Strategy

Evolutec is an investment company under AIM Rules pending any further transaction.

Evolutec was originally founded as a biopharmaceutical company with the intention of developing novel therapeutic products from natural biological sources.

Initial success was not borne out by larger stage clinical trials and in early 2007 it was decided to change the business model of the Company. Following the purchase of further shares in the market by Gartmore Investment Management Limited (Gartmore) so that they became the largest shareholder in the Company, Gartmore proposed that Evolutec continues as a listed entity with a view to considering possible transactions which would involve reversing another business into Evolutec.

The regulatory team at AIM have confirmed that Evolutec will be classed as an investment company under the AIM Rules pending any further transaction.

The Board intend that the investment policy of Evolutec will be to seek a single investment, most probably of a UK or European business, in either the technology, healthcare or service related sectors. The Board believes that it, together with Gartmore, will have the necessary experience in order to evaluate any potential acquisitions and any proposed acquisition will be subject to shareholder approval.

If no transaction is announced prior to the next annual general meeting of the Company, the Board intends to propose a resolution at such meeting for shareholders to consider in relation to the future strategy of the Company.

If any transaction is announced, such a transaction is likely to be a reverse takeover and would be conditional on shareholder approval. Evolutec will continue to remain as a company listed on AIM, a market operated by the London Stock Exchange plc.