For Release 6th April 2006

Micap plc - Trading update

Micap plc (“Micap” or the “Company”) announces progress in its four business units and a significant increase in revenue in the second half of the financial year.

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.

The Company’s patented Yeast Technology continues to generate interest in agrochemicals. We are currently negotiating call options in two fields of fungicidal application, with two major multinational companies. In addition the use of natural essential oils as a pesticide is under consideration with a potential partner.

Our Bespoke Solutions division, based in Bremerhaven, Germany, has introduced its natural Jojoba bead product to a number of major cosmetics manufacturers. Orders for more than a tonne of the beads have been shipped recently, and we are expecting to see an increased take up
of the product. We also have a number of funded projects underway with companies in fields as diverse as bread-making, steel production and sports nutrition, which we are hopeful will lead to new product developments.

Our Production facility at Athlone, Ireland has shipped its first major order of yeast encapsulated mustard, and has received forward orders for 8 tonnes of this product in the next half year. This is validation of the yeast technology in application, and we are now seeking further customers
for our mustard and garlic products.

The production contract with the major flavour company, which was mentioned in the interim results has not yet been concluded. We are currently finalising the specification for the second phase of the upgrade to the plant, which we will need to carry out to service this contract, and we anticipate this will be concluded in the near future. If it is not trading will be impacted, but we have identified a number of alternative customers with whom we are in discussions regarding production contracts.

The Applied Analysis division based in York, has had a good second half, and has achieved its best ever monthly sales under Group ownership.

The lease on our former head office site at Haydock has attracted some interest, and we are in negotiations with a potential assignee. The conclusion of this assignment will help cash-flow significantly.

We intend to issue our preliminary announcement during the week commencing 15th May 2006. Our revenues for the second half of the financial year have grown more than 50% compared with the first half. This is a reflection of the new group structure which has been put in place over the last year, and whilst progress is not as swift as originally hoped, we continue to move closer to profitability as each of our trading divisions grows its revenues and we maintain our strict cost control.


Michael Norris - Chief Executive

Contact:

Micap plc - 01942 625590

Michael Norris, CEO - 07966 341802