Sorbic International Regulatory News (SORB)

Sorbic International plc

("Sorbic" or the "Company")

AGM Statement

Sorbic International plc (AIM:SORB), the third largest sorbates producer in China, issues the following update ahead of its Annual General Meeting ("AGM") which will be held at 10:30 a.m. today at the offices of Stephenson Harwood LLP, 1 Finsbury Circus, London, EC2M 7SH.

The Company is pleased to announce that it has signed a compensation agreement in relation to the Company's manufacturing facility in Ulanqab City, Inner Mongolia totaling approximately £5 million.

As previously announced, the Company has been in discussions with local authorities in Ulanqab City regarding the effects on the Company of the proposed zone reclassification and to finalise a compensation plan offered by the Ulanqab authorities. The Board is pleased to announce that negotiations have now been concluded and the key terms of the agreement are outlined below:

·; The Company will receive compensation for relocation of infrastructure already built (including disassembly and reassembly of equipment and inflation), as assessed by an independent valuer. This is expected to be in the region of RMB25 million (£2.65 million) and includes inflation on the rebuilding costs.

·; Sorbic will also receive compensation for one year's interest for equipment capital commitment based on the capital expenditure incurred (including inflation). This is expected to be approximately RMB3 million (£0.32 million).

·; Sorbic will be reimbursed in full for the land (400mu or 64 acres) that was first purchased for RMB 16.3 million (£1.73 million)

·; There will be no land cost to the Company for the new 200mu (32 acres) of land which will benefit the Company by RMB5 million to RMB8 million (£0.53 million to £0.85 million), depending on the final valuation of the land.

·; The Ulanqab authorities have committed to assist the Company in securing a loan facility of RMB50 million (£5.3 million). These additional funds will be used to complete the rebuild of the new factory.

·; The Company will be reimbursed any additional costs incurred from equipment manufacturers.

·; The Ulanqab authorities have agreed to the continuation of the industrial park's original agreement in respect of tax reductions, power costs and other direct costs.

Following signing of the agreement, the Company expects to receive the first tranche of funds (RMB 16.3 million gross) by the end of May 2013.

John Mclean, Non-Executive Chairman of the Company, said: "The Board is very pleased to have reached this agreement which allows the Company to move forward having secured a fair package that not only covers the forthcoming expenditure for the new site, but also compensation for the costs incurred to date. In particular, the land which is being given to the Company at no cost is significant for Sorbic as we estimate it equates to a benefit of over £0.5 million.

"Sorbic can now advance its new facility in Ulanqab and the Board looks forward to updating shareholders on progress in due course."

- Ends -

Media enquiries:

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.