Re Agreement

Phytopharm PLC
24 September 2007


Company Contact:                                U.K. Investor Relations Contact:
Phytopharm plc                                  FD
Dr Daryl Rees CEO                               David Yates
Piers Morgan CFO                                Ben Atwell
[phone]                                [phone]



   Phytopharm initiates Stage 3 activities of Joint Development Agreement for
                          Hoodia extract with Unilever


Third stage extends to consumer studies


GODMANCHESTER, Cambridgeshire, U.K. (24 September 2007) - Phytopharm plc (LSE:
PYM) ('Phytopharm') announces today that it continues to make good progress on
its weight management product, Hoodia extract in collaboration with Unilever.
Phytopharm and Unilever have now initiated certain Stage 3 activities including
supply chain expansion and further safety studies which will lead to consumer
studies that will evaluate reductions in calorie intake as part of a weight
management programme in the general population.


Under the terms of the agreement, Phytopharm and Unilever are collaborating on a
research and development programme of safety and efficacy studies with a view to
bringing new weight management products to market. Stage 2 activities have
included successful progression of clinical safety trials, manufacturing and
plant cultivation. Phytopharm will continue to receive reimbursement of its
further development costs together with an undisclosed royalty on sales of all
products containing the extract.  Unilever is managing the agronomy programme,
undertaking manufacturing and market research activities, and supporting the
international patent programme for the products.


Phytopharm licensed the global patent rights for the extract of Hoodia, a plant
indigenous to South Africa, for incorporation into weight loss products from the
South African Council for Scientific and Industrial Research (CSIR) in 1997.


Commenting on today's announcement, Kevin Povey, R & D Programme Director,
Unilever, said:

'We are satisfied with the good progress to date.  The timing is now right to
further develop our supply chain and we look forward to advancing this product
through additional clinical and consumer studies.'


Commenting on today's announcement, Daryl Rees, Chief Executive Officer of
Phytopharm, said:

'We are delighted with the continuing progress of our collaboration with one of
the world's leading food companies. Our partnership with Unilever provides a
fully funded programme and we look forward to generating royalty income from our
partner's globally recognised brands in the near future on product launch.'


                                     -Ends-



Notes to Editors


Phytopharm plc

Phytopharm is a pharmaceutical development and functional food company whose
product leads are generated from medicinal plants.  The Company's strategy is to
develop these products through 'proof of principle' clinical testing, and then
secure partners for late stage development, sales and marketing. Laboratory,
manufacturing and clinical work is outsourced to selected specialists, operating
under expert in-house management.  This operational structure allows access to
the best external research facilities whilst maintaining low fixed overheads and
a lower development cost structure.


Dietary weight management

Obesity has reached epidemic proportions globally, with more than 1 billion
adults overweight - at least 300 million of them clinically obese - and is a
major contributor to the global burden of chronic disease and disability
(Source: World Health Organisation).


Phytopharm's weight management functional food product is based on an extract of
the succulent plant, Hoodia, which is cultivated and harvested under a
sophisticated and extensive agronomy programme.  Hoodia extract contains a novel
satiety stimulator that reduces calorie intake in overweight subjects, as
demonstrated by Phytopharm in our double-blind, placebo-controlled clinical
study, and has so far demonstrated an excellent safety and tolerability profile
in clinical and toxicity studies.  Extracts of Hoodia and the active molecules
therein are the subject of a global patenting programme, with major patents
granted in the US, UK, Europe and Japan and pending in all other major
territories.


Phytopharm and Unilever have become aware of many companies that are selling
products over the Internet and in some stores claiming to contain Hoodia and
causing weight loss.  Analysis of these products has demonstrated that the great
majority of them contain little or no Hoodia.  Phytopharm and Unilever have made
contact with the relevant authorities concerning this development and are
satisfied with the progress being made in these key discussions.


Functional Foods

Functional foods are foodstuffs that provide health or physiological benefits
above their nutritional value and have a health claim on the packaging.
Currently gut and heart health products dominate with new interest in areas of
weight control, memory and concentration, immune system function and skin
health. The global value of functional foods is estimated to be up to $65bn.
The growth potential is predicted to be 50% from 2005-2010 with an accelerating
trend for new products.


More information concerning Phytopharm's activities can be found on its web site
at

                           http://www.phytopharm.com



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