CAMBRIDGE, England, April 12 /PRNewswire-FirstCall/ -- BioProgress plc (AIM: BPRG ; NASDAQ: BPRG), the specialty pharmaceutical company, today reports its Preliminary Results for the year ended 31 December 2005. Highlights - Turnover of GBP4.4 million, mostly generated in H2 2005, and gross profit of GBP1.8 million - Cash balances of GBP6.5 million at year end - Redemption of GBP5 million convertible bond for GBP1.65 million in cash and GBP1.65 million in shares - Substantially removed the litigation risks within the business - Restructuring of operations resulting in the reduction of both costs and cash burn in the second half of the year by GBP3.4 million - Successful restructuring of partnering arrangements to protect and reinvigorate the company's commercialisation objectives - Successful commercial launch of TABWRAP(TM) and WAFERTAB(TM) technologies - First delivery of NROBE(TM) machine in cGMP facility - Further investment in BioTec Films resulting in ability to supply cGMP accredited film in February 2006 - New IP created in both the ingestible oral dosing and non-ingestible device platforms - Investment in infrastructure necessary to integrate the Dexo S.A acquisition in 2006 moving the Group to pharmaceutical sales model Commenting on the Results, Richard Trevillion, Chief Executive Officer of BioProgress plc, said: "Bioprogress is now a fully integrated specialty pharmaceutical company. 2005 was a year of two halves. It commenced with spiralling costs, worsening trading conditions, partnership difficulties and operational confusion. However, as a result of rapid action taken during the second half of the year by the new management team, we have entered 2006 a very different company. All key partnerships are progressing rapidly to full commercialisation and the Company is also launching its own products with its own platforms. The Company's first quarter 2006 trading has demonstrated the effectiveness of the strategy implemented in the second half of the year. BioProgress is well positioned to end the year for the first time in its history trading profitably at an EBITDA level." Application has been made to FTSE for BioProgress to be re-classified from "Specialty Chemicals" to "Pharmaceuticals" within the Healthcare industry. It is expected that this change will be announced in the summer. To view the full preliminary results statement visit: http://www.bioprogress.com/html/investor_area/latest_results.html About BioProgress plc: BioProgress plc is an innovative specialty pharmaceutical and healthcare business based around its platform technologies in polymer and film systems. Listed on London's AIM in May 2003 and on US NASDAQ in October 2004, the company has over 80 patents granted or in application within 24 patent families and has product development agreements and strategic alliances with several global companies. As a virtually integrated business, BioProgress has acquired sales and marketing resources within Europe and the US as a launch mechanism for its own pharmaceutical products. The business continues to develop innovative delivery mechanisms using its XGEL(TM) polymer technology, replacing the need to use animal-derived gelatine in pharmaceutical and healthcare products. For further information please go to http://www.bioprogress.com/ Forward-Looking Information. The Ordinary Shares of BioProgress plc are registered under the US Securities and Exchange Act of 1934. To the extent that this announcement contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, this paragraph applies. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained in the forward-looking statements. The forward-looking statements in this release include statements addressing future financial and operating results and the timing and benefits of the reorganisation. Detailed information about factors pertinent to the business of the company that could cause actual results to differ is set forth in the Company's filings with the Securities and Exchange Commission. The Company is under no obligation to (and expressly disclaim any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. This announcement is for information only and does not constitute an offer or invitation to acquire or dispose of any securities or investment advice. The distribution of the announcement and/or issue of securities in certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes are required to inform themselves about and to observe such restrictions. DATASOURCE: BioProgress plc CONTACT: For further information please contact: BioProgress plc: Richard Trevillion, Chief Executive, Officer, Dan Farrow, Finance Director, +44-(0)1223-394250. Northbank Communications: Sue Charles, Katja Stout, Gemma Bradley, +44-(0)207-886-8150

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