Plant Impact

Plant Impact has been pursuing its strategy of forming strategic partnerships to accelerate the commercialisation of its proven technologies. This includes a significant agreement with Arysta LifeScience (February 2010) for the evaluation, development and distribution of crop nutrient products.

Evaluation, development and distribution agreements have also been made with Agrimatco (September 2010) and Cebeco (November 2010). These three well-chosen strategic partners can be expected to hasten Plant Impact‟s commercialisation timeline.

A DCF analysis assuming a 20% discount rate and a conservative long term growth rate of 1% yields a target price of 58p, a modest reduction from our former target of 60p.

The environmentally friendly pesticide BugOil® has been licensed to Arysta LifeScience, with sales expected soon after completing the regulatory approval process.

This year has seen successful trial results and the commencement of significant new field trials in broad acre and arable crops. With an expanding number of distributors and key partnerships, the company is well positioned to address multi-billion dollar markets.

Arysta LifeScience has significantly expanded its relationship, extending Plant Impact's territorial coverage from 24 to 52 countries.

Specialists in plant stress relief eg temperature, salinity, drought and light

Milestone payments drive revenues up sharply in full year results

Well positioned to benefit in the sizeable market for yield enhancement

Specialists in plant stress relief and producers of ecologically friendly crop products

Potato production  a huge global market: field trial results show substantial increase in yield and numbers grown

Trading update reports results likely to be in line with management expectations

We retain target fair value of 60p / share versus current 23p

Proving model of revenues from both licensing and direct sales

Well placed to help agricultural industry meet future requirements

Medium term fair value per share still seen materially above current levels at 60p

The BugOil® licensee has been named as Arysta LifeScience. Signature of the deal underpins future earnings prospects and is a major endorsement of Plant Impact's research. We have raised our medium term price target to 60p.

'Smart' agricultural technologies set to capitalise on pressures in Global food resources

Strong portfolio of products and IP

Letter of intent signed for distribution of BugOil

Potential for sharp increase in valuation on subsequent licensing