Kiotech completes successful Aquatice trials programme

Kiotech International plc is pleased to announce the successful completion of a seven-month trial of its Aquatice® attractant to enhance the rate of growth and feed conversion in catfish (Clarias sp.). The eight-pond trial was conducted in Southern Thailand. This is one of a number of Aquatice® trials being carried out on a range of fish species in South East Asia and the first on catfish. The Aquatice® treated ponds delivered double the number of large catfish, which command a premium price in the market and a significantly higher total yield and marked improvement in the feed conversion ratio compared with the control ponds. Following the trial the catfish from the Aquatice® treated ponds generated revenues over 30 per cent greater than the catfish from the control ponds. There are approximately 1.5 million metric tonnes of catfish cultured in South East Asia of which around 70 per cent are farmed in Vietnam, where Kiotech has recently agreed to work with Bayer HealthCare.

During the last 18months Kiotech has completed a series of successful trials to quantify the efficacy of Aquatice®. The catfish trial is the latest in this series. Further trials with additional species will be conducted, but the consistently good results already achieved now provide sufficient robust data to demonstrate the efficacy of this product and to allow positive steps toward the commercialisation of Aquatice® for the species already trialed. To achieve this objective Kiotech is in discussions with world leaders in the biotechnology sector regarding distribution of the product, particularly in the very important South East Asian markets.

Registration of Aquatice®, to permit the product to be sold into the animal feed sector, is underway. The first step was the granting of a Certificate of Manufacture and Free Sale by the Department of Environment, Food and Rural Affairs (DEFRA) in January 2008. Approvals are now being sought in cooperation with our distribution partners in selected South East Asian countries.

The significant commercial benefits of Aquatice® have been demonstrated through the trials and the regulatory approval process is underway. Kiotech's management is confident of progressively building sales once the regulatory approvals have been granted; the potential offered by this unique technology is exciting.

Kiotech International PLC supplies high-performance, natural feed additives to enhance health, growth and sustainability in aquaculture and agriculture.

Kiotech's Aquatice® range of products is used in aquaculture to stimulate feeding. Kiotech applies patented technology to deliver three principal objectives:

· To raise customers' financial returns through delivering higher uptake of applied feed and higher growth rates for farmed fish.

· To increase the feeding activity of farmed fish with the aim of accelerating growth and lowering total feed consumption. It also prevents significant environmental damage by reducing wastage from uneaten feed.

· To permit the use of more sustainable forms of proteins in fish feeds, thus replacing fish based ingredients. This will protect wild fish populations from further depletion and satisfy the increased demands expected from the aquaculture sector.

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Kiotech completes successful Aquatice trials programme