Issue of Equity

Lawrence PLC
20 July 2007


21 July 2007


                                  Lawrence plc
                         ('Lawrence' or the 'Company')

        Placing of 2,718,500 new ordinary shares at 200 pence per share
                             to raise £5.44 million

The Board of Lawrence is pleased to announce that Charles Stanley Securities and
Nomura Code Securities have, on behalf of the Company, completed a conditional
placing (the 'Placing') of 2,718,500 new Ordinary Shares of 5p each (the
'Placing Shares') at a price of 200 pence per Placing Share with institutional
and other investors to raise approximately £5.44 million.  The Placing is
conditional, inter alia, upon the Company obtaining shareholder approval of
certain resolutions at an extraordinary general meeting to be held on 14 August
2007 (the 'EGM').


Background to and details of the Placing

The proceeds of the Placing will be applied to accelerate the development of the
Company's Eco subsidiary which is now well established and represents the core
activity within Lawrence.  Eco was formed in 1993 as a joint venture to develop
and market pharmaceutical products principally for the treatment of medical
conditions in food producing animals worldwide.

Eco has to date successfully obtained marketing authorisations (also known as
drug registrations) for in excess of 600 different treatments in over 70
countries.  Registration is a pre requisite in every country before sales can
begin and the veterinarian bodies that grant these registrations have become
increasingly stringent in their testing regimes to ensure the safety of the
treatments as they affect not only the animals but also consumers and the
environment.  These ever rising standards ensure the safety of the food that we
eat but also have led to delays in gaining registrations and at increasing
costs.

Lawrence has invested some £20 million on applying for and obtaining marketing
authorisations, as well as making applications for approximately 100 further
approvals which have been submitted and are commencing trial work.  The
Directors believe that this is a huge achievement for a relatively small company
such as Lawrence, which has funded this work from its own resources.

An opportunity now exists to accelerate the registration timetable, which will
allow Eco to achieve more authorisations in a shorter time and also carry out
multiple trial work (as opposed to single trials which, due to the very nature
of sick animals, can produce inconclusive results).  The Board has also
identified various investment opportunities within the pet medication market
which it believes will enable the Company to exploit its knowledge and expertise
of animal pharmaceutical products generating significant opportunities within
this sector.

The Company will apply up to £2.2 million of the funds raised for progressing
global registration of its products for three particular animal applications in
the food production market.  In the pet medication sector, the Board has
identified a further three products, in a market with estimated total annual
sales of £1.5 billion, and which the Board estimates will require up to £1.0
million for registration costs to gain the necessary marketing authorisations.
In addition, the Board will allocate a further £2.0 million towards completing
the pipeline of work that the Company has already begun in its farmed animal
products business, and for working capital.

Details of the Placing

Charles Stanley and Nomura Code have agreed to use their reasonable endeavours
to place 2,718,500 Placing Shares on behalf of the Company, representing a total
of 8.0 per cent. of the total issued share capital of the Company following the
Placing, with institutional and other investors.  The Placing is conditional,
inter alia, upon Admission.

The Placing is expected to raise approximately £5.44 million, before expenses. 
Application will be made for the Placing Shares to be admitted to trading on AIM
and it is anticipated that Admission will become effective and that dealings
will commence on 15 August 2007.

It is expected that the Placing Shares will be delivered into CREST on 15 August
2007 and that share certificates for the Placing Shares to be held in
certificated form will be despatched by 28 August 2007.

The Placing is not a rights issue or open offer and Placing Shares will not be
offered generally to Shareholders, whether on a pre-emptive basis or otherwise.
A Circular containing details of the Placing and containing notice of the EGM
has been sent to shareholders today.

Peter Lawrence, a Director of the Company, and his family have agreed to
subscribe for 500,000 Placing Shares, pursuant to the Placing.  Following
Admission they will own 9,500,000 Lawrence ordinary shares representing
approximately 28.0 per cent. of the enlarged issued share capital of the
Company.

The Directors have irrevocably undertaken to vote in favour of the resolutions
to be proposed at the EGM in respect of an aggregate number of 9,060,000
Ordinary Shares representing approximately 29.1 per cent. of the issued share
capital of the Company.

The participation by Mr Lawrence is regarded as a related party transaction for
the purposes of the AIM Rules.  In the opinion of the Directors, having
consulted with Charles Stanley, the Company's Nominated Adviser, the
subscription by Mr Lawrence is fair and reasonable insofar as Shareholders are
concerned.

Summary of results for 12 months to 31 March 2007

The Company has today released its preliminary announcement of results for the
12 months to 31 March 2007.  Turnover for the year was £18.3 million (2006:
£20.3 million). Comparison with the 2006 figure is distorted following the sale
of the Agil natural animal feed additive business in November 2006, and which
made a contribution for eight months in the year under review.  In addition, the
US dollar weakened by 8.5 per cent against sterling during the year and as the
majority of sales are invoiced in dollars, this had a negative translational
impact on the turnover.

Profit before interest, tax, depreciation, amortisation and impairment for the
year to 31 March 2007 was £5.8 million (2006: £3.4 million) and includes
discontinued activities and the profit on the Agil disposal. Amortisation rose
during the year from £2.2 million to £2.6 million reflecting the high level of
investment in new drug registrations. The amortisation figure reflects the
Company's investment in the future of the Eco business. Amortisation is a
non-cash item and has no effect on our underlying trading performance.

Profit before tax for the year ended 31 March 2007 was £2.4 million, which
included discontinued activities and the profit on the Agil disposal (2006: loss
£66,741), while the earnings per share were 5.77p (2006: loss 0.135p).

Expected Timetable of Principal Events:

Publication of the Circular to Shareholders                                                  21 July 2007
Latest time and date for receipt of completed Forms                                11.00am 12 August 2007
of Proxy for the EGM
Extraordinary General Meeting                                                   11.00am on 14 August 2007
Dealings in new ordinary shares expected to commence                            8.00 am on 15 August 2007
on AIM


For Further Information:

Lawrence plc                               020 8336 6190
Peter Lawrence

Nominated Adviser and Broker
Charles Stanley Securities                 020 7149 6000
Philip Davies
Russell Cook

Joint Broker
Nomura Code Securities Limited             020 7776 1200
Chris Collins



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