York Pharma Announces Placing of New Equity


Hitchin, UK, 13 October 2006; York Pharma, the AIM-listed (AIM:YRK) strategic acquirer, developer and marketer of pharmaceutical products in the field of dermatology, is pleased to announce the placing of 3,092,783 new Ordinary Shares of 5p in York Pharma at 97p with institutional investors (“the Placing”).

Collins Stewart acted as Nomad and broker to the Placing.

Terry Sadler, CEO of York Pharma, commented: “This is an exciting phase in the development of our business as we move towards both the first commercialisation of Abasol™ and our first partnership deal. In the light of these developments, the placing achieves a number of strategic objectives for the Company. It strengthens management’s negotiating position ahead of our first partnership transaction, it allows the development of our pipeline to be accelerated, it meets the requirements of certain institutional investors who wish to support our business both now and in the future and, by increasing the institutional shareholder base of the Company, both greater momentum and stability for our share price going forwards is anticipated as we continue to meet our stated milestones.

In parallel, we have been finalising our regulatory strategy for Abasol™ in Japan and the USA and, with the benefit of a detailed response to our first regulatory filing (with the UK MHRA), we also plan to meet with the regulators in these two major territories to confirm their data requirements for the granting of marketing approvals.

Importantly, the clarity arising from the MHRA review, combined with the substantial amount of new data generated since our filing in July 2005, also enables the Company to progress our discussions with certain commercial partners and to plan the global commercialisation of Abasol™.

The remainder of our innovative and growing dermatology pipeline is developing rapidly with two projects progressing through clinical development and all other projects ‘on-track’. The Company intends to have important products in all major disease areas within the $10.4 billion prescription dermatology market.”

Application will be made for the new Ordinary Shares to be admitted to trading on the AIM market on the London Stock Exchange and trading is expected to commence on Thursday, 19 October 2006. Such Ordinary Shares will rank in full for all dividends and otherwise rank pari passu with all existing Ordinary Shares.

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For more information please contact:

York Pharma plc

Terry Sadler, Chief Executive Officer

Tel: +44 (0) 870 067 2563

E-mail: info@yorkpharma.com

Northbank Communications

Adam Michael, Account Director Annabel Entress, Account Manager

E-mail: a.michael@northbankcommunications.com E-mail: a.entress@northbankcommunications.com

Tel: +44 (0) 203 008 7554 Tel: +44 (0) 203 008 7557

Notes to editors:

About York Pharma plc

York Pharma is an AIM-listed strategic acquirer, developer and marketer of pharmaceutical products in the field of dermatology. Its portfolio embraces skin diseases that make up approximately 75% of the global $10.4bn dermatology market. For more information please see www.yorkpharma.com .