MICAP PLC (“MICAP”)

The AIM - quoted technology company specialising
in the microencapsulation of active ingredients

 New Option Agreement  

“Micap plc grants option to Nufarm Ltd for agrochemical applications of its patented yeast encapsulation technology”

Micap plc (LSE: MIC) today announces that Nufarm Limited, (ASX: NUF) (“Nufarm”), one of the world’s leading crop protection companies, has signed an exclusive option to evaluate and license Micap’s patented yeast encapsulation technology (“The Technology”) for a range of applications in the agrochemical field.

Micap and Nufarm have carried out a number of exploratory laboratory and field trials in recent months to evaluate the potential of the technology for specific crop protection functions. Following very encouraging results, the partners have entered into an agreement, whereby Nufarm will have exclusive rights to conduct an in depth evaluation of the technology for a range of uses in the agrochemical field, with an option to take a license for commercialisation of those applications.

Over the period of the relationship, Nufarm will pay Micap access and milestone payments. Micap will be entitled to a royalty on all sales of products containing the Technology if it is subsequently commercialised by Nufarm.

Micap believes that the optimum method to ensure the successful development of a yeast encapsulated product is to partner with a company with the resources and experience to cover all aspects of registration, formulation and commercialisation. Nufarm, as one of the world's leading crop protection companies, with revenues in the year to July 2005 of Aus$1.67 billion, has the ability to maximise the commercial potential of the technology given its development capabilities.

The worldwide crop protection market was in excess of US$30 billion in 2004, with fungicides and insecticides accounting for approximately half of this.

In line with its strategy for this sector, as previously announced, Micap is in advanced stages of discussions with another agrochemical company for other applications of its patented yeast encapsulation technology and will update shareholders on the conclusion of any option agreement .

Commenting, Michael Norris, Chief Executive of Micap, said:

“This agreement represents a significant and exciting step forward in the validation of Micap’s technology. We are delighted to have partnered with a company such as Nufarm, whose global footprint and strength in the crop protection market, provides an excellent endorsement to our offering. We look forward to this collaboration enhancing the rate at which our technology is commercialised and I look to the future with excitement and optimism”.  

Dale Mellody, Nufarm’s Group General Manager of Global Marketing added:

“We have found Micap’s technology to be very interesting and we look forward to working closely with its team during the in-depth evaluation phase and across those settings that look to have attractive commercial potential.”


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Notes for editors:

About Micap

Micap is a provider of microencapsulation solutions to a range of customers in fields such as flavour delivery, agrochemicals, healthcare and industrial applications, using both its proprietary yeast cell technology and bespoke methods developed by its scientific team. For further details visit www.micap.co.uk.  

About Nufarm

Nufarm Limited is one of the world's leading crop protection companies. It produces products which help farmers protect their crops against damage caused by weeds, pests and disease. In the year to July 2005 it achieved worldwide revenues of Aus$1.67 billion.

With manufacturing and marketing operations based in Australia, New Zealand, Asia, Europe and the Americas, Nufarm employs more than 2,600 people, all of whom make a vital contribution to the company's reputation for quality products, innovation and first class marketing and technical support.

Based in Australia, Nufarm is listed on the Australian Stock Exchange (ASX: NUF), with its head office located at Laverton in Melbourne.
 

About microencapsulation

Microencapsulation is a process whereby tiny droplets of liquid or particles of solid material are coated with a continuous film of polymeric material. Microcapsules have several benefits, including conversion of liquids to solids; separating reactive compounds; protecting substances against environmental factors; and improving the material handling properties. Micap’s unique proprietary technology involves using killed yeast cells as natural capsules to protect the active ingredient. Yeast encapsulation can protect active ingredients against high temperatures, the effects of the sun, pressure and degradation through exposure to the air.

Micap plc ("Micap" or the "Company") will release its preliminary results during the week commencing 5th June 2006 .  

Contact:   Micap plc                                01942 625590
Michael Norris, CEO                              07966 341802

About the Company

Micap is a provider of microencapsulation solutions to a range of customers in fields such as flavour delivery, agrochemicals, healthcare and industrial applications, using both its proprietary yeast cell technology and bespoke methods developed by its scientific team.