Myconate - test results

Plant Health Care PLC
13 March 2006


Embargoed until 7am 13 March 2006


                              Plant Health Care plc
                                        
                             ('PHC' or 'the Group')
                                        
                                        
                                   Myconate -
                                        
                            Successful Test Results


Plant Health Care (AIM: PHC.L), a leading provider of natural products for
plants and soil, is pleased to report the success of its Myconate test
programme, which has now been completed to a level suitable to commence
commercialisation.


Following its announcement in December last year regarding the first tranche of
data, the Board is pleased to report further test results have now been
completed which fully endorse the positive early findings announced previously.


PHC's novel Myconate technology helps crops to develop larger root mass, through
the stimulation of mycorrhizal fungi, so they can prosper under stressful
conditions. Myconate works by triggering the colonisation of beneficial
micro-organisms called mycorrhizal fungi. With more mycorrhizal fungi at work,
each plant can draw more nutrients and moisture out of the soil. More nutrients
make for healthier plants, and significantly greater overall yields. The Board
believes Myconate could be the key to changing the face of farming. The safety
and ease of application of Myconate means that management practices need not be
over-hauled. The procedure is a straightforward blending process, either tank
mixing the Myconate with the fertilizer during planting, or applying the
Myconate to the seed before planting.


The 2005 Myconate tests were performed in numerous countries in the Americas,
Europe and Africa, in different soil and climate conditions, with the tests
conducted on many different crops and using a range of application methods.


Highlights from the trials include:


   • Average corn (maize) yield increases of 9%
   • Average soybean yield increases of 13%
   • Reliable yield increases in 8 other major crops
   • Application methods are simple, versatile and consistent - Myconate can
     be applied as both a seed coating and from tank-mixing with fertilizer
   • Myconate, with either application method, generates equal levels of seed
     germination and stand density (number of plants per hectare)
   • In the tests, Myconate increased root density by over 50%, aiding their
     early-stage plant growth
   • Based on the trial successes in 2005, all of the major chemical and seed
     companies participating have elected to take the trials to the next phase 
     of testing in 2006


The tests have had the added benefit of raising the profile of Myconate among
its target markets prior to commercial rollout. PHC is currently evaluating the
various routes to commercialise Myconate, including both developing its own
distribution channels and partnering with one or more of the major agrichemical
or seed companies. Whilst these routes are not mutually exclusive, it is not
likely that an attractive partnering deal would be achieved until after a
further period of trials.



Trial Results

The majority of the trials in this final tranche have been successful and
confirmed the results of trials dating back to 1997, with yield increases in the
range of 2%-30% with standard seed coating techniques and where 'side dressing'
(i.e. mixing the Myconate with fertiliser at time of planting) has been
employed. The best results have been observed from the tests on corn and
soybean, the two largest row crops in the world. Especially encouraging are the
independent results from the French corn studies on non-GMO corn seed. In this
large scale trial the corn yields from Myconate treated seed were 12%-24% higher
than the control fields.

Examples of the results are shown in the two tables below:



Myconate Corn (Maize) Trials

           Year                     Location            Increase over control   

 
            2005                 Masset, France                 +21%           

            2005                  Pontiac, IL                   +16%            

            2005                 White Corn, CA                   0%            

            2005                   Atlanta, IN                   +2%         

            2005                 Toluca, Mexico                 +37%          

            2005                 Julesburg, CO                    0%           
 
            2005                Istanbul, Turkey                 +5% 
        
            2004                  Sheridan, IN                  +25%

            2002                   Owosso, MI                    +8%           

            2002                    Avon, IL                     +8%          
 
            2001                     Poland                     +20%   
        
            1998                 Jabalpur, India                +27%           



Myconate Soybean Trials

            Year                   Location           Increase over control   

            2005                 Atlanta, IN                     +6%            
  
            2005                 Yuma Co., CO                     0%            

            2004                 Sheridan, IN                   +40%           

            2004                 Atlanta, IN                     +3%            

            2002                 Yuma Co., CO                   +21%           

            2002                Rocky Ford, CO                  +10%           

            1999                  Tipton, IN                    +18%           

            1999                    Brazil                      +16%           
  
            1997              Purdue University                  +8%            




Although certain tests did not indicate yield increases, they nevertheless
provided highly valuable information and have given PHC a better understanding
of the most appropriate application methods for Myconate in commercial settings.

Whilst positive test results are the ultimate aim, considerable experience can
also be gained from understanding the background to the negative results (e.g.
0% yield increases, as seen in Julesburg, Colorado and White Corn, California).
In these examples, certain plants had reached their genetic maximum potential,
while other negative results allowed PHC to assess the shelf life of Myconate.
Like any other chemical product, Myconate is affected by its exposure to air,
water, and sunlight. This information will be incorporated into the
commercialisation plans.


Size of Market

The size of the worldwide agricultural market presents a huge opportunity for
PHC, as Myconate has applicability to a wide range of crops. For example, the
corn and soybean markets represent a total value to farmers of about $90
billion. The table below shows an indication of the potential value of the
market that PHC is entering:




          Worldwide     Yield    Price   Average       Estimated       Estimated   
           Hectares    kg Per   Per kg     Trial  Gross kg Yield  Gross Value of 
           (million)  Hectare              Yield        Increase        kg Yield    
                                        Increase        (million)       Increase    


Soybean          91     2,234    $0.21        13%         26,428    $5.5 billion  
  

Corn            147     4,907    $0.08         9%         64,919    $5.2 billion  
(Maize)                            

(Sources: Company and trial data, UN and Chicago Board of Trade, analyst
calculations)


Based on the trial successes, all of the major chemical and seed companies with
which the Group currently partners have elected to take the trials to the next
phase of testing in 2006. The next phase of testing is expected to be completed
by the first quarter of 2007.

John Brady, CEO of Plant Health Care commented on the results, 'These successful
results are extremely encouraging, yet it comes as no surprise to witness the
positive effects of the 2005 trials, in which the application methods were
varied to determine the response of Myconate. The greatest improvements have
been in large volume row crops such as corn and soy bean, but other important
improvements are in the higher value crops, such as tomatoes.

'The feedback from these large chemical and seed company trials has contributed
significantly towards our determining the best routes to full commercialisation
and we are now in a position to initiate the rollout of Myconate.'


The full document of results is available from the Plant Health Care website.


                                     -ends-


For further information please contact:
Plant Health Care plc
John Brady, CEO                         Tel: [phone]

Tavistock Communications                Tel: [phone]
Jeremy Carey
Christian Taylor-Wilkinson



Notes to Editors:

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 70 employees and has operations in the
US, Mexico, UK, Spain, and the Netherlands. 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.


Web Site: www.planthealthcare.com



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