Intercytex: Institutional placing raises £2.75 million

Intercytex Group plc (LSE: ICX) (“Intercytex” or “the Company”), the leading developer of regenerative medicine products to restore skin and hair, today announces that it has raised £2.75 million before expenses through a placing for cash of 6,547,619 new Ordinary Shares of 1 pence each.

The new shares, which represent approximately 8.2 per cent. of the Company’s issued share capital prior to the placing, have been placed with existing institutional shareholders at a placing price of 42 pence per share. The placing price represents a discount of approximately 10 per cent. to the closing middle market price on AIM, a market of the London Stock Exchange, on Monday, 8 September 2008, and was undertaken pursuant to the disapplication of pre-emption rights in relation to issues for cash, the resolution supporting such disapplication having been passed at the last AGM.

Application has been made for the new shares to be admitted to trading on AIM. The placing is conditional on admission, which is expected to become effective on 11 September 2008. When issued, the new shares will rank pari passu in all respects with the Company’s existing ordinary shares.

Following the placing, Intercytex will have a total of 86,862,798 Ordinary Shares of 1 pence each in issue.

Commenting on the placing, Nick Higgins, Chief Executive Officer of Intercytex, said, “We are delighted with the support for this placing from the Company’s leading UK institutional shareholders. These funds will enable us to take our lead treatment for chronic wounds, Cyzact (ICX-PRO), through Phase III trials in readiness for partnering and also to continue the development of the other products in the Company’s late-stage pipeline. We look forward to reporting further progress in due course.”