Acquisition of Pharmaherb Ltd

RNS Number:9169W
BioProgress PLC
21 May 2007


For Immediate Release                                               21 May 2007

                                BioProgress plc

                        (BioProgress' or the 'Company')

                       Acquisition of PharmaHerb Limited


London, UK, 21 May 2007: BioProgress (AIM: BPRG; NASDAQ: BPRG), the specialty
pharma and healthcare company today announces the acquisition of PharmaHerb
Limited ("PharmaHerb"), a UK-based vitamin and nutritional business. The
consideration for the acquisition was #600,000 which has been settled by
#150,000 cash and the issue of 694,981 ordinary shares of the Company with a
value of #450,000. Application will be made for these new ordinary shares to be
admitted to trading on the AIM market of the London Stock Exchange. It is
expected that dealings will commence on 24 May 2007.

PharmaHerb is a specialist 'Over-the-Counter' ("OTC") products company, whose
core activities include product formulation, manufacturing and packaging. The
acquisition includes PharmaHerb's Kudos range of brands together with its sales
and marketing capabilities. The Kudos brand is a premier label business focused
on the promotion of vitamin and nutritional products through established and
diversified distribution channels.  These distribution channels include niche
health shops, pharmacies as well as supermarket chains. The business also has a
direct-to-consumer internet sales capability (www.kudosvitamins.com).

The acquisition of PharmaHerb creates an OTC platform for the Company with
established sales and marketing channels which will allow BioProgress to
directly market its own OTC ranges into its domestic market. Pharmaherb acquired
the assets of Kudos in March 2007 which included packaging equipment, stock,
formulations, intellectual property as well as sales and marketing agreements
and established channels to the OTC consumer market. The sales of Pharmaherb are
negligible (2006 sales of Kudos were #255,000 and the business invested
approximately #1m in capital for assets and infrastructure growth), however, the
assets represent an operating infrastructure and thus a low cost entry into the
UK market. BioProgress expects to utilise these assets immediately to create
strong organic growth. Combining the Kudos and Dexo product ranges will provide
a broader product portfolio to further develop and expand the acquired sales and
distribution capabilities. In particular the business will be used as a base to
launch future UK Soluleaves(TM), Meltums and other XGEL enhanced OTC products.

The acquisition is analogus to that of DMPL earlier in the year and will provide
a significant distribution channel for the MINCI DIET product range as well as
supporting the co-promotion of 'SlimThru' obtained through a partnership
agreement with Melbrosin International, announced earlier this year.

Richard Trevillion, Chief Executive Officer said:

"The acquisition of PharmaHerb Limited and the Kudos brand are an important step
as a launch pad for our own XGEL(TM) OTC products and to generate revenues within
the UK market place. The acquisition further strengthens our position and
reflects our drive into the growing niche branded OTC market. The established
distribution channels that come with this acquisition allows us greater and more
rapid market access for our growing product portfolio."

For further information:

BioProgress Plc                                            + 44 (0) 20 7098 9881
Richard Trevillion, CEO
Steve Martin, CDO
Hiral Patel, CFO

Buchanan Communications                                    + 44 (0) 20 7466 5000
Rebecca Skye Dietrich
Mark Court

About BioProgress

BioProgress plc is an innovative specialty pharmaceutical and healthcare
business based around its platform technologies in polymer and film systems.
Listed on London's AIM in May 2003 and on US NASDAQ in October 2004, the company
has over 80 patents granted or in application within 24 patent families and has
product development agreements and strategic alliances with several global
companies. As a virtually integrated business, BioProgress has acquired sales
and marketing resources within Europe and the US as a launch mechanism for its
own pharmaceutical products. The business continues to develop innovative
delivery mechanisms using its XGEL(TM) polymer technology, replacing the need to
use animal-derived gelatine in pharmaceutical and healthcare products. For
further information please go to www.bioprogress.com

Forward-Looking Information.

The Ordinary Shares of BioProgress plc are registered under the US Securities
and Exchange Act of 1934.  To the extent that this announcement contains certain
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, this paragraph applies.  These statements are
based on management's current expectations and are subject to uncertainty and
changes in circumstances.  Actual results may vary materially from the
expectations contained in the forward-looking statements.  The forward-looking
statements in this release include statements addressing future financial and
operating results and the timing and benefits of the reorganisation.  Detailed
information about factors pertinent to the business of the company that could
cause actual results to differ is set forth in the Company"s filings with the
Securities and Exchange Commission.  The Company is under no obligation to (and
expressly disclaim any such obligation to) update or alter its forward-looking
statements whether as a result of new information, future events or otherwise.
This announcement is for information only and does not constitute an offer or
invitation to acquire or dispose of any securities or investment advice.  The
distribution of the announcement and/or issue of securities in certain
jurisdictions may be restricted by law.  Persons into whose possession this
announcement comes are required to inform themselves about and to observe such
restrictions.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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