Sorbic International Regulatory News (SORB)

Sorbic International plc

("Sorbic International" or the "Company")

£1.6 million fundraising

Sorbic International plc (AIM:SORB), the third largest sorbates producer in China, is pleased to announce that it has conditionally raised approximately £1.6 million (before expenses) through the issue of £0.56 million of convertible loan notes ( the "B Loan Notes") and 5,175,000 ordinary shares of 6 pence each ("Placing Shares") which have been issued at 20 pence each ("Placing").

The proceeds of the fundraise are to be utilised to fund construction of the Company's new production facility in Ulanqab City, Inner Mongolia, work on which commenced in April 2010. The new site in Ulanqab City will double Sorbic International's existing manufacturing capacity. The factory building is largely complete and construction remains on track in terms of timeline. The project is expected to be completed by late 2011.

In August 2010, the Company announced a £3.5 million loan note issue (the "A Loan Notes"). Included in this total was £1.6 million in respect of which Hermes Holdings Ltd ("Hermes"), based in Seoul, had entered into a legally binding agreement. Hermes is due to pay the Company directly but requires regulatory approval to move the funds out of Korea. As announced on 14 January 2011, the Company is in discussion with Hermes to resolve the non-payment in relation to the A Loan Notes. As a result of the ongoing discussions, Hermes has not yet been issued with the A Loan Notes, and is therefore not an A Loan Note holder and will not be involved in the proposed listing of the A and B Loan Notes on PLUS (as described below).

Key Terms of the B Loan Notes

The B Loan Notes are repayable on 26 February 2013, the same repayment date for the A Loan Notes. The B Loan Notes rank pari passu with the A Loan Notes issued in August 2010 and attract an interest rate of 10% per annum, payable half yearly. The B Loan Notes are convertible at a rate of 26 pence per ordinary share and, in the event of early redemption, the noteholder is entitled to either a 10% premium or warrant coverage at 26 pence per ordinary share with no premium payable. The terms of the A Loan Notes have been amended to reflect the same conversion terms as the B Loan Notes.

It remains the Company's intention to apply for the A and B Loan Notes to be quoted on PLUS Markets. This application will be made following publication of the report and accounts of Sorbic International for the year ended 30 September 2010. The report and accounts are expected to be published in March 2011.

The Placing is conditional on, inter alia, admission of the Placing Shares to trading on AIM ("Admission"). It is expected that Admission will occur in two tranches, with 3,575,000 Placing Shares being admitted at 8.00 a.m. on 2 March 2011 and 1,600,000 being admitted at 8.00 a.m. on 11 March 2011. Following Admission of all the Placing Shares, the Company will have 38,563,500 ordinary shares of 6 pence each in issue.

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Notes to Editors: www.sorbicinternational.com

About Sorbic International plc

Sorbic International's principal activity is the production and sale of the food preservatives Sorbic Acid and Potassium Sorbate from its base in Linyi City, Shandong Province, Peoples Republic of China. Approximately half of Sorbic International's production is sold to overseas markets, across 46 countries and half into the Chinese domestic market.

Sorbic Acid is a naturally occurring organic compound that is used in all kinds of foods for its anti-decomposition and anti-fungus function and also in grains, medicines, cosmetics, toothpaste, tobacco, animal feed, latex, paper-manufacturing and pesticides. Potassium Sorbate is used to inhibit moulds and yeasts in many foods, such as cheese, wine, yogurt, dried meat, baked goods, cosmetics and pharmaceuticals.