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).

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.

I'm not sure anyone should be paying over 1 for an AIM share, indeed I dislike anything over 25p and certainly over 50p...unless there is something supporting it like Stanley Gibbons, or any number of FTSE 250 where the turnover and profits are known to be so.

What concerns me is that the recent test was done at all. Surely as you are driving down the Turkish M1 you will notice your fuel consumption isn't making it? So why go to the trouble of trials which are reported in Public? A relativly simple trial can be conducted by the Execs...so one has to conclude they did and the advantage is small...so small no-one spotted it wasn't there.
If a technology is to be accepted, then it must work and be obvious it works. Cars fitted with turbos perform better than ones without - fact and you only have to drive round the block to feel the difference. Later-on some trials will sort out the figures but fundamentally you know it's a Go-er.
If this stock was much lower, I feel a lot better cosseted, ie a greater safety-margin. At these prices IMHO (and I'm often wrong) it is too high and I'd put my money into something with a better risk/reward...since I suspect all the value is in the OXN-price. ...These were nearly 1.50, - that's about a quarter of LLOY which pays out 7% dividend.....

From the Times - April 9, 2007

Double blow for UK nanotech company.
James Doran in New York

The future of one of Britains leading nanotechnology companies is in doubt amid a legal battle over one of its key products and the near-collapse of its biggest contract with a national oil and gas company.

Oxonica, a technology company listed on the Alternative Investment Market (AIM), makes Envirox a product designed to boost the efficiency of diesel fuel. Envirox is used in the fleet of buses operated by Stagecoach, the British national bus company, which also owns two million shares in Oxonica. The nanotechnology company is also one of the stable backed by Richard Farleigh, the Australian businessman and star of BBC2s Dragons Den.

It has emerged that Envirox is at the centre of a legal dispute between Oxonica and Neuftec, a company based in the Dominican Republic that claims to have invented the fuel additive. Oxonica has filed a patents suit in Londons High Court to protect itself against the claims. Neuftec has said that it will fight the suit and believes that the British firm is using its technology unlawfully.

Envirox, while just one of Oxonicas growing stable of nanotechnology products, is its most significant revenue driver.

Kevin Matthews, the chief executive of Oxonica, told The Times that the dispute with Neuftec was minor. Intellectual property disputes like this are commonplace in nanotechnology, he said. But he urged Neuftec to come to the negotiating table.

Ronen Hazarika, the founder of Neuftec, said that any settlement would have to be substantial.

To compound the problems with Neuftec, Oxonica also faces losing its biggest Envirox contract a deal worth more than $12 million (6.1 million) from Petrol Ofisi, the Turkish national oil and gas company. Oxonica signed the Ofisi deal last year, which sent annual revenues soaring from 1.2 million to more than 10 million.

Last week Oxonicas shares fell more than 12 per cent on the AIM as it revealed that tests using Envirox in diesel engines in Turkey were disappointing. Oxonica claimed at the time that further tests had to be run, but Mr Matthews told The Times that the future of the Turkish deal looked bleak.

It doesn#t look good, does it? The Co reaction after some delay is to put many staff on notice - you'd expect them to be saying the trials were scuppered because - - - and set a time for new trials, or an improved additive etc.....
Then there is the Patent issue - it may be opportunistic, OR it could be a serious blow - does anyone (here) have a view?
As I suggested earlier, I think this sp is fully valued and it wouldn't surprise me to see a halving, until some resolution is clear and Future progress well in-place.

Hmmm I'm glad I only held OXN for a week...I made 10% profit and soon as it started to drop I bailed out double quick...a good move I think.
Di

Agree Dynamite and well done not to lose the lot! I think these small Aim co's are vastly overpriced - the slightest thing makes them tumble as MM's try to avoid the goey-stuff sticking to them. At 25p I'd be much happier.

When is it coming out of suspension? I believe OXN was a BUY in Shares mag.