£3.6 million Cash Placing at 9% Premium and Maiden Dividend

IS Pharma plc (“IS Pharma” or the “Company”: LSE: ISPH), the international speciality pharmaceutical company, is pleased to announce that it has raised £3.6 million through the issue of 4,613,160 new ordinary shares at 77 pence per placing share with Abingworth LLP. Following this placing, Abingworth will be IS Pharma’s largest shareholder with 13% of the shares in issue.

The placing price at 77 pence represents a 9 per cent. premium to the closing price of 70.5 pence per ordinary share on 5 October 2010.

IS Pharma continues to focus on its strategy of growth through the acquisition, development and growth of late stage speciality products. Given the strong and sustainable increase in revenues and profits, together with a further strengthened balance sheet, the Board is also pleased to announce its intention to introduce a maiden dividend. The dividend will be paid in respect of the year ended 31 March 2011.

Tim Wright, CEO of IS Pharma, said:

“Abingworth has an excellent reputation as a strategic healthcare investor and we are delighted with their enthusiasm for investing in IS Pharma, as we continue to implement our growth strategy. The announcement today of our maiden dividend further underlines our confidence in the strength and continued growth of our business.”

Joseph Anderson, Partner of Abingworth LLP, said: “We are delighted to join IS Pharma at this crucial stage in its development and see substantial growth opportunities ahead. We look forward to becoming partners with the Company as it reaches towards its goal of becoming a leading specialty pharmaceutical player in Europe. ”