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).

Falls to 57p
-Now back from suspension but with an RNS that tells it like it is! Cash position enough to keep advisors happy and turnover just sufficient to provide meals for Directors. Oh dear!
This is worse (dare I say) than I could have imagined, but I shouldn't be that surprised - the facts appear to be that the fuel-savings are not spectacular, otherwise the likes of Big Retailers would already be using it......ie an overnight success!.
Looks like a fund-raising will follow, with Retail Investors at the end of the queue (well, not at all, I guess). Who will pitch-in at 25p?
This is like a firesale with the fire still raging! Yikes!
When (er, IF), this is over, then may be the time to look again - but at the earlier prices I would have preferred something like BTG (similar money, with wrecks wrung out)....
OXN at 25p? there is a better chance of some uplift - - - but watch that dilution......it may be that "at 25p" you could be paying the equiv. of 50p (ie at today's share-density)....
Yikes! It just gets worse.

Shares mag was totally wrong in advising a buy at 134p a few weeks ago. Now 50p. What a bummer.

Agreed, and I never understand why publications wait for a share to rise 100% or even 200% - and THEN tell us to buy - I'm like the country bumpkin: - "I don't want to ..read-about Wicked Orgies the townsfolk are having..."
" I want to BE there!"
All publications get it wrong and maybe Shares were swayed by Richard - of "Dragon's Den" who has an investment in OXN I read somewhere.

That is why we have to do our own research and don't always trust the Shares or Investors Chronicles magazine.

MM playing games - as I read it Directors have bought less than 1k-worth of shares at 44p - and the sp rises like it's rocket-propelled....I expect a decline until we read about a Review of Operations, cash position, Contracts/Research still in play, etc. etc.
At todays price the news should already be out...yet I am amazed by the silence.
DYOR

Now OXN is 24.5p...biggest bummer of the year.

Well they couldnt have released better news today. Suggests the market could be huge for OXN's Envirox, Could be a buy again but I wouldn't risk buying over the next few weeks as I dont know whether the jump today has been over the top or is reflecting the quality of the news, re. new 'major' distribution agreements and continuing sucessful trials across Europe.

You still in ST? Just re-read the RNS and this could really be worth getting on-board before there next results, they havent talked any figures yet which the half year's will have to show and they could be sizeable. The value of the co. has just doubled in one morning though so best watch any profit taking that could tear down the sp

120% rise because it saves 5% fuel - doesn't seem like a sure-fire fuel-saver to me....still anyone that bought recently will be very pleased with this jump.

It will take a few more customers ( and maybe a greater economy-improvement IMHO), to get this back to 1.20 . . . which was always fully priced IMHO
LLOY is only 4 after todays 7% rise and the yield is c.9% - so don't pay too much for this. . . .
Directors buying 50k-worth each would help.
I don't hold.
EDIT Feb08-(2009?). Pse note LLOY is now (52p) IMHO close to Bankrupt (odd term), due to a childish behaviour wanting to be bigger than everyone else, - buy buying HBOS before they realised ( but shareholders did!) that HBOS was a timebomb....by comparison OXN at 21p is quite refreshing!

EDIT (12Mch09)- what a difference a Year makes! - LLOY is now in deep trouble abt. 44p...and OXN about 11p-ish.....I wonder if LLOY is the better multi-bagger? Oh dear.
EDIT(30Sept09) - 3.3p mid - - - oh deary me

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