Highlights:

• Turnover rose 219% to £1,247,000 (2004: £391,000)
• Gross profit increased 134% to £661,000 (2004: £282,000)
• Operating loss was £4,398,000 (2004: £3,207,000)
• Successful commercial rollout and take-up of Envirox and Optisol
• Raised £9,869,000 (net) during the year and admitted to AIM on 20 July 2005
• Acquisition of Nanoplex Technologies Inc, a developer of biodiagnostic and security detection systems
• Established key strategic relationships with Croda, Mitsui and Hanjoo
• Oxonica is successfully establishing itself as an international multi-sector business

Commenting on today's announcement, Dr Kevin Matthews, Chief Executive, said:

"Oxonica made significant progress in 2005 towards building an international nanotechnology group with innovative products for the energy and personal care markets being commercialised. This, combined with the key strategic deals completed in the year, provides a strong foundation for growth in 2006 and beyond."

For further information, please contact:

Oxonica plc

Kevin Matthews, Chief Executive 01865 856 700

Smithfield Consultants

Sara Musgrave 020 7360 4900