SOURCE: BioProgress PLC

November 02, 2005 07:16 ET

BioProgress PLC announces Grant of Executive and Employee Options

Cambridgeshire -- (MARKET WIRE) -- November 2, 2005 --

BioProgress plc ("BioProgress" or the "Company")

Grant of Executive and Employee Options

The Board of BioProgress plc (AIM: BPRG; NASDAQ: BPRG), adopted two new share option schemes on 1 November 2005, the BioProgress plc Employee Share Option Scheme (the "Employee Option Scheme") and the Executive Share Option Scheme 2005 (the "Executive Option Scheme"), and on the same day granted options to subscribe for 11,000,000 Ordinary Shares of 0.01 pence each in the Company as set out below to the following directors in respect of the Executive Option Scheme.

The Executive Option Scheme comprises certain options (totalling 3,500,000 options) exercisable subject to performance criteria which will require the Company's share price to be no less than 87.3 pence in respect of three out of five consecutive days following the date of grant ('Performance Options'); and certain other options (totalling 7,500,000 options) exercisable in two tranches, an initial 50% with effect from 31 March 2006 and the remaining 50% with effect from 30 September 2006 ('Non-Performance Options'). The Non-Performance Options reflect the retirement of an equity issuance scheme which was not taken up by the directors.

These options were granted at an exercise price of 29.1 pence per share.

Name                 No. of Performance    No. of Non-performance
                     Options               Options

Dan Farrow           1,500,000             3,500,000

Richard Trevillion   2,000,000             4,000,000

Mr Farrow now holds a total of 5,000,000 options in the Company. Mr Trevillion now holds a total of 6,000,000 options in the Company.

The Company will also be making shares available for the grant of options to its key employees; the Employee Share Option Scheme. These options will be awarded on an individual achievement basis throughout the Company and used to incentivise and retain individuals who have and will contribute to the success of the business going forward.

                                                         2 November 2005

For further details please contact:

BioProgress plc                                             01354 655674
Richard Trevillion, Chief Executive Officer
Dan Farrow, Finance Director

College Hill                                               020 7457 2020
Corinna Dorward/ Adrian Duffield

Forward-Looking Information

The Ordinary Shares of BioProgress plc are registered under the US Securities and Exchange Act of 1934. To the extent that this announcement contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, this paragraph applies. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained in the forward-looking statements. The forward-looking statements in this release include statements addressing future financial and operating results and the timing and benefits of the reorganisation. Detailed information about factors pertinent to the business of the company that could cause actual results to differ is set forth in the Company's filings with the Securities and Exchange Commission. The Company is under no obligation to (and expressly disclaim any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. This announcement is for information only and does not constitute an offer or invitation to acquire or dispose of any securities or investment advice. The distribution of the announcement and/or issue of securities in certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes are required to inform themselves about and to observe such restrictions.

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