19/02/2008

green chemicals plc – working capital loan from a related party

Green Chemicals Plc

19 February 2008

For release 07.00, 19 February 2008

                     green chemicals plc

                      (or "the Company")

         Working Capital Loan from a Related Party

The Chairman's Statement, issued on 3 December, which formed part of

the interim results for the six months to 30 September 2007, informed

shareholders and the market that the Company had provisionally arranged

to place new ordinary shares with certain existing shareholders, in order

to provide the additional funds required to accelerate its development.

The independent Directors of green chemicals plc (Dr. A. E. Bayliff,

S. M. Winston, FCA, Prof. D. M. Lewis and Dr.R. H. Adams) have determined

in consultation with their advisers and the concerned shareholders that

such a share placing would not have been in the Company's best interests,

as it would have entailed substantial third-party costs at a stage when

any additional funds raised would ideally be applied wholly to the working

capital account of the business.

It has accordingly been agreed with IP2IPO Limited ("IP2IPO"), a subsidiary

Of IP Group plc ("IP Group"), that IP2IPO shall lend to the Company, on an

unsecured basis, the amount of GBP 250,000. IP Group is also the parent

company of Techtran Limited and of Top Technology Ventures Limited, manager

of the IP Venture Fund. Techtran Limited and the IP Venture Fund collectively

control approximately 30.52 per cent of the issued ordinary share capital of

the Company; this is therefore a related party transaction within the meaning

of the PLUS Rules.

The loan is for an unfixed term, repayable at any time after drawdown either

At the request of IP2IPO or at the option of the Company, and bears interest

at a rate of seven per cent per annum for the first six months and thereafter

at nine per cent per annum. The independent Directors and the Company's

advisers consider that the terms are fair and commercial and that they in no

way disadvantage the Company relative to the probable cost of any alternative

sources of capital presently available to it.

Commenting on the loan agreement Chief Executive Officer, Dr. Andrew Bayliff,

said: "The independent Directors are pleased that this loan capital has been

made available through a member of an important and supportive shareholder

group, thereby further demonstrating that group's belief in and commitment to

the Company."

                                     -ends-

For further information please visit www.greenchemicalsplc.com or contact:

Andrew Bayliff       Clemmie Carr                 Graham Atthill-Beck

Stephen Winston      Simon Hudson                 Peter Trevelyan-Clark

green chemicals plc  Tavistock Communications     Hichens Harrison & Co. plc

Tel: +44 870 8354351 Tel: +44 20 7920 3150        Tel: +971 50 856 9408 or

+44 20 7 588 5171