Press release: 13 April 2010 Cleantech company, PhosphonicS, raises 3.

5 million
New funding will accelerate launch of precious metal recovery products

PhosphonicS, a spin out from Queen Mary University of London which uses proprietary chemistry to make novel materials has secured second round financing of 3.5m (US$5.75m).

The investment was led by Seventure Partners with additional participation from existing backers Regents Park Partners, a LBS venture capital fund, and private investors.

The new capital will be used principally to fund the global market development of a range of precious metal catalyst recovery products. Currently these extremely expensive metals such as platinum, rhodium and palladium are lost in dilute, low parts per million waste streams.

PhosphonicS new precious metal scavenger products make economic recovery of these valuable metals possible thereby eliminating waste and improving process economics.

Oxford, 13th April 2010 Phosphonics announced today that it has received an additional 3.5m (US$5.75m) million funding. This new capital will allow the company to expand its core team, accelerate the launch of the precious metal scavenger product range in numerous of international industrial markets, and continue based on the the development further applications

companys proprietary chemistry to make functionalised silicas.

This second round funding was led by pan-European venture capital firm Seventure Partners. This is the first time that Seventure has invested in the UK. Existing investors participated in the round. "The success of this funding round is a great vote of confidence in our unique technology and the dedication and enthusiasm of the team that has been developing since the company was spun out of Queen Mary University of London," said David Astles, PhosphonicS' CEO. "Our most recent results from successful plant scale trials clearly demonstrate the potential of our technology and have caught the interest of customers and potential partners throughout our target markets. We are very excited by the prospects and look forward to building the precious metal recovery business and new applications for our materials." Nick Cross, Chairman, said "With this new financing we will be able to accelerate the commercial development of our proprietary functional silica chemistry platform. It is very encouraging to have secured investment from a new value-add investor, such as Seventure when venture capital funding in the UK is so very scarce. Seventure General Partner, Isabelle de Cremoux, said "PhosphonicS is an exciting company based around a novel chemistry platform. The company has already sold its scavengers commercially. With technology opportunity and for market us in potential the already validated through is customer traction, PhosphonicS represents a compelling investment Cleantech area. PhosphonicS Seventures first investment in the UK and we look forward to working with David and other members of this entrepreneurial executive team."
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Iain Wilcock of Seventure will join PhosphonicS Board of Directors. Wilcock comes to PhosphonicS with extensive experience of Healthcare and Cleantech investing. He has previously served as a non-executive director of a number of companies, including Avidex, Oxxon Therapeutics, Xention, and Vivacta. He also represents Seventure on the Board of BiancaMed, Dublin. ENDS
For more information contact PhosphonicS, Margaret Henry, PR Consultant, Tel: +44 (0)1865 811199 Email: m.henry@oxin.co.uk Deal advisor list and photos available on request please contact Margaret Henry Seventure, Isabelle de Cremoux, Partner, Tel: +33 1 58192272; Iain Wilcock, Tel: +44 (0)7889 433739 Email: iain.wilcock@mac.com

Editors Notes
About PhosphonicS Ltd PhosphonicS is a CleanTech company, deploying novel technology to recover Precious Metals from process, waste and effluent streams. The company provides industrial customers with solutions to recover traces of valuable Precious Metals more effectively than conventional technologies currently in use. The use of PhosphonicS technology offers significant financial and environmental benefits to industrial end users and metal refiners. PhosphonicS materials are also being applied as next-generation metal and organic scavengers in the pharmaceutical, fine and speciality chemical industries for product purification purposes. Our materials are used to purify high value chemical products. Materials are available for Discovery Medicinal Chemistry through Process (PRD) to full Process-scale and Manufacturing deployment. The company also has a range of novel solid phase catalysts for petrochemical and fine chemical applications, offering industry the benefits of cleaner and greener processes. PhosphonicS offers a highly responsive problem screening service, offering rapid solutions to difficult recovery, purification and catalysis problems. http://www.phosphonics.com/ 3

About Seventure Partners As one of the leading venture capital firms in Europe, Seventure manages 500m and has being investing since 1997 in innovative businesses with high growth potential in Information and Communication Technologies and in Life Sciences. The Life Sciences team invests all over Europe. Its four preferred sectors are Biotech & Pharmaceuticals, Medtech, Industrial Biotech & Cleantech, and Lifestyle Healthcare & nutrition. A typical investment ranges from 500k to 10m per round, up to 20m per company, from early to later stage. Seventure is a subsidiary of Natixis Private Equity, the asset management company of Natixis, with over 4.2b in private equity investments. www.seventure.fr