JV agreement with the University of Manchester

17 March 2016

OptiBiotix Health plc

("OptiBiotix" or the "Company")

Joint venture agreement with the University of Manchester

Technology Platform Extension - Skin microbiome

OptiBiotix Health plc (AIM: OPTI), a life sciences business developing products to tackle obesity, high cholesterol and diabetes, announces that it has acquired the exclusive rights to intellectual property developed by The University of Manchester in skin health, creating a majority owned joint venture ('JV') which will be called SkinBiotix Limited.

Under the terms of the agreement, OptiBiotix have invested £260K into the JV and will own 52% of SkinBiotix Limited, with the remaining 48% owned by the University of Manchester and key researchers.

The University of Manchester has an international reputation for its research into skin diseases and is one of Europe's leading dermatology clinical trial units. This agreement brings together the University's intellectual property and research expertise in skin health with OptiBiotix's microbiome modulating expertise and commercial focus. This is expected to create new product opportunities in multi-billion dollar global markets including:-

· Skincare ($121bn)

· Health Care Acquired Infections ($82bn)

· Eczema ($3.8bn)

· Psoriasis ($7.4bn)

· Wound care ($18.3bn)

OptiBiotix has a strategy to partner with multiple organisations and this JV agreement accelerates OptiBiotix's plan of extending its Optiscreen® and OptiBiotix® technology platforms into new application areas. The Company believes modulating the skin microbiome to treat chronic skin health problems provides significant growth opportunities and the potential for new partnering and product opportunities.

Stephen O'Hara, OptiBiotix's Chief Executive Officer, commented: "We are pleased to announce this joint venture and acquisition of skin health intellectual property from the University of Manchester. We believe this deal accelerates OptiBiotix's strategic intent to grow the Company by extending our platform technologies into new application areas where there is a large global need. This division is expected to create new partner and product opportunities, make a significant contribution to the group over the coming years, and help us to build a strong and sustainable business for our shareholders."

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About OptiBiotix Health PLC - www.optibiotix.com

OptiBiotix was formed in March 2012 to develop compounds which modify the human microbiome - the collective genome of the microbes in the body - to prevent and manage human disease.

The aim of OptiBiotix is to discover and develop microbial strains, compounds and formulations, which modulate the human microbiome and can be used as food ingredients and supplements or active compounds for the prevention and management of human diseases, examples of which include obesity, cholesterol and lipid distribution, diabetes, and skin health.

OptiBiotix has established a pipeline of microbiome modulators that can impact on lipid and cholesterol management, energy harvest, appetite suppression, and skin health. The development pipeline is fuelled by its proprietary OptiScreen® and OptiBiotic® platform technologies designed to identify metabolic pathways and compounds that impact on human physiology and bring potential health benefits. These platforms are applicable across a wider range of other human diseases.

About Manchester University: Centre for Dermatological Research

Founded in 1993, the Centre for Dermatological Research at the University of Manchester is one of the leading dermatology research groups in the world. The group has acknowledged expertise in psoriasis, photobiology, skin ageing, hair biology and more recently, in the manipulation of the microbiome for skin health. The research carried out by the centre covers the full spectrum of translation and impact along the discovery-care continuum from basic science through to direct patient care.

The centre has a particular focus on the interaction of external stressors and endogenous defences, both in the maintenance of skin cell health, and in the mechanisms and management of skin disorders.