Trading Statement

Plant Health Care PLC 17 January 2007 Embargoed until 7:00am 17 January 2007 PLANT HEALTH CARE PLC ('PLANT HEALTH CARE' OR THE 'COMPANY') Trading Update Plant Health Care plc provides a post year end update on 2006 and current trading. It also announced today that it had entered into an agreement of up to ten years with Bayer CropScience AG ('Bayer CropScience') to develop new seed treatment solutions based upon Plant Heath Care's Myconate technology and Bayer CropScience's seed treatment products. Plant Health Care's turnover for the year ended 31 December 2006 was $13.7 million, marginally below previous expectations because of the need to hold back Myconate sales pending the conclusion of an agreement with a development partner. In consequence the Company will also be reporting a marginally higher than expected loss for the year. Good progress was made in all areas of the business during the period, particularly in Europe, where sales have increased 44% year on year, and Mexico where sales have increased 39% year on year. The reclamation activities showed turnover growth of 33%, landscaping showed growth of 8% and our new venture in 2006, US Agriculture, showed sales of $0.8 million, mostly in the last two months of the year. In all of the operations, the strong trading experienced towards the end of 2006 has continued into the new year. At the year end, the Company had higher than anticipated receivables, reflecting the high level of sales in December and increased inventories by some $1.3 million in order to satisfy orders for delivery early in 2007. These orders included a $0.5 million order to supply a Terra-Sorb derived gel product to a Mexican customer for use as a balm in infants' nappies. It is the board's intention to develop Myconate for use in several further applications including on small cereal grains such as wheat, oats and barley. Plant Health Care also plans to develop and market Myconate for use on vegetable and other speciality crops through its own sales force. Alternative application methods for Myconate both in row crops and vegetables will be investigated. All of these initiatives will be progressed over the ensuing months and it is the board's belief that the potential market for these applications of Myconate is considerable. John Brady, CEO of Plant Health Care said: 'Having reached agreement with Bayer CropScience for the development of our Myconate technology for use on corn, soybean, cotton and sunflowers, we have increased confidence of its attractiveness for other applications.' -ends- For further information contact: Plant Health Care plc John Brady, CEO; phone: +1 603 525 3702 E-Mail: jabrady@planthealthcare.com Tavistock Comunications Jeremy Carey/Matt Ridsdale, phone: +44 20 7920 3150 E-Mail: jcarey@tavistock.co.uk, mridsdale@tavistock.co.uk 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 landscape, agriculture and land reclamation industries and are environmentally beneficial. Through the commercialization of these products, PHC is capitalizing on current long-term trends toward natural systems and biological products for plant care and soil and water management. Further information is available at: www.planthealthcare.com This information is provided by RNS The company news service from the London Stock Exchange LRIRLID
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