Cobra Biomanufacturing Plc ("Cobra" or "the Group" or "the Company")

Response to the Mandatory Cash Offer by Recipharm AB ("Recipharm")

In response to the announcement issued on 16 December 2009 by Recipharm in relation to a mandatory cash offer for the Company at 2.25p per ordinary share ("the Recipharm Offer"), the Board of Cobra gives the following recommendation.

The Independent Cobra Directors, who have been so advised by Seymour Pierce, consider the terms of the Offer to be fair and reasonable. In providing its advice to the Independent Cobra Directors, Seymour Pierce has taken into account the commercial assessments of the Independent Cobra Directors. In addition, the Independent Cobra Directors consider the terms of the Offer to be in the best interests of Cobra Shareholders as a whole. In reaching their recommendation the Independent Directors have taken into account the following factors:

• trading conditions have remained very challenging with the continued delay in the achievement of contract signatures and as a result the Company did not have sufficient working capital for its current purposes;

• current banking facilities were due to expire on 4 January 2010;

• the inability of the Company to secure any funding from alternative sources other than the Offeror; and

• in the absence of the Recipharm Offer, the Company was not in a position to continue as a going concern and would be required to be placed into administration.

Accordingly, the Independent Cobra Directors recommend that Cobra Shareholders accept the Recipharm Offer once made as they intend to do so in respect of their own beneficial holdings.

In accordance with the City Code, Recipharm has loaned monies on normal commercial terms to Cobra, in order for Cobra to meet its working capital requirements during the integration of the Recipharm and Cobra businesses.

An offer document will be posted to shareholders on or before 13 January 2010.

For further information, please contact: