05 July 2011

Trading Update

Animalcare Group plc (AIM: ANCR), a leading supplier of veterinary medicines, provides a pre-close trading statement ahead of the publication of its results for the year to 30 June 2011.

Revenue for the year ended 30 June 2011 was approximately 5% higher than the same period last year. The four new products launched in the year, along with those launched in late 2009-10, contributed substantially to this growth, which was also underpinned by a strong performance in our existing ranges, notably fluid therapy and database services.

Earnings from continuing operations will again show a good progression from the same period last year are expected to be in line with market expectations.

Animalcare also announces that it has received notification from the Swedish pharmaceutical contract manufacturing group Recipharm that they will close their steriles production unit at their Recipharm Ashton facility ("Ashton") with immediate effect. Due to ongoing production issues this unit had originally been scheduled to close in June 2012.

Ashton produces the 1ml ampoule version of Animalcare's buprenorphine based analgesic, Buprecare. This is the only product supplied to Animalcare from Ashton.

Animalcare was in the process of establishing alternative manufacturing for Buprecare ahead of the scheduled closure of Ashton steriles production. Efforts are already being made to accelerate the plans already in place to switch production of the Buprecare 1ml ampoule product to an alternative supplier. Unfortunately the premature closure means that there now will be a period during which Animalcare will be unable to supply the 1ml ampoule presentation of Buprecare to the UK market. The supply position for the European markets is stronger and any disruption is expected to be minor.

Buprecare 1ml ampoules represented approximately £650,000 of sales in the UK in the financial year to June 30 2011. The maximum at risk level of sales in 2011/12 are calculated to be not more than £450,000 with the likely effect being somewhat less than this value. Whilst this premature closure will impact

the 2011/12 results, the Board is confident that the measures being taken will limit even further the financial impact of the closure.

Discussions are ongoing with Recipharm regarding the consequences of the immediate cessation of contracted supply and further updates will be announced as appropriate.

For further information:

Animalcare Group plc Stephen Wildridge (Chief Executive Officer)

Tel: 01904 487 601

Brewin Dolphin (NOMAD)

Neil Baldwin Tel: 0845 213 4726

Walbrook PR Ltd Tel: 020 7933 8780

Paul McManus paul.mcmanus@walbrookpr.com

Fiona Henson fiona.henson@walbrookpr.com

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