Tyratech Regulatory News (TYR)

2 December 2014

TyraTech, Inc.

("TyraTech" or the "Company")

Trading Update

TyraTech, Inc. (AIM: TYR and TYRU), a life sciences company focusing on nature-derived insect and parasite control products, provides the following trading update.

Highlights

· Vamousse® treatment estimated as the second best-selling head lice brand in Walmart after six months of trading

· Expanded retail network in USA and UK

· FY2014 revenue estimated at $4.8m (FY2013 $1.4m)

· FY2014 revenue from product sales estimated at $2.8m (FY2013: $0.0m)

· FY2014 net loss before income taxes is estimated to be $4.8m (FY2013 $4.9m) following investment into UK product launch

· Ten products launched in 2014

· 21 granted patents and 50 pending patent applications

In line with the Company's planned expansion strategy, TyraTech launched ten new products in 2014 in the USA and entered the UK market for the first time. In particular, its Vamousse® brand, mousse treatment, benefited from a very successful launch in all 4,100 Walmart stores in the USA, estimated to become, after only six months in the market, the second best-selling head lice brand at the retailer.

Building on this positive momentum, the Company has continuously sought to further expand its distribution network in the USA as well as in the UK. In the UK, Superdrug has now decided to carry Vamousse products in all of its stores (over 800). In addition to recent product listings with Boots, Sainsbury's and Tesco, the Company has added further UK distribution through Rowlands (over 400 stores) and 1,800 distribution points in independent pharmacies. In the USA, following the successful launch at Walmart, advanced discussions are being held with major pharmacy retail chains as well as with grocery chains, in order to significantly expand distribution further in 2015.

Based on the successful launch of its products in the US and UK markets, the Directors believe that the Company will generate $2.8 million in product sales in 2014 (FY2013: $0.0m) and total revenues of $4.8 million. Whilst representing significant progress, this estimate is below market expectations of $6m. The shortfall in anticipated 2014 revenues is due in large part to a decision by certain new retailers in the USA to delay the review of the Vamousse treatment product from the end of 2014 until the early part of 2015 in order to better conform to their internal line review schedule and ensure maximum impact for the launch.

In addition to these delays, there has also been a slowdown in the commercial roll-out of the Company's NatunexTM products resulting from Eli Lilly's acquisition of Novartis Animal Health which has further affected anticipated 2014 revenues. Despite the late launch in the US the Guardian brand of personal insect repellents has been sampling positively on Amazon.com and is expected to benefit from greater distribution in the USA in 2015 and a possible UK launch.

The Directors believe that the net loss at the end of 2014 will be approximately $4.8 million (2013: $4.9 million). This is greater than originally anticipated for the full year, predominantly as a result of increased costs in the second half of 2014 to accelerate the successful launch of Vamousse® in the UK, and also due to the aforementioned delay to product revenues in the USA. Cash and cash equivalents are expected to be in the region of $2.6 million at year end (2013: $0.9 million). The Company is confident that it has sufficient cash resources to fully fund its commercial plans for 2015 across all of its target territories, being the UK, North America and Europe.

As we approach the end of 2014, TyraTech has successfully entered the markets of personal care and animal healthcare, both of which are characterised by steady growth drivers. The Company has built the capabilities and business model to capitalise on these market opportunities and has a clear focus on monetisation and creating value for its shareholders. The Directors firmly believe that the accelerated investment made during 2014 has seen the foundations laid for strong growth in 2015 and beyond. Additionally, TyraTech has a strong pipeline of development products which will enrich the range of offering under the Vamousse and Guardian range and will expand the Company's business in animal health.

Chief Executive, Bruno Jactel commented: "TyraTech has introduced ten new products to the market in 2014 in both the USA and the UK, securing listings and partner relationships with a number of well-known retailers and generating substantial revenue growth. In addition, the Company has a strong and growing pipeline of new products. These achievements have been made possible by the continuous support of our employees and shareholders, and now our customers. We firmly believe the Company has strong growth potential and that the foundations are in place to realise significant future value."

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