RNS out today, SP up 18%.








Oxonica plc - Supply Agreement
RNS Number:7127H
Oxonica plc
16 August 2006


16 August 2006

Oxonica plc
Supply Agreement

Oxonica plc ('Oxonica') a leading international nanomaterials group, today
announces that it has reached agreement with Petrol Ofisi A.S., the leading
national oil company in Turkey with sales of US$8.8 billion in 2005, to supply
its Envirox(TM) fuel borne nanocatalyst, for use in diesel fuel across Petrol
Ofisi's nationwide distribution network. This agreement is the first of its kind
for Envirox(TM) and is in line with Oxonica's strategy of signing commercially
significant deals with major partners to access the volume market.

The agreement provides for an initial supply of Envirox(TM) which will be used
by Petrol Ofisi to evaluate market acceptance of the new enhanced fuel within
its national market and is expected to generate sales for Oxonica worth US$12.7
million this year. Following the marketing evaluation, Oxonica expects to be in
a position to indicate likely levels of ongoing demand in Q1 2007.

Envirox(TM) has been shown in field trials to reduce fuel consumption in diesel
engines with savings of 5 to 10% with commensurate reductions in carbon dioxide
(CO2). Envirox(TM) has also been shown to reduce particulate emissions by up to
15%.

In addition, Oxonica will be announcing on Wednesday 16 August the launch of a
collaboration with Petrol Ofisi and Oxford University to develop new catalysts
for the petrochemical industry.

Kevin Matthews, Chief Executive Officer of Oxonica plc, said:

'This deal is another major milestone for Envirox(TM). The initial order
provides a meaningful increase in Oxonica's revenues for the current year and a
successful nationwide product launch by Petrol Ofisi could lead to a significant
boost to Oxonica's sales and cash flow going forward. We are delivering on the
strategy we set out at the time of the IPO last summer and today's announcement
further demonstrates Oxonica's ability to deliver innovative commercial
solutions to major customers in international markets using its expertise in
nanomaterials.'

In addition to this announcement, the Board is pleased to report that trading
for the first half is in line with current expectations. Oxonica intends to
announce interim results for the half year ended 30 June 2006 on 18 September
2006.

For further information, please contact:

Oxonica plc Tel. 01865 856 700
Kevin Matthews, Chief Executive
Richard Clarke, Finance Director

Smithfield Consultants Tel. 020 7360 4900
Sara Musgrave
George Hudson


Notes to Editors

About Oxonica plc - www.oxonica.com

Oxonica (AIM: OXN.L) is one of the leading international nanomaterials groups
with products already launched into international markets and is listed in
London on the AIM market. It was spun-out from Oxford University in 1999 and
currently employs 56 professional staff. Oxonica's mission is to focus on the
development of innovative commercial solutions for international markets using
its expertise in the design and application of nanomaterials. It owns a
portfolio of demand driven products that offer substantial benefits to the
target markets of energy, healthcare, materials and security.

The Group currently has four operating divisions: Oxonica Energy, Oxonica
Healthcare, Oxonica Materials and Oxonica Security. Oxonica has already
launched products into international markets. Lead products include:

* Envirox(TM) Fuel Borne Nanocatalyst - a nanocatalyst improving fuel economy
and reducing emissions

* Optisol(TM) UV Absorber - a revolutionary photostable UV protection system
designed to optimise the performance of quality sunscreens and anti-premature
aging products

Oxonica is also active in searching for the next generation of products and is
already engaged in developing transformational detection technologies which will
enable a new generation of ultrasensitive multiplex diagnostic tools for the
clinical diagnostic life science and security markets. In addition, the company
is developing other UV absorber technologies into polymer systems and coatings,
based on similar technologies to that used in Optisol(TM).

Posted on the other side:


Gardener1 - 9 Oct'06 - 09:27 - 94 of 95


Positive article in the Mail on Sunday - heading "Oxonica: small but perfectly formed".
"For those willing to take a risk for the long term, Oxonica looks appealing. Like it's technology it is small but it's potential is huge. Buy "

The real money's to be had once that approval comes from the EPA in the States. Could take a while though.

71 mil looks a bit pricy for a company worth 16 mil NAV with its P&L account still showing losses; on the other hand if goldrush fever gets a grip the SP could rocket.

Mind you, that Petrol Ofisi deal should narrow the FY losses significantly.

I'm beginning to wish I had taken the plunge when I first started this thread!

soul

people always say they've missed it......

stock gone far enough IMHO until next oil deal announced but then that could be before the year end if we are lucky.

cannot understand how one of the food retailers have not signed up for this diesel product. They are falling over themselves to be the greenest. Until one does the jury will have to be out on whether co will really be a success. I can see why majors not interested -- BP would effectively sell 5%+ less diesel if they bought this product. Probably only able to up price/litre 1p (my guess). So it might save the environment but it won't save BP profits -- I wonder which the BP management are really more concerned about

You're right Confi, it would be a mistake to say I missed it at this early stage. Today I'm smiling about my success with SOLA - I'm up 36% in less than two months :o)

I'd say give it time re the food retailers. This is a new technology and will need a while to raise its profile.

Good point re the erosion of T/O, profits, etc. However, I seem to remember you made a point some weeks ago about things meeting in the middle price-wise, plus there is always first-mover advantage and the resultant likelihood of a price war to think about. Given that most of petrol stations' profits are made not on the forecourt but in the kiosk anyway, it may not be too much of an issue.

It may also be swings and roundabouts regarding how much fuel the majors actually sell. The additive will help existing resources stretch further, which is good; cheaper fuel on the other hand may encourage consumers to use more, so ironing out and decrease in turnover.

Ultimately I think market forces (and possibly legislation) will dictate that this kind of additive will gain acceptance.

Results look fine here

Key seems to be whether the oil additive is working in Turkey Compnay seems to think decision will be made in next few months

Still interesting but the VC holders must be getting bored

Haven't seen the SP yet, but I don't think the VC's will be getting bored. Boundless patience is a prerequisite. Besides, aren't they all busy trying to buy Boots and Sainsbury's?

By VC's mean't the current big holdes of the co. It's been listed a while, done little and hardly trades --- it might not be giving these guys enough short term.

Key will be the diesel additive -- if it works in Turkey then the institutions will want some of the action --- a placing by a current holder to a range of institutions would be good news. Until then its just us small guys playing

So the fuel additive dsoes not work then?

That's a massive set back for this co. Mkt cap is 50m and the closest part of the blue sky has just been completely clouded over.

With VC's still big holders and likely to be v disappointed put this share alongside ENTL in the bargepole category for some time

That is indeed a bit of a setback, but it should be noted that it is only with high-sulphur diesel that the product does not show a signficant saving. Low-sulphur diesel continues to show mch more substantial savings.

I have no financial involvement with this co but there is an aspect of "trials" that must not be forgotten....when drivers use company vehicles it is not unheard-of for them to do some private mileage, or take the scenic route etc.
However, if a trial is being conducted it is likely the driver will be aware of the additional kit being installed (although they should be blind to the test IMHO)...henceforth they will take the "Approved" route and maybe a more-steady pace since their timing/mileage is being monitored. Thus it would not be difficult to achieve a 10-20% improvement due to these "human-factors".
Naturally the trials will try to eliminate such issues, as well as any delay until the weather improves etc. etc. For these reasons it would be better to use identical vehicles with similar loads to be driven over the same course at the same time...not difficult to achieve if the load can be split between two otherwise similar vehicles. ((only this time you don't let the drivers know which has the "fuel-saving" device fitted and preferable put black tape over the fuel gauges AND then you swap-over the kit to eliminate driver-bias and any risk the vehicles are not the same!))

The trouble is that humans are probably more-variable than the technology, (or gadgets ),- furthermore Drivers will drift off-piste if Management doesn't keep an eagle-eye on their activities - 'tis the nature of the beast.

If the saving is as reported "...about 1%" - then that's NO deal, IMHO - you could better that improvement by increasing the tyre pressure (c 4%) or improve streamlining for motorway speeds (c.5-10%) and fitting a strong spring to the accelerator pedal will have similar effects (c.20%), although the journey time may increase a few %.

I'm really somewhat alarmed by this news, however, it is possible the tests were upset by the operators - one cannot eliminate human influence - especially those you "don't know" - but this may be being kind. Time will tell.

For my money the sp is pretty high (and there is a small debt) - there are other places I can invest with better chances.... where the sp is not-exactly factoring-in potential....like BTG, currently about the same money, yet I get the impression their chances are somewhat better, if not spectacular, at least spread over dozens of "technology" and healthcare arenas....at 20p I would invest, but above even 50p I'd buy Oxford Biomedica - Both [BGC/OXB]are full-list so no "time-risk" for CGT savings...with AIM you have to be certain the company won't dip over 2-years!
Oooo-ey! No, I don't feel that lucky - well not at current prices/news.
so, Watch it rocket....Doh!
Please DYOR, all above IMHO based on what I've read here.
Don't shoot.

Hangon, please read the RNS as if memory serves, the trial took place driving the trucks around the service road of the Turkish Formula One racing track.

This one looks very interesting ST.

Will have to do more research.

SP not doing much but not looked into underlying fundies yet.

GF, IMO this is a slow burner. Could be good if Envirox continues to gain a footing in the treatment of low-sulphur diesel (not to be confused with the problematic high-sulphur diesel!). now might be a good time to buy after the shock earlier in the week, but I would urge caution.

I agree with you Soul Traders...I think now is a good time to buy as over all I think this is a good share. I bought into OXN this morning. There was a great write up about OXN yesterday in SHARES MAG although I think they will be abit embarassed as they said buy at 134p and that 110p is not likely to be seen again!
Still I think yesterdays news was a minor setback and buying oportunity and over all this company has alot going for it.
Di
dyor etc

Lets not get too excited about this company, or overly pessimistic. Remember it hasnt made any money and any purchase of shares will be on the HOPE their products are successful. If they are then it could be a very good buy, but at the moment its a bit of a gamble

Cheers guys.

Im rather optomistic but looking for an entry point.

News below is a setback for OXN...need more trials before commiting to this.


Oxonica plc
28 March 2007

Oxonica plc

Initial Results from ENVIROX(TM) Track Trial in Turkey

Oxonica plc ('Oxonica') a leading international nanomaterials group, today
announces that it has received the initial results from the second data point
(30,000 km) of the ENVIROX(TM) track trial being carried out in Turkey on
Turkish, high-sulphur diesel fuel. The track trial is an extensive trial of 16
trucks that are representative of vehicles operating in the Turkish market. The
vehicles are being driven around the service road of the Formula One track in
Istanbul with fuel usage and mileage recorded and fuel efficiency calculated.


The initial data point of 20,000 km showed positive results of a 1-1.5% fuel
saving, which was in the range of management expectations at that stage of the
trial. The initial trial results from the second data point are currently
inconclusive and it has not been possible to identify whether there has been any
improvement in fuel economy. Further work will be required in order to clarify
the trial results and fully evaluate all aspects of the trial design to
determine whether there are any mitigating factors affecting the trial. Oxonica
continues to review the progress of the trial and subsequent results with Petrol
Ofisi and agree on next steps.


Despite the inconclusive second data point from the trial in Turkey, the Board
believes that there is a large body of evidence to support the view that
ENVIROX(TM) works effectively in a wide-range of operating conditions to reduce
fuel consumption and emissions. Extensive fleet trials in low-sulphur diesel
fuel, which is the predominant form of diesel used throughout Europe, Asia and
the USA have shown fuel savings of 5 - 11%.

Moreover, the Group's other activities in the areas of Healthcare, Security and
Materials continue to make good progress including a key technology development
in Healthcare expected to be announced on April 19th at the AACC Oakridge
Conference in St Louis, a key event for the diagnostics industry, and the
continued adoption of Optisol(TM) UV absorber by the market with it now being
used in 27 formulations, with sales in 9 countries.

Pinched from Greystone's TRAD thread, a tip from Shares Mag:

BUY - OXONICA (OXN:AIM) - 134p (STOP LOSS 107p)

Unlike most high-tech investments Oxonica is fairly low risk, as it has established its
technologies and is half-way to commercialising them, but high reward.


PDYOR - I am passing this on only for information's sake and not as a recommendation.

Actually, that tip looks like bad timing, as I guess it must have been published on the same day (28th March) that OXN announced that Envirox was no good for hi-sulphur diesel, cos the SP was at 134 on the 27th and has since dropped to 115 before recovering to 121 on Friday.