Result of AGM

RNS Number:4616T
Phynova Group PLC
30 April 2008


Press Release                                                      30 April 2008


                               Phynova Group plc

                                  ("Phynova")

                          Annual General Meeting 2008

Phynova Group plc (AIM: PYN, OTCQX: PHNVY), the developer of prescription
pharmaceuticals derived from plants used in Chinese medicines, held its Annual
General Meeting at Phynova's offices in Long Hanborough today.  All resolutions
were passed.

In the temporary absence of Chairman Karl Watkin MBE, who was unavoidably
detained on business in China, Non-Executive Director Michael Martin took the
chair.  Mr Martin said:

"Phynova has made excellent progress on several fronts during the year.  For our
lead pipeline candidate, PYN17, we reported in November the successful
completion of its Phase I/II clinical trial.  This was designed to evaluate the
safety and tolerability of PYN17 in chronic hepatitis C and we were delighted to
report that PYN17 was well tolerated and safe, with a toxicity profile that was
indistinguishable from that of the placebo, with no recorded serious adverse
events.

"We see great potential for PYN17, the only drug currently in clinical
development for the relief of the symptoms of hepatitis C and improvement in the
Health Related Quality of Life (HRQoL) of hepatitis C patients.  Over 170
million people world wide are infected with hepatitis C.  Four million Americans
are currently believed to be infected with the virus and three quarters of these
will develop chronic liver disease in which the liver injury persists for a
prolonged period, if not for life.  PYN17 uniquely provides symptomatic relief
for patients with liver inflammation, an area of significant unmet need because
of the low efficacy and recognised toxicity of current antiviral treatments.
The need to address ways of improving HRQoL in chronic hepatitis C was
emphasised several times in papers given at last week's meeting in Milan of the
European Association for Study of the Liver, clearly demonstrating the potential
for a drug like PYN17, which Phynova anticipates could one day find wide usage
alongside conventional antiviral therapies for the disease.

"After detailed discussions with the US Food & Drug Administration, we expect to
initiate the PYN17 Phase IIb clinical study, the next stage of clinical trials,
in America during the second quarter of 2008.  This will provide the first proof
of concept data for PYN17.  We eagerly anticipate receiving the results of this
trial which should be available in the second half of 2009.

"For our plant-derived antibacterial PYN6, pre-clinical studies have
demonstrated a high degree of bacterial inhibition against methicillin-resistant
Staphylococcus aureus (MRSA) and against the acne bacterium, Propionobacterium
acnes.  We are now conducting formulation studies and we are in active
discussions with potential partners for this product.

"Encouraging results continue to emerge from our research to evaluate the
effectiveness of PYN18, our novel anti-viral drug candidate against hepatitis C
and dengue fever.

"PYN22, our candidate for the potential treatment of fatty liver, is also moving
forward successfully in pre-clinical development, having produced very
encouraging initial screening data during the year.  PYN22 is another drug
candidate that is attracting commercial attention.

"PYN9 for the treatment of post-operative ileus (or temporary bowel stasis) is
being developed by our Chinese partner, Botanic Century, and has made excellent
progress in pre-clinical development.  Pending approval from the Chinese FDA,
Botanic Century expects to begin a first clinical study before the end of 2008.
 We are also exploring ways in which to capitalize on our existing position in
the Chinese market and our extensive contacts in the Chinese pharmaceutical
business and academic communities.

"Within the next twelve months, we expect to have no less than three drug
candidates (PYN17, PYN22 and PYN9) in clinical trials, with other candidates
progressing closer to clinical development.  This is a remarkable achievement
for a company of our size.  At the same time, our broad pipeline means that we
are not over-reliant on any one single project.  We will also be continuing
discussions with the potential partners who have expressed a significant level
of interest in our products, either as marketing licensees or as development
partners who would share the burden of clinical development costs with us.

"Turning to financial matters, in November 2007 our ordinary shares commenced
trading on the PLUS Markets trading platform, a quote-driven trading system that
currently trades over 1,000 small and mid-cap company shares representing a
combined market capitalisation of around #200 billion.  Our American Depositary
Receipts ("ADRs") also started trading recently on the US International OTCQX
platform.  This new exchange promises cost-effective access to the US pool of
investment capital without the prohibitive regulatory burden of compliance with
SEC regulations and the Sarbanes-Oxley Act.  The OTCQX platform now trades on
average over US$1 million per listed company per day, three times the liquidity
of the AIM market.  Our ordinary shares continue to be quoted and traded on the
AIM market. Trading through PLUS and on the OTCQX is intended to enhance
investor choice, improving liquidity for shareholders and providing greater
access to investors.  Now that we have a process by which US investors can
easily invest in Phynova, we will be raising our profile in that market where we
are confident that our unique business strategy and focus is likely to find a
receptive audience.

"In April 2008, Phynova successfully raised in excess of #1.2 million from new
and existing shareholders.  With the Company's proven approach to minimising
corporate overheads, this financing allows us to continue to develop our
scientific programme and also demonstrates investor confidence in our business.

"Finally I would like to welcome all new shareholders who have invested in
Phynova over the past year and thank existing stakeholders for their continued
support."

                                    - Ends -

For further information, please contact:


Phynova Group PLC                                       [phone]
Robert Miller, Chief Executive Officer                  www.phynova.com

Nominated Adviser:
Nabarro Wells & Co. Limited                             [phone]
Marc Cramsie

Broker:
Evolution Securities China Limited                      [phone]
Barry Saint



Media enquiries:
Abchurch Communications                                 [phone]
Peter Laing/Stephanie Cuthbert
[e-mail]                   www.abchurch-group.com



Notes to Editors:



About Phynova

Phynova is a UK company developing prescription pharmaceuticals derived from
plants used in Chinese medicines.  Phynova is focused on viral and bacterial
diseases, metabolic diseases and cancer.  Phynova's lead product for hepatitis C
has now completed a Phase I/II trial in the US and the Phase IIb trial is
scheduled to commence in the first half of 2008.  Two further products, for
fatty liver disease and post-operative ileus, are targeted for entry to the
clinic over the next six months and there are a further four products in
preclinical development.  For further information please visit www.phynova.com.



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