Contract Win

Plant Health Care PLC 30 August 2005 Embargoed until 7am 30 August 2005 Plant Health Care plc $40m contract with John Deere and Trading Update John Deere Contract Plant Health Care ('PHC' or the 'Group') is pleased to announce that, following successful completion of a pilot test programme, it has now entered into a 10 year contract with John Deere Landscapes ('JDL'). Under the terms of the contract, to maintain their exclusivity, JDL is required to purchase a minimum of approximately $40 million of PHC's products over the 10 year term of the contract. The JDL and PHC partnership offers professional landscapers a three-year guarantee on select nursery stock purchased from JDL provided that PHC's Tree Saver(R) product is incorporated at the time of planting. In addition to the warranty programme provided by JDL to its customers, PHC will become the exclusive provider of biological based products to all of JDL's wholesale outlet stores - which currently stands at around 300 stores. PHC's natural based Tree Saver(R) product will be used by the programme's customers to ensure the warranty remains effective. The programme's key promise to its customers is to replace any trees or shrubs that fail during the three-year period that are covered under the terms of the warranty. This innovative combination of a planting survival guarantee underpinned by the application of natural products is believed to be the first of its kind in the United States on this scale. Trading Update The Board has undertaken a thorough financial review of the business for the year ending 31 December 2005. Following this process and additionally as a result of the need to invest in infrastructure and financial systems to deal with the new contracts that PHC has entered into, the cost base of the Group has increased. Accordingly, in terms of the current financial year, PHC is now anticipating an increased cost base and, together with severance costs associated with the departure of the finance director and costs relating to a delay in the transfer of PHC's lease on the first manufacturing site, the Board expects losses for the year ending 31 December 2005, to be significantly greater than current market expectations. However, given the new business that PHC is contracting and the margin profile of some of the contracts it has entered into, the Board remains confident of meeting expectations for the year ending 31 December 2006. John Brady, CEO of Plant Health Care, said, 'Our business strategy is to ensure that our products reach the customer through innovative marketing concepts, and this partnership with JDL confirms the progress Plant Health Care is making in the sale and marketing of our products. We are very excited to be entering into this 10 year relationship with the preeminent distributor of landscape and irrigation products in the world today. JDL has unrivaled distribution reach and depth of products and coupled with their strong belief in the future of environmentally friendly products creates exciting possibilities of cooperation in the future. Our Plant Health Care team is thrilled with the opportunity to work with a company of John Deere Landscapes' caliber.' Frank Bates, Senior VP of Operations, John Deere Landscapes, commented, 'The pilot programme was very controlled. As we look over the response and feedback from the programme, JDL is compelled to take this innovative replanting survival guarantee to a much broader market. Strategically, it has mitigated the economic risk of plant life for the landscape contractor and allowed JDL to strengthen its position as the most viable single source for green industry products. Ultimately, Plant Health Care's technology and this agreement will enable John Deere Landscapes to help the landscape contractor reduce business risk and cost.' For further information please contact: Plant Health Care plc John Brady, CEO Tel: 001 603 525 3702 John Deere Landscapes Jennifer Orechwa Tel: 001 770 255 2125 Tavistock Communications Tel: 020 7920 3150 Jeremy Carey Christian Taylor-Wilkinson Notes to Editors: About the programme The programme requires eligible landscape contractors to be trained and specially certified on the programme as well as planting procedures. Once the eligible landscape contractor is certified and enrolled in the programme, all plant material purchased and installed under the guidelines will receive a three year warranty. The warranty is a trade warranty extended to the certified landscape contractor that is purchasing the eligible nursery stock and it is not transferable to the property owner. To learn more about the programme, visit the website www.JohnDeereLandscapes.com. About Plant Health Care Plant Health Care plc ('PHC') is a leading provider of natural products for plants and soil. Established in 1995 in Pittsburgh (Pennsylvania) in the United States, PHC currently has approximately 60 employees and has operations in the US, Mexico, UK, Spain, and the Netherlands with technical support in Austria. The Group has two principal operating subsidiaries in the US - PHC Inc (PA) and PHC-REC. The Company listed on the AIM market of the London Stock Exchange in July 2004. Ticker symbol is phc. PHC's products are aimed at the horticulture, agriculture, turf grass, commercial landscaping, forestry and land reclamation industries and are both environmentally beneficial and on the whole more cost effective than synthetic chemical alternatives. Through the commercialisation of these products, PHC is capitalising on current long-term trends toward natural systems and biological products for plant care and soil and water management uses. PHC-REC is an environmental and reclamation engineering consulting firm which provides engineering and design services for reclamation lands disturbed by mining, construction, and other activities. PHC-REC is the recognised leader in the use of biologically based solutions using mycorrhizal fungi and bacteria for the establishment of trees, shrubs, and grasses on these disturbed lands. PHC-REC was established in 1997 to exploit PHC's products and technology. About John Deere Landscapes John Deere Landscapes, a wholly owned subsidiary of Deere & Company (NYSE:DE), is the nation's leading supplier of wholesale irrigation, landscape lighting, nursery and landscape supplies for green industry contractors. John Deere Landscapes also offers contractors additional related services that support their core businesses. Established in 2001, John Deere Landscapes currently operates around 300 branches in the United States, with approximately 1800 employees. Through the Company's vision of maximizing the success of all stakeholders, John Deere Landscapes is dedicated to becoming the distributor of choice for landscape and irrigation professionals. This information is provided by RNS The company news service from the London Stock Exchange
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