Bioprogress is a stock I have been in and out of quite a few times since it floated in May but not much mention here on the Investors' Room. Does anyone else follow this stock. I see it is up 1.5p today and a few good buyers seem to have appeared.

My position is clear, a paper loss of 35% at the moment. This is and always was a long term play and very risky one at that. Hope we have some good news soon. I hope to be still holding this one in a years time if they dont go broke in the meantime.

Don't you think the news about citadel and the convertible bonds are having an effect on this share?

It was discussed in detail around lunchtime on this thread, Lorna. Its a possibility, but there is a raft of issues I think pulling one way and another.

And this will be the main one for tomorrow, silence has broken!! ...Trading update..
http://moneyam.uk-wire.com/cgi-bin/articles/200411181705264141F.html

BioProgress PLC
18 November 2004


Press Release 18 November 2004

BioProgress plc

('BioProgress' or 'the Company')

Trading Update


BioProgress plc (AIM: BPRG; NASDAQ: BPRG), the provider of innovative delivery
mechanisms for the pharmaceutical oral dosage markets, has noted the recent
volatility in its share price and as a result the Board of BioProgress feel that
it is appropriate to issue a trading update.

Overview

Work is proceeding well with all our licensees and potential licensees including
both Wyeth and FMC BioPolymer, and the potential market for SOLULEAVES(TM)
products continues to grow strongly. Updates on these areas, as well as the
Stanelco Fibre Optics Limited litigation and trading at BioTec Films, are
provided below.

The Company anticipates a slightly reduced level of losses in the second half of
the year compared to the pre-tax loss of 3.8 million reported in the Company's
interim results, resulting in an anticipated loss for 2004 of approaching 7
million. This loss includes exceptionally high legal, consultancy and other
costs that are not expected to reoccur in subsequent years amounting to
approximately 3.3 million for the year as a whole. Further substantial
exceptional legal and professional costs relating to the Stanelco Fibre Optics
Limited case have continued in the second half of the year. Administrative
expenses were 4.4 million in the first half (2003: 0.4m) and are expected to
be 7.5 million for the full year.

BioProgress expects to enter 2005 with in excess of 15 million cash on the
balance sheet and the Company currently expects to meet its stated expectation
of $50 million revenues between 2004 and 2006 from in-the-mouth dissolving
films.

Wyeth

Further to the Company's announcement in June 2004 Wyeth has now completed its
initial due diligence process. This comprised of four elements: A review by
Wyeth of the BioProgress XGEL(TM) and SWOLLO(TM) Intellectual Property (IP) and
patent status to ensure there was freedom to operate a protectable position
under any future licensing agreement. A review of Harro Hoefliger and an
assessment of their capability and competence to build and supply SWOLLO(TM)
machines. An inspection and review of the BioTec Films facility in Tampa
including the supervision of film manufacture to satisfy themselves that the
BioTec Films facility processes and controls were of an appropriate standard and
finally that BioProgress had credible plans to scale up production and provide
multi location production capability by 2006. This initial extensive due
diligence is now satisfactorily completed. A product development programme has
been continuing in parallel and detailed discussions on technology licensing are
about to commence. For commercial reasons the specific product areas must
remain confidential.

FMC BioPolymer

Work with FMC BioPolymer ('FMC') on NROBETM is proceeding well with
comprehensive tests underway on a scale version of the machine that has been
built by Harro Hoefliger. This first machine is designed to demonstrate the
technology and generate valid data on specific pharmaceutical products which can
be used in product license applications. This first machine will be extensively
run, thoroughly tested and commissioned and then installed in the Farmasierra
facility in Madrid, Spain, in early 2005. Farmasierra is FMC's first choice
European pharmaceutical contract manufacturer and the installation of the first
machine will facilitate a programme of pharmaceutical product development in the
NROBETM technology. It is anticipated that the first full scale NROBETM machine
will then be ordered by FMC and delivered to Farmasierra during 2005 to enable
full commercial production to commence.

Robin Mitchell, Business Director of the FMC BioPolymer business unit that is
focusing on the commercialisation of the NROBETM technology, said: 'FMC is very
pleased with the progress of the NROBETM project which is on track and now
entering a particularly exciting phase as we test a range of pharmaceutical
products on the first NROBETM machine. The response to the technology following
research with potential customers has been extremely encouraging.'

Stanelco Fibre Optics Limited litigation

Costs were awarded to BioProgress following the successful outcome of the
Stanelco litigation and 181,000 interim costs have now been received from
Stanelco. The insurance cover secured by BioProgress will also underwrite other
elements of the costs, damages are yet to be assessed. The remaining costs and
any damages will now not be received until after the final hearing which will
now be after the end of the current financial year. Further substantial
exceptional legal and professional costs relating to the case have continued in
the second half of the year and no provision or accrual in the accounts is
allowable as the courts award of costs and damages are yet to be quantified so
will not make any contribution in the current year.

BioTec Films

The primary objective in acquiring the BioTec Film business (formerly certain
assets of Aquafilm LLC) was to provide BioProgress with a film manufacturing
facility quickly to satisfy licensees like FMC and potential licensees like
Wyeth that BioProgress could produce and supply film. This is an essential
element to enable the delivery of the real value in the business, the generation
of film revenues for SWOLLO(TM), NROBE(TM), TABWRAP(TM), WAFERTAB(TM) and high
value pharmaceutical applications for SOLULEAVES(TM).

The acquisition of Aquafilm in addition to its primary purpose of providing a
fast track film production capability had the additional attraction of short
term revenues and profits. At the time of the acquisition the management of
Aquafilm could show customers and orders which supported forecasts of revenues
of 4.5 million and a profit of 0.5 million in 2004.

A comprehensive review of the business and customer base took place following
the acquisition. This resulted in a number of products and customers being
dropped either because they were unprofitable or because the type of business
did not fit with the BioProgress ethical policy, notably in the area of smoking
related products.

In addition, it became necessary, in order to accelerate the process of
commercialisation of NROBE(TM), SWOLLO(TM) and the other core BioProgress dosage
form technologies, including production trials during the process of due
diligence, to dedicate significant amounts of production line time and
production capacity in the second half of 2004 away from revenue generating
third party supplied products to BioProgress encapsulation technology films.

Significant development time was also allocated to reformulation and production
testing of existing profitable US products, replacing certain ingredients
approved in the US but not in Europe to enable the sales team led by Alan
Clements to fulfil demand in the strongly growing European markets for
in-the-mouth dissolving films.

The consequences of the diversion of plant capacity to these activities linked
with the loss of capacity due to plant shutdowns caused by no less than three
hurricanes. Is that revenues from BioTec Films are anticipated now for 2004 to
be in the region of 2.2 million and BioTec films will show a loss of around
1 million in 2004.

Outlook

BioProgress expects to enter 2005 with in excess of 15 million cash on the
balance sheet. Excluding exceptionals the annual cash burn is around 3 million
if BioTec Films and Custom Pharmaceuticals are included; this is expected to
rise by 2006 to 5 million.

There is a strong order book for BioTec Films for 2005 which includes Colgate
whose Maxfresh toothpaste they have stated is performing exceptionally well.
AXM Pharmaceuticals who will begin developing the Chinese market in 2005 and a
number of anticipated significant product introductions into the European market
following the reformulation work undertaken in 2004. There will also be several
new customers, details of which we expect to announce during the next few weeks,
who will also be contributing to revenues in 2005. The market for the
SOLULEAVES(TM) products continues to grow strongly, particularly in Europe.

With the additional production capacity coming available through Custom
Pharmaceuticals in 2005, the Company currently expects to meet its stated
expectation of $50 million revenues between 2004 and 2006 from in-the-mouth
dissolving films.

Graham Hind, Chief Executive of BioProgress plc, said: 'Companies whose business
model, like BioProgress, is based primarily on licensing agreements to generate
revenues and profits are always dependent on their licensees in terms of the
rate at which the technologies are commercialised. The licensee looks at the
agreement as an eighteen to twenty year project and their corporate culture is
often cautious wishing to research, analyse and in the early period of the
license agreement, try to get the foundations right. This is frustrating for
some of our Shareholders who like to see short term results.

'It is however the successful commercialisation of our licensing agreements in
partnership with major global companies, with the potential to revolutionise a
global industry, which is the real value of this Company. The Board must take
a long term view and if that means sacrificing some short term revenues and
profits from the BioTec Films business, in order to further or accelerate the
development of our core technologies or help create further licensing
opportunities, that is clearly what should be done.

'The successful litigation against Stanelco has been at a significant
exceptional cost which will have a major impact on the Company's 2004 results.
However the benefits of the litigation against Stanelco extend beyond the
anticipated highly positive damages and costs financial reward. The BioProgress
business is based on the creation and protection of intellectual property and
this court case sends out an important message that BioProgress is serious about
protecting its intellectual property and looking after the interests of its
licensees and Shareholders.

'The recently announced LOCUM strategy will significantly reduce the costs of
adding additional film production capacity. I would also like to take this
opportunity to reiterate my personal commitment to BioProgress going forward and
that it is my intention to lead the Company to deliver our stated strategy.

'The Company is continuing to implement its business model and strengthen the
management team in certain key areas, the Board is pleased about progress and
the long term prospects continue to be excellent.'


- Ends -


Forward Looking Information.

The Ordinary Shares of BioProgress plc are registered under the US Securities
and Exchange Act of 1934. This announcement contains certain 'forward-looking
statements' within the meaning of the Private Securities Litigation Reform Act
of 1995. 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. An important factor that could cause
the statements made in this release to differ is the possible impact of
fluctuating exchange rates for the pounds sterling and the U.S. dollar. Other
important factors pertinent to the business of the company that could cause
actual results to differ are discussed under the caption 'Forward-Looking
Statements' in the Company's Form 20-F Annual Report for the year ended December
31, 2003 and in subsequent filings. 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.


For further information:
BioProgress plc

Graham Hind, Chief Executive Tel: +44 (0) 1354 655674

grahamhind@bioprogress.com

www.bioprogress.com


UK Media enquiries:
Abchurch

Henry Harrison-Topham / Heather Salmond Tel: +44 (0) 20 7398 7700

heather.salmond@abchurch-group.com

www.abchurch-group.com


US Investor enquiries:
Taylor Rafferty

Andrew Saunders Tel: +1 212 889 4350

andrew.saunders@taylor-rafferty.com

www.taylor-rafferty.com



Notes to editors:

BioProgress listed on AIM in May 2003 and on NASDAQ in October 2004, and is
engaged in the research, development, and design of patented encapsulation
systems that use water soluble and biodegradable films for the dietary
supplement, pharmaceutical and other sectors. The Company's portfolio comprises
over 80 patents granted or in application within 24 patent families and has
product development agreements and strategic alliances with several global
companies. BioProgress aims to provide a cost effective and animal-free
encapsulation process for pharmaceutical drugs in liquids, tablets and powders,
thereby addressing the needs of the entire market for oral dosage forms while
providing novel delivery mechanisms not possible with traditional processes.

The Company has also developed patented and licensed the world's first flushable
ostomy pouch that offers a newly enhanced quality of life not previously
possible for the end user. Market research shows the global ostomy market to be
worth $1 billion annually.

The Company's business model provides it with several significant revenue
streams including sales of encapsulating machines and film, plus licence and
fees for research development services.


This information is provided by RNS
The company news service from the London Stock Exchange

At last, should steady the ship, no where is that extra cash...

Good. Uncertainty cleared.

A short term profit warning; a long term "everything's on course" statement. Also a poke in the eye for the short term merchants - good one!

As it says, 2004 results will look a mess. That was a given anyway but in 2005 the damages from Stanelco could be millions and the insurance will pay some costs not reimbursed by Stanelco. As a side issue that is pure 2005 profit before any normal business revenues.

As far as tomorrow is concerned, will the clearing of uncertainties bring back the buyers or will the short term additional losses cause further sell-off? The recent drop of 50% must have discounted something? Who knows, and don't care! The statement says the long term plans are ongoing and that is good enough for me. Let the markets eat their fill.

This can only be very positive and the short term impact was already known. The main thing is that the company has removed any major uncertainty, both commercially and organisationally. Why it took 2 days of extreme volatility to come out is more debatable but overall a comprehensive and hopefully decsisve response.

Well i for one are a happy with that,i did not think this bprg was as volatile as this . As to tomorrow where do we go, i will leave that to others.

dd-what's fair value? buy buy buy ;-) dyor,nag etc

Emp,,real value/future value.It seems to me the people at the top dont know themselves,,lets hope its not a psion in disguise ??

It's gonna be a Frantic Friday - to follow a Thunderous Thursday and a Worrying Wednesday - what must the nutters over the road be doing with such a sound and reasoned RNS - ?????

Psion - yes. PON moved like this in 1997 when all its new stuff was to be the next big thing. Went up to 5, back down to 2 and all sorts. Two years later it hit 70 before collapsing. My take on BPRG is that we are at the 1997 stage in its development......fun to find out anyway!

Spot on bones,at least we have a product.

And yes i made a couple of pound,,and took a risk.

At least this news afterhours has created a bit of volume in the ADR's across the pond... :-)
Glad I closed my long at the death. Because I havent a clue where it will open. Probably wont get a good feel until some volume kicks in, mid morning. Should be fun though.

Can't say I'm too enthused by the statement.

The positives are a given and well known, though things appear more toned down than previously, particularly the quote from the CEO regarding generating revenues and profits from licensing and the timeframe involved. He also appears to be losing patience with the nutters. "This is frustrating for some of our Shareholders who like to see short term results." could be construed in several ways, but "leave me alone" is how I interpret it, politely!!

As for the negatives, there's a few too many for my liking. Markets don't like exceptional charges and they don't like litigation dragging on. I'm not sure I like the cash/cashburn not including exceptionals either. I don't like "significant exceptional cost" in relation to SEO. 15m doesn't stretch far with this, the cashburn expected and the likely need for new plant to service these big contracts.

Gawd knows what we'll see tomorrow, but I'm not overly confident it'll recoup the last few days crash any time soon.

Bones - you'll not worry as you're looking 3,4,5 years hence, but you are not in the majority I believe!! ;-))

Hmm, his comments, frustrating for shareholders who like to see short term results..

Don't think many shareholders like having their investment pluge rapidly by 50% in a few weeks... and to say that is too much to ask is ridiculous

Bones. "Uncertainty cleared". Does that mean one can see the uncertainty clearly!!

Sorry!!

I would like to buy more but my holding in proportion to my total holdings advises me. Good luck to the buyers, if they are considering buying to-morrow, but remember it take longer to build a price than to demolish.

Good Hunting. As long as it is not for foxes.

Emp,fair value. Well call it what you will over the last 12 months say , there has been roughly a 1 difference between high/low sp , people where going for this in feb and calling the turn in march big time , same scenario aug calling the turn still at presant . Even on both turns people where bottom feeding looking for value {limiting there risk on the downward spiral all the time it has fallen further}they where not to know that,,but they all new the situation,,they where looking at .
You can look at ta,fundamentals,what little there is on bprg and what do you find not a lot.
What about the poor sods that bought above 1.20,,and they where happy with that price .Hindsight its a wonderful thing & i am sure you know more about bprg than myself & i respect you for that,,but thats not to say you no better,,be lucky /dave..

Goodluck gh.

Jumpin , he's allright though , didn't he flog a shedload a few weeks ago ?

Al , "exceptional items" always make me laugh , check out the number of companies who year after year hide behind "exceptional items". Next year's exceptional item will probably be "start up costs" year after "expansion costs" and then "redundancy costs".