Investor News

19 May 2006

Redeemable Preference Shares

Further to the announcement by Avecia Group PLC (“the Company”) on 13th April 2006, the Company is pleased to report that, following approval by its ordinary shareholders, the UK High Court has sanctioned a reduction of £150,000,000 in the Company’s ordinary share capital. The Company’s purpose in seeking this reduction in ordinary share capital was to provide distributable reserves on its balance sheet, out of which dividends due to preference shareholders could be paid and make provision for the redemption of the preference shares in the future.

The Company now expects to pay arrears of dividend on its preference shares as soon as practicable. In the meantime, until arrears of dividend are paid, the preference shares continue to accrue dividend at the rate of 16% per annum plus a further 2% default rate. An announcement will be made when the dividend arrears are paid.

The Company’s preference shares are not affected by this reduction in the ordinary share capital in the Company.

Investor Enquiries: Tel: +44 (0)161 721 1228