This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014, which forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended).

18 August 2022

Graft Polymer (UK) Plc

("Graft Polymer", the "Company", and together with its subsidiaries, the "Group")

First Commercial Purchase Order Received for GraftBio Division

Graft Polymer (UK) Plc (LSE: GPL), a business focused on the development and commercial production of polymer modification, biological supplements, and nano-drug delivery systems, is pleased to announce the receipt of a first material commercial purchase order to the Group's GraftBio division for an anti-inflammatory supplement to be sold in the USA.

Key Highlights:

·    Purchase order to supply 50,000 units of ArtemiC™ Rescue received from MGC Pharmaceuticals Plc ('MGC Pharma')

·    First large commercial purchase order received by GraftBio

·    Production will commence immediately, with delivery of ArtemiC™ Rescue products to MGC Pharma, and associated funds remitted to Graft Polymer, expected over the next three months

·    The US$1 million Purchase Order for 50,000 units of ArtemiC™ Rescue received by MGC Pharma from US based AMC Holdings, Inc. ('AMC')

·    On successful delivery of the ArtemiC™ Rescue products to AMC, there is potential for follow-on purchase orders and future revenue streams from future demand from their US distribution network

·    ArtemiC^TM Rescue is a nutraceutical which, in a Phase II Clinical Trial undertaken in 2020, demonstrated a range of benefits for patients suffering from moderate COVID-19.

·    Graft Polymer have licenced its drug delivery system platform to MGC Pharma to deliver active ingredients more effectively to improve the bioavailability and synergy of the natural ingredients

Victor Bolduev, CEO, commented, "This near-term revenue generating purchase order from MGC Pharma is a significant moment for Graft Polymer, and one which we anticipate follow-on orders from in the coming quarters. The ability for the GraftBio proprietary drug delivery system division to licence and produce a wide range of products for pharmaceutical clients like MGC Pharma, and many other customers and industries going forward, demonstrates the diverse nature of our technology.

"With cash on hand and having recently reached cash flow positive status at the Slovenian facility through organic growth alone, this first commercial purchase order, along with the continuous operational developments being made, puts Graft Polymer in a strong position as we continue to deliver on our strategy."

Further Information

In 2020, Graft Polymer launched a new division named GraftBio to develop IP for Bio/Pharma applications. This includes a drug delivery system ('DDS') to support and provide solutions to the market, which had been heavily impacted by the COVID-19 pandemic. The Group has developed a set of DDS's that enable it to licence its DDS platform (IP) to MGC Pharma in relation to a number of MGC's products, including ArtemiC™ Rescue. ArtemiC^TM Rescue is a nutraceutical which, in a Phase II Clinical Trial undertaken in 2020 using Swiss PharmaCan AG's award winning MyCell™ technology, demonstrated a range of benefits for patients suffering from moderate COVID-19. Following the study, Graft Polymer have licenced the drug delivery system platform to MGC Pharma for the delivery of active ingredients to more effectively improve the bioavailability and synergy of the natural ingredients.

Following a US$1 million purchase order to MGC Pharma for 50,000 units of its ArtemiC™ Rescue product, Graft Polymer, via the Group's GraftBio division, has received its first commercial purchase order for the 50,000 units of ArtemiC™ Rescue.

Production of the 50,000 units of ArtemiC™ Rescue will commence immediately and delivery to MGC Pharma, and associated funds remitted to Graft Polymer, will be made over the next three months.

If the delivery by Graft Polymer of 50,000 ArtemiC™ Rescue units is successful, as anticipated, the expectation is further orders will be received which will have a material positive impact on future revenues.

**ENDS**

For more information, please visit https://www.graftpolymer.com or contact:

About Graft Polymer

Graft Polymer is a London Stock Exchange listed company (GPL.L) with a cutting-edge, cash-flow positive, research and development (R&D) and manufacturing facility based in Slovenia which has already introduced more than 50 products to the market. The core business of the Group comprises polymer modification and drug delivery system developments. The Group has developed a proprietary set of polymer modification technologies which uses recycled raw materials and a closed loop system to reduce waste. Graft Polymer's technology can improve existing products and processing methodologies by enhancing performance, simplifying manufacturing, reducing material consumption, widening the choice of feedstocks, and reducing costs.

Graft Polymer has three divisions: the first division focusses on polymer modification; the second is GraftBio which develops IP for Bio/Pharma applications (including a drug delivery system to support and provide solutions to the market, which had been heavily impacted by the COVID-19 pandemic); and the third is the Group's food supplement division. A significant milestone was reached in May 2022 when the Slovenian manufacturing facility was granted a Hazard Analysis and Critical Control Point (HACCP) Certificate. The HACCP Certificate allows it to enter the lucrative Business-to-Consumer market and commercialise its IP for bio/pharma applications, developing active pharmaceutical ingredients and drug delivery platforms for use in the food supplement market, thereby introducing a further revenue stream to its business.

Environment, Social and Governance is at the forefront of the Group's strategy and the facility in Slovenia has been granted ISO 14001 accreditation in recognition of the environmental management systems in place to reduce waste. Graft Polymer only uses REACH and ROHS certificated raw materials instead of toxic raw materials, and its extensive R&D programme has also developed specialised recycling polymer additives which increases the strength of recycled blends and plastic products whilst also reducing plastic waste by between 40 and 50 per cent.

Graft Polymer is well funded and debt free.