York Pharma plc - Update on merger discussions

24 June 2009: The Board of York today announces that the discussions between the Company and ULURU Inc. ("ULURU") concerning a proposed offer ("the Offer") by ULURU for the Company under the Takeover Code on the proposed terms indicated in the joint announcement on 7 April 2009 have been terminated.

On 7 April 2009, York and ULURU also confirmed that Uluru had made available to York a $1 million short term secured line of credit  necessary to allow the Company to continue trading through the period needed to complete any formal offer for the Company under the Takeover Code.  ULURU has given notice to the Company for the repayment, within 30 days, of the $1 million line of credit (together with accrued interest) previously advanced to the Company by ULURU.

York is now actively pursuing alternative funding facilities in order to repay the line of credit within 30 days and to meet its ongoing workingworking capital requirements. If the Company's fund raising efforts are unsuccessful, this will have a material adverse effect on the Company's financial position and operations. The Company will provide a further update as and when appropriate.

The Board of York understands that ULURU continues to consider its position with respect to the Company and a further announcement will be made as and when appropriate.