HAMILTON, Bermuda, February 24 /PRNewswire-FirstCall/ -- CalciTech Ltd. (OTC: CLKTF; ISIN: BMG175801049) announces it has successfully concluded a restructuring of its debt in order to facilitate the arrangement of on-going working capital. Epsom Asset Management Ltd. ("Epsom"), who has supported CalciTech for some years with working capital lines and negotiated conversions from time to time, have agreed to substantially convert the USD 5 million outstanding debit, into common shares amounting to 54,305,844 shares. Epsom has agreed to the above conversion and the placement of 27,305,844 shares with its clients, providing other existing and new investors acquire the remaining 27,000,000 shares at the same price. The proceeds will be loaned to CalciTech under the current credit facility for working capital purposes with interest charged at a rate of 1.75% per annum, payable quarterly. Epsom has given notice to exercise a first tranche of 15 million shares. This will leave approximately 40,000,000 shares to be converted. As a key element of this restructuring, all 6% unsecured convertible debenture holders amounting to USD 4,642,000, have agreed to convert 50% of the capital with accrued interest to 31st December 2008, amounting to $2,526,064 into common shares at USD 0.095 per share. This will amount to 26,590,147 shares. The remaining debentures will be extended for a further term of two years at an interest rate of 1.75% per annum, payable quarterly, with the right to convert into common shares at USD 0.75 per share amended from an original conversion of USD 1.75 per share. Following the completion of the restructuring, the issued share capital will increase from 99,998,665 to 185,639,086 shares. Roger Leopard, CalciTech's CEO, comments, "I am very pleased that Epsom and the debenture holders have given their support in this very difficult economic climate. This restructure is inevitably very dilutionary and reflects the nature of the current market conditions, however this reduces our debt by USD 8,135,340 and we have significantly lowered our projected overhead to ensure good use of the funds to contain dilution. Debenture interest is also significantly reduced following their re-negotiation to an interest rate more in line with current conditions. With the support of our major shareholders, I am confident that we will raise the funds we require to crystallize our first project. This announcement reflects proposals that I addressed in my President's letter posted on our web page in January this year." This press release contains "forward looking statements" including forward looking statements as that term is defined in section 27a of the United States Securities Act of 1933 and section 21e of the Securities and Exchange Act of 1934. Statements in this press release, which are not purely historical are forward looking statements and include any statements regarding beliefs, expectation or intentions concerning the future. Forward looking statements in this press release include, but are not limited to statements which are subject to a number of contingencies and uncertainties, including, but not limited to, market acceptance for CalciTech's products, manufacturing of CalciTech's products in a commercial setting, obtaining adequate financing and construction management for products and obtaining appropriate permits. It is important to note that the corporation's actual outcomes may differ materially from those in forward looking statements contained in this press release. Although the company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations and intentions will prove to be accurate. Readers should refer to the risks disclosures in the company's public filings with the Securities and Exchange Commission. Contact: CalciTech Ltd. Marc Lakmaaker Tel.: +41-22-710-40-20 E-Mail: Internet: http://www.calcitech.com/ Equity Development Andy Edmonds Tel.: +44-207-405-77-77 Internet: http://www.equitydevelopment.co.uk/ DATASOURCE: CalciTech Ltd. CONTACT: Contact: CalciTech Ltd., Marc Lakmaaker, Tel.: +41-22-710-40-20, E-Mail: ; Equity Development, Andy Edmonds, Tel.: +44-207-405-77-77

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