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Vectura Group plc - Preliminary Results for the year ended 31 March 2008

Strong financial performance and good clinical progress

Chippenham, UK– 22 May 2008: Vectura Group plc (LSE: VEC) ("Vectura"), the inhaled product development company, today announces its preliminary results for the year ended 31 March 2008.

Financial Highlights

• Cash generative year with net cash inflow of £3.6 million* (2006/07: net cash burn £6.3 million*) following a full year contribution from the Innovata business, with strong revenues and cost savings in excess of expectations
• Total revenues increased by 80% to £25.2 million (2006/07: £14.1 million)
• Gross profit up by 94% to £20.8 million (2006/07: £10.8 million)
• Investment in research and development up by 75% to £29.7 million (2006/07: £17.0 million)
• Cash of £78.8 million at 31 March 2008 (31 March 2007: £77.5 million)

Operational & Product Highlights

• Significant progress across Vectura's key respiratory programmes
  • VR315 for asthma - achievement of milestone (partnered with major generic company) - €3 million received October 2007
  • Boehringer Ingelheim - achievement of milestoneon collaboration to develop a new dry powder inhaler (DPI)- €10 million cash payment, and an additional €5 million equity investment received in December 2007
  • NVA237 and QVA149 for COPD (partnered with Novartis) - initiation of five new Phase II clinical studies
  • VR632 for asthma – deal worth €15.5 million plus royalties to develop a second combination product for asthma with Vectura's collaboration partner for VR315, announced in December 2007
• Successful outcomes from clinical studies
  • VR147 for migraine - completion of early proof of concept study
  • VR040 for Parkinson's disease - completion of second Phase II study
  • VR004 for erectile dysfunction - completion of second Phase IIb study
  • VR776 for premature ejaculation - completion of Phase IIa study
  • Completion of Phase I glucose clamp study
• Move from AIM to the Official List of the London Stock Exchange in July 2007

Dr Chris Blackwell, Chief Executive of Vectura, commented:

"Vectura has made great progress over the past twelve months, a year in which we achieved major pipeline and business milestones, which together advance the Company towards our vision to build a leading speciality pharmaceutical company. We also achieved cash generation during the year, while at the same time increasing our investment in development activities by 75% to £29.7 million. Our strong cash position validates the exceptional fit of the profitable Innovata business with Vectura product development strategy as we progress towards our goal of becoming cash generative on a sustainable basis. We look forward to the initiation of the key registration trials on our asthma and COPD programmes."

- Ends -

Chris Blackwell and Chief Financial Officer Anne Hyland will discuss the Company's results at an analyst/investor presentation and conference call today at 9:30 a.m. GMT. For further details please contact Claire Rowell at Financial Dynamics on +44(0)207 2697285.

Enquiries:

Notes for Editors:

About Vectura
Vectura Group plc is a product development company focused on the development of a range of inhaled therapies principally for the treatment of respiratory diseases. Vectura develops products to treat respiratory diseases such as asthma, chronic obstructive pulmonary disease (COPD) and cystic fibrosis, a market which is forecast to double over the next ten years from $23 billion in 2007 to $46 billion by 2017. Vectura also develops products for non-respiratory diseases where optimised delivery via the lungs could provide significant benefits, such as a rapid onset of action, improved efficacy and improved tolerability compared with current therapies.

Vectura has eight products marketed by its partners and a portfolio of drugs in clinical and pre-clinical development, some of which have been licensed to major pharmaceutical companies. The Company seeks to develop certain programmes further through development to optimise value through licensing at a later stage. Vectura also offers its formulation and inhalation technologies to other pharmaceutical companies on a licensing basis where this complements Vectura's business strategy.

Vectura has development collaborations with several pharmaceutical companies including Boehringer Ingelheim, Chiesi, Novartis and Sandoz (the generics arm of Novartis). The acquisition of Innovata in January 2007 brought established alliances with a number of additional companies, such as Baxter, GlaxoSmithKline (GSK), Merck Generics (part of Mylan Inc), UCB and Otsuka, as well as providing revenue streams, complementary products and critical mass. For further information, please visit Vectura's website at www.vectura.com

Forward-Looking Statements
This press release contains "forward-looking statements", including statements about the discovery, development and commercialisation of products. Various risks may cause Vectura's actual results to differ materially from those expressed or implied by the forward-looking statements, including adverse results in clinical development programmes; failure to obtain patent protection for inventions; commercial limitations imposed by patents owned or controlled by third parties; dependence upon strategic alliance partners to develop and commercialise products and services; difficulties or delays in obtaining regulatory approvals to market products and services resulting from development efforts; the requirement for substantial funding to conduct research and development and to expand commercialisation activities; and product initiatives by competitors. As a result of these factors, prospective investors are cautioned not to rely on any forward-looking statement. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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