained unchanged from those set out in the Group's 2010 annual report. They are also consistent with those in the full financial statements which have yet to be published. The preliminary results for the year ended 31 March 2011 were approved by the board of directors on 1 July 2011.

The financial information set out in this preliminary announcement does not constitute the Group's financial statement for the years ended 31 March 2011 and 2010. The financial information for the year ended 31 March 2010 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified and did not contain a statement under s498(2) or (3) of the Companies Act 2006. The statutory accounts for the year ended 31 March 2011 will be delivered to the Registrar of Companies following the Company's annual general meeting.

Going concern

The Group has demonstrated its capability to increase revenues and associated margins over a three year period. It has also demonstrated its capability in securing contractual arrangements with certain economic partners, which increase the probability of improving revenues. The Group also has the operational cost and working capital flexibility to manage its financial resources in line with the operating environment.

The Group's existing financial resources together with current contractual arrangements in different geographical areas provide a sound platform for launching the Group's products and generating future revenues. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully despite the current uncertain economic outlook.

The Group has undertaken a review of forecasts and projections, which have been prepared for the period to 30 June 2012, including sensitivity analysis and taking account of reasonably possible changes in sales performance. The sensitivity analysis undertaken included a number of scenarios incorporating uncertainties surrounding achieving forecast product revenues, discounting of BugOil agreement milestone payments and a review of the ability of the Group to manage expenditure to meet working capital and funding requirements. This review supports the Directors conclusion that the Group should be able to operate within the level of its current cash resources.

The Group's financial resource procedures are managed in a way which identify potential risks, are forward looking and provide sufficient time to respond to these risks whilst maintaining a going concern status. The Group's financial resource management includes monthly reporting to the Board. This reporting includes up to date cash resource visibility and forward looking projections of the Group's financial position.

After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Group Financial Statements.

Critical accounting judgements in applying accounting policies

In the application of the Group's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical judgements, apart from those involving estimations, that the Directors have made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Research and development activities

Management have reviewed the Group's research and development activities and have made judgements on the amount of development expenditure it is appropriate to capitalise. The criteria which management have to make judgements about are set out below, in particular that certain products are technically and commercially viable.Research expenditure is charged to the income statement in the period in which it is incurred. Development costs incurred are capitalised when all the following conditions are satisfied:

·; completion of the intangible asset is technically feasible so that it will be available for use or sale, considering its commercial and technological feasibility;

·; the group intends to complete the intangible asset and use or sell it;

·; the group has the ability to use or sell the intangible asset;

·; the intangible asset will generate probable future economic benefits;

·; there are adequate technical, financial and other resources to complete the development and to use or sell the intangible asset, and

·; the expenditure attributable to the intangible asset during its development can be measured reliably.

Regulatory and other uncertainties generally mean that such criteria are not met; in particular, the Group will not capitalise the research and development costs attributable to a product development programme prior to grant of a marketing license for the product or until there is evidence of probable future economic benefits. Development costs not meeting the criteria for capitalisation are expensed as incurred.

Key sources of estimation uncertainty

Impairment of goodwill

Determining whether goodwill is impaired requires an estimation of the value in use attributable to goodwill. The value in use calculation requires the Directors' to estimate the future cash flows expected to arise and a suitable discount rate in order to the calculate present value.

2. Income tax credit

Unrelieved tax losses of £6,354,000 (2010: £5,383,000) remain available to offset against future taxable trading profits.No provision has been made for deferred income tax on losses carried forward as they will only be available for offset when the Group makes taxable profits arising from the same trade. As the availability of future of profits is uncertain, it has been assumed that the losses will not be recoverable in the foreseeable future.

3. Loss per ordinary share

The loss per ordinary share is based on the loss after taxation of £1,628,838 (2010: £1,417,075) and 45,758,109 (2010: 31,405,104) ordinary shares of 1p each, being the weighted average number of shares in issue during the period.

The share options in issue are anti-dilutive in respect of the basic loss per share calculation and have

therefore not been included.

4. Availability of the financial statements

Copies of the full statutory financial statements will be available from the registered office from 26 August 2011 and will also be available from the Group's website at www.plantimpact.com in accordance with AIM Rule 20.

5. Annual General Meeting

The Annual General Meeting will be held at 9am on 26 August 2011 at the Company's registered office, 12 South Preston Office Village, Cuerden Way, Bamber Bridge, Preston, PR5 6BL.For further information please visit: www.plantimpact.com