Investor News

Avecia 16% Redeemable Preference Shares

In accordance with the company’s Articles of Association, Avecia Group PLC will, on 3rd July 2006, pay a fixed dividend of US$2.2028 in cash on each of the outstanding preference shares issued by the Company in respect of the six month period to (and including 1st July 2006. This dividend is calculated in accordance with the terms of the Articles at the rate of 18% per annum on US$25 for the period from 2nd January 2006 to 26th May 2006, and 16% per annum on US$25 for the period from 27th May 2006 to 1st July 2006.

On 26th May 2006 Company issued formal notice to preference shareholders of its intention to redeem 1,822,489 of its outstanding preference shares. The dividend payment will however be made in respect of all outstanding preference shares as at 1st July 2006, including those due to be redeemed pursuant to this notice of redemption. Total dividends of US$6,657,871 will therefore be paid to the Company’s shareholder of record in respect of all preference shares currently outstanding.

In relation to the redemption of preference shares in respect of which notice of redemption has been given as aforesaid, in accordance with the Company’s Articles, the redemption payment will be made on 5th July 2006 (being the next relevant business day in New York after the redemption date) and dividends accruing on the shares redeemed up to the redemption date will also be adjusted to take account of this extra day.

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