Tepnel buys Orchid Biosciences

Recent share options long term incentive scheme announced on 23 Aug 2006

When announced the SP was approx 7.25p on 22nd Aug (effective date). Valid for 3 years.

Therefore, for Ben 5,000,000 nil cost options
50% increase would equate to SP of 10.88p, which would be worth approx. GBP 136K to Ben (1.25m options[25%] * 10.88). Of course more, if SP rises further.
100% increase would equate to SP of 14.50p, which would be worth approx. GBP 725K to Ben (5m options[100%] * 14.5). Of course more, if SP rises further.

Therefore, for management team to share 6,165,000 nil cost options
50% increase would equate to SP of 10.88p, which would be worth approx. GBP 168K to mgmt team (1.541m options[25%] * 10.88). Of course more, if SP rises further.
100% increase would equate to SP of 14.50p, which would be worth approx. GBP 893K to mgmt team (6.165m options[100%] * 14.5). Of course more, if SP rises further.

Also note, as Tepnel have 230m shares in distribution 11m more shares would equal approx 6% dillution.

Of course this seems ridiculous generous to management when we all know it is only a matter ot time before the SP will rise significantly as the company gets re-rated. At least it was tied into SP rising and not given to them anyway. However, I would have liked the targets to have been a little more challenging to be honest - 25% of options for 100% rise in SP and 100% of options for 250% rise in SP.

If Tepnel Management are reading (and I know they do) this better be a ONE-OFF! Otherwise, your benefits are absolutely ridiculous for the size of company we are. About time you delivered for us long suffering shareholders and stopped lining your pockets at every opportunity.

TTNY