TO: CITY EDITORS              
FOR IMMEDIATE RELEASE

10 March, 2008

BIOQUELL PLC

2007 preliminary results: significant increase in revenues and profits

Proposed payment of an ordinary dividend
Board changes, including new Chairman from 2009 AGM

BIOQUELL PLC (“BIOQUELL”), the UK leader in specialist decontamination technology and testing/compliance services, announces its preliminary results for the year ended 31 December 2007. The highlights are:

FINANCIALS

• turnover £34.1 million (2006: £25.2 million), a 35% increase - all from organic growth
• profit before tax: £4.2 million (2006: £1.2 million) – a 250% increase in pre-tax profit
• earnings three times the level of last year at £3.7 million (2006: £1.2 million) and basic earnings per share 8.9p (2006: 2.9p)
• net cash £2.7 million (2006: net debt £(0.6) million) – a £3.3 million improvement
• net assets £16.1 million (2006: £11.5 million)
• proposed final dividend of 2p per ordinary share (the Group last paid a dividend on the ordinary shares in 1989)

BOARD CHANGES

• Nigel Keen joins the Board of BIOQUELL today. Mr Keen is currently Chairman of The Laird Group PLC, Axis-Shield plc, Oxford Instruments plc and Deltex Medical Group plc
• John Salkeld, Chairman of BIOQUELL, has informed the Board that he wishes to retire from the Board at the 2009 AGM – and it is intended that Nigel Keen will replace him as Chairman from this date
• Dick Towner has informed the Board that he wishes to retire from the Board at this year’s AGM on 27 May, 2008

ACTIVITIES:
Decontamination division

• turnover £23.6 million (2006: £14.6 million), organic growth of 62%
• healthcare (“superbugs” / hospital acquired infection): The Group’s strategy of offering hospitals a range of solutions to combat hospital acquired infection – from long term in situ BIOQUELL “implant” teams to “outbreak” emergency deployments – is beginning to show meaningful growth, with long term BIOQUELL “implant” teams currently in place in three US hospitals and two UK hospitals. “Outbreak” emergency deployments in the UK have also shown significant growth in recent months
• life sciences: the new BIOQUELL Z – for zone or room decontamination - was launched in April 2007 and during last year achieved encouraging unit sales in the life sciences sector
• defence: the Group saw strong growth in its defence activities in the year, including the Joint Materials Decontamination System (“JMDS”) sub-contract win for the US Department of Defense and significantly increased sales of chemical, biological, radiological and nuclear (“CBRN”) filtration systems to a number of international military vehicle manufacturers
• healthcare (wound healing): a major clinical trial relating to BIOQUELL’s new wound healing technology started at the beginning of 2008 and preliminary results are expected before the year end

TRAC (Testing, Regulatory and Compliance) division

• turnover £10.5 million (2006: £10.6 million), 1% decline influenced by the move of two major testing facilities in the year
• high levels of military / aerospace orders continuing across the TRAC division
• the new TRAC brand achieving increased levels of market penetration

Commenting on the preliminary results, John Salkeld, Chairman of BIOQUELL PLC said:
“This is a good set of results showing strong growth, robust profitability and some £2.7 million of net cash on the balance sheet at the year end. I am delighted that the Board is able to propose the payment of a final dividend of 2p per ordinary share.

It is most encouraging to see our strategy delivering international revenue growth across the healthcare, life sciences and defence sectors. It is particularly gratifying that we are now seeing significant levels of interest in the use of BIOQUELL’s technology to eradicate “superbugs” from the hospital environment – and I am pleased that we currently have BIOQUELL “implant” technicians and equipment deployed at 3 US and 2 UK hospitals.

Notwithstanding the challenges associated with moving two core facilities, the TRAC division is making good progress at increasing its market share in the key military and aerospace market.
I am delighted that Nigel Keen, who has extensive, successful experience with international healthcare and technology companies, has agreed to join the Board and will be able to help the Group with the next stage of its growth. I would also like to thank, on behalf of the Board and shareholders, Dick Towner for his wise counsel, sound judgement and sense of humour during his 16 years as a director of the Group.”

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Enquiries:

John Salkeld   BIOQUELL PLC    01264 835 900
Nick Adams
Mark Bodeker