Issue of Equity

ECO Animal Health plc
                             ("ECO or the "Company")

                         Issue of Equity and Acquisition

The Company, is pleased to announce that it has raised £6 million gross of
expenses by way of a placing (the "Placing") and  admission of 4,258,314
ordinary shares of 5p ("Placing Shares") each in the capital of the Company at
140 pence per share.

The  proceeds of the Placing will be used partly to fund the acquisition of  the
outstanding  80% of an associate company in Japan. The Board believes  that  the
acquisition  will strengthen ECO's position in the Japanese market by  providing
both  greater control over the supply chain and an opportunity to grow sales  in
the  country  where  Aivlosin®,  its patented macrolide  antibiotic,  was  first
launched. The Board expects the acquisition to be completed within the next  few
weeks and further details will be announced at that time.

Part  of  the  proceeds of the Placing will also be used to fund  the  Aivlosin®
launch and the sales and marketing effort in the USA. ECO expects to receive its
first marketing authorisation for Aivlosin® from the FDA next year.

In  addition,  some  of  the proceeds will be used to finance  a  further  joint
venture  in  China  with  the manufacturer of Aivlosin®'s active  pharmaceutical
ingredient. This joint venture should be operational by the end of 2010 and will
enable ECO to deliver management and cost saving technology inputs.

Application has been made to the London Stock Exchange for the Placing Shares to
be  admitted to trading on AIM and it is expected that admission will  occur  at
8.00  a.m. on 24 December 2009. The Placing Shares will, when issued, rank  pari
passu in all respects with the Company's existing ordinary shares.

After  admission  of  the  Placing Shares the figure  of    51,612,768   million
ordinary  shares  may be used by shareholders in the Company as the  denominator
for the calculations by which they will determine if they are required to notify
their  interest in, or a change in their interest in, the share capital  of  the
Company under the FSA's Disclosure and Transparency Rules.

Contacts:
ECO Animal Health Group plc                  Peter Lawrence 020 336 6190

Spiro Financial                         Anthony Spiro       020 8336 6196

Cenkos  Securities plc                             Stephen Keys        020  7397
8926
(Nominated  Adviser)                                      Liz Bowman         020
7397 8928

ECO  Animal  Health Group plc is a leader in the development,  registration  and
marketing of pharmaceutical products for animals. Our products for these  global
growth markets promote well-being. Our financial goals are achieved through  the
careful  and  responsible  application of science  to  generate  value  for  our
shareholders.