Eden Research plc
LSE : EDE

June 21, 2011 07:00 ET

AGM Statement and Business Update

                                                                                       21 June 2011
                                                                          GB0001646941/GBP/PLUS-exn

                                                 
                                         EDEN RESEARCH PLC
                                       ("Eden" or "Company")

                                 AGM Statement and Business Update

Sir  Ben  Gill, Chairman of Eden Research plc, is making the following Statement at the  Company's
AGM which is being held today in Wendens Ambo.

"Since  last  year's  AGM,  the  company has continued to broaden  its  horizons  by  becoming  an
encapsulation  technology  development company in addition to being  an  agrochemical  development
company.

This  is  an exciting development for Eden which the directors believe will maximise the value  of
the company's intellectual property and, therefore, returns to shareholders.

I  shall start, however, by updating our shareholders as to the progress of the products developed
thus far by Eden.

Just after  the 2010 AGM, Eden  entered into a licence agreement with Stockton Agrimor, an Israeli
based  agrochemicals company, for Eden's nematicide product in the Southern and  Central  American
regions.  I  can report that Stockton have undertaken a series of field trials, results  of  which
should be available in the second half of 2011.

In  June  2010,  Eden  entered into an exclusive option agreement with Certis  Europe  for  Eden's
nematode  product. Since then, both Certis and Eden have undertaken field trials on a  variety  of
nematode species in order to evaluate the potential for the products and to determine the  markets
for which Certis would like to enter into a full licensing agreement.

As  previously  announced,  Eden is in advanced negotiations with  a  number  of  other  potential
partners for licensing the right to the nematodes product in the USA and Canada.

Eden's  first product, 3AEY, a terpene based fungicide, has already been licensed to a  number  of
parties  for  a  variety  of uses throughout the World. Its primary use is  in  professional  crop
applications,  although  the product has also been licensed for use  in  other  sectors,  such  as
amateur gardening and floriculture.

The  three  constituent  active substances in 3AEY have all been subject to  the  EU  registration
process over a number of years and I would like to update you as follows.

The  three  active substance dossiers (information packages) were submitted to the  UK  regulatory
body, the Chemicals Regulation Directorate ("CRD"), for their review.

Following CRD's review, all three of Eden's active substances dossiers were then submitted to  the
European Food Safety Authority ("EFSA") for their review, which process is now underway.

Once  EFSA have completed their review process, the European Commission will vote on the inclusion
of  Eden's  active substances onto Annex I. Annex I is the list of active substances approved  for
use by the European Commission in pesticidal products.

All three of Eden?s active substances were submitted to EFSA with CRD?s recommendation for Annex I
inclusion.

Recently,  the  European  Commission  published that it has passed  a  resolution  confirming  the
completeness  of  the dossiers for the three active substances submitted by Eden, under  Directive
91/414/EEC.

Consequently, Eden has now started the process of submitting EU zonal applications for provisional
approvals which will enable the sales of products using Eden's active substances and technologies.

The  dossiers contain a significant amount of information which is useful for registration of  the
follow  on  products, such as the nematode product, which should significantly cut down  the  time
required to register those products for use in the EU.

The  dossiers  have  also been used by our partners, Lachlan Kenya, as part of their  registration
process  for 3AEY in Kenya and we have been informed by them that the process is going  well  with
Lachlan  hoping  to  start manufacturing and selling product this year. This should  lead  to  two
important milestones for Eden; the first sales of 3AEY and first on-going royalty revenues.

The  dossiers  are also being used by our European licensee, Ecostyle BV, to develop and  register
products for use in the amateur gardening market.

Essentially, Eden is looking to complete the registration of 3AEY as soon as practicable and then,
with  the  right partners, and using the vast information that we already have, register  products
with different applications, but based around the same three active substances.

We  believe that this is the  most expeditious  route to commercialisation of products based  upon
work that has already been done and costs already incurred in development of our own products.

Separate  to this, but still using the same encapsulation technology and the same business  model,
we  have  looked increasingly at how to further exploit the encapsulation technology, without  the
need for additional in-house product development.

To that end, in December 2010, Eden signed two agreements with SBM Développement SA ("SBM"), based
in  Lyon,  which granted SBM the rights to use Eden's terpene encapsulation system.  SBM  are  co-
encapsulating two of their important crop protection molecules with blends of synergistic terpenes
to  create  new  products that will exhibit a wider spectrum of activity  and  be  less  prone  to
resistance development.

Since  then, Eden has also received a number of new enquiries regarding the potential use  of  the
encapsulation system in a wider range of applications and markets all of which are being  actively
pursued by Eden.

Just  last week, Eden announced its second co-encapsulation agreement with Tagros Chemicals  India
PVT Limited, one of India's leading manufacturers and exporters of a range of agrochemicals. Using
the  encapsulation  system  will allow Tagros to create new products that  will  exhibit  a  wider
spectrum of activity, longer persistence and be less prone to resistance development.

Outside  of its primary agrochemical activities, Eden has a number of projects on-going which  may
well  bring in significant future value on their own. An example includes our activities with Teva
Animal Health ("Teva").

Teva,   a   subsidiary  of  the  largest  generic  pharmaceutical  company  in  the  world,   TEVA
Pharmaceutical, was granted an exclusive option over rights to Eden's products and technologies in
the  animal  health sector for the NAFTA (North American Free Trade Agreement) region  in  January
2010.  Since  then,  TEVA  has  been busy undertaking trials using a  large  number  of  different
combinations  of  terpene  formulations to create a range of  over-  the-  counter  animal  health
products.

In  addition,  we are making good progress in other new application areas such as head-lice,  skin
and  hair-care, domestic household applications, fragrances and food flavourings and  hope  to  be
able to make further announcements in these areas in due course.

In terms of our intellectual property, I am pleased to report that since the last AGM our nematode
patent  has  been  granted in two territories (Australia and African Regional Industrial  Property
Organization  ("ARIPO") and our master encapsulation patent has also been granted in  two  further
territories (New Zealand and Mexico), all of which serves as a useful indicator as to the validity
and  strength of our patent portfolio. Eden sees its patents as key to the success of the business
and, as such, is keen to rigorously maintain and expand its portfolio.

As you will have gathered, Eden has experienced a considerable increase in commercial activity and
industry  interest  in recent months. Much progress is being made to achieve important  commercial
milestones  for Eden and all this will provide important additional elements to Eden's  investment
case  as  and  when  we move to listing on the AIM market, as was our declared intention  at  last
year's AGM.

The  next twelve months should see the first sales of Eden's product 3AEY, first on-going  royalty
revenues, milestone payments, additional product and co-encapsulation licence agreements, European
approval  of  3AEY  and  subsequently a move to the AIM market; all of which  should  make  it  an
exciting year to come for Eden."

The Directors of Eden are responsible for the contents of this announcement.

Enquiries:

Eden Research plc                                                                01993 862761
Clive Newitt, Managing Director

St  Helens  Capital  Partners  LLP                                               020 7368 6959
Mark Anwyl

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