News/announcements

Interim management statement May 2011

Published on 16th May 2011

Bioquell PLC (“Bioquell”) (LSE symbol: BQE) - provider of specialist bio-decontamination technologies to the international Healthcare, Life Sciences & Defence markets and specialist testing services in the UK - announces its Interim Management Statement for the period from 1 January, 2011 to 15 May, 2011.

Financial position and performance of the Group

Group revenues in the four month period between January 2011 and April 2011 were ahead of the same period for last year and were in line with the Group’s projections. Service revenues continue to grow strongly.

The Group continues to have a strong balance sheet with a significant net cash position and an unused overdraft facility.

Life Sciences

We are continuing to see expanding opportunities – in research, clinical trials and production facilities - for Bioquell’s bio-decontamination technology in the Life Sciences sector around the world. To support these developing opportunities, a substantial proportion of Bioquell’s research & development activities is now focussed on the Life Sciences sector.

We are seeing varying levels of trading internationally with, for example, activity levels in the USA notably stronger than a year ago. We are completing the registration of our company in China; such registration will be important to enable us to build our market position in the fast-expanding Chinese market.

Healthcare

Orders have grown in our Healthcare business this year, including both equipment and service provision orders.

Generally we are seeing increasing international prospects for our bio-decontamination technology – which eradicates the germs responsible for hospital acquired infection (“HAI”).

We are completing the process of CE marking our wound-care product, BioxyQuell. Once the CE marking process has been completed we will be able to start testing a number of different deployment models and routes to market.

Defence

We are continuing to work on activities related to the testing of the prototype equipment developed for the United States Department of Defense’s Joint Services Sensitive Equipment Decontamination (“JSSED”) programme. The next stage of this and related programmes will depend on, among other things, the results of the testing and evaluation of the JSSED prototype units against chemical and biological warfare agents.

We are pursuing a number of potential contracts in the UK and internationally for our chemical, biological, radiological and nuclear (CBRN) filtration and environmental control products, which are used principally in military vehicles. Encouragingly we are seeing increasing opportunities for these products in the key US defence market.

TRaC

TRaC – the Group’s specialist testing, regulatory and compliance division – continues to perform well. The increasingly diverse number of services which TRaC now offers is helping to increase its revenues and build the business. Development of the new TRaC South facility is ongoing.

Outlook

Overall we are seeing reasonable levels of activity in the UK and internationally, and there is increasing interest in our bio-decontamination technologies and specialist testing services.

Interim management statement May 2011