MIC Micap

RNS Number:9251I
MICAP PLC
14 September 2006


For release                          07.00am                   14 September 2006


                         MICAP PLC ("MICAP") ("MIC.L")

            The AIM - quoted technology company specialising in the
                    microencapsulation of active ingredients


                             Re: Licence agreement


    "Micap freed to promote direct sales of its yeast based flavour products
              following termination of licence with Firmenich SA"


Yeast based flavour products

It has been apparent to Micap plc for some time that, with the Company's
acquired spray-drying capabilities, significant advantage and value could be
gained by taking over direct sales of its yeast based flavour products.
Firmenich SA has now decided to terminate its license with the Company and as a
result, Micap looks forward to leveraging upon its current production capacities
in Ireland and accelerating the supply of flavour products.

Following the acquisition of Micap Encapsulates Ltd, a spray-drying production
plant based in Athlone, Ireland, in November 2005, Micap has been able to supply
flavour products in a cost efficient way, allowing it to establish profitable
direct sales relationships. Micap's margin from these sales already exceeds the
annual contribution from Firmenich. The License with Firmenich, however, limited
the opportunities for Micap's further promotion of the direct sales channel.

The license with Firmenich will terminate with effect from 31st March 2007.
Accordingly, Micap will be free to actively pursue contacts with interested
parties, and to promote its technology through a range of flavour companies.

Commenting, Michael Norris, Chief Executive of Micap, said:

"I am grateful to Firmenich for the investment they have put into our
technology, particularly in the early years of the Company's development.
However, since the acquisition of Micap Encapsulates and the appointment to our
Board of Shane Delaney, who has many years experience in ingredients sales, we
have seen major opportunities for direct sales of flavour products. I am
confident that we will generate significantly more value for the Company from
our own efforts than could have arisen from our license relationship."


For further information please contact:

Contact:

Micap plc                                                     +44 (0)7966 341802
Michael Norris, CEO

Adventis Financial PR
Tarquin Edwards/Chris Steele                       020 7034 4758 / 020 7034 4759
                                                   07879 458 364 / 07979 604 687

Notes for editors:

About Micap

Micap is a provider of microencapsulation solutions to a range of customers in
fields such as flavour delivery, agrochemicals, healthcare and industrial
applications, using both its patented yeast cell technology and novel methods
developed by its scientific team. For further details visit http://
www.micap.co.uk.

About microencapsulation

Microencapsulation is a process whereby tiny droplets of liquid or particles of
solid material are coated with a continuous film of polymeric material.
Microcapsules have several benefits, including conversion of liquids to solids;
separating reactive compounds; protecting substances against environmental
factors; and improving the material handling properties.

Micap's unique patented technology involves using killed yeast cells as natural
capsules to protect the active ingredient. Yeast encapsulation can protect
active ingredients against high temperatures, the effects of the sun, pressure
and degradation through exposure to the air.

About Spray drying

Spray drying is the rapid drying of a slurry of very small solids suspended in a
liquid so as to produce dry powders or solid granules. The slurry is first
atomized into very small liquid droplets which are then sprayed into a stream of
hot dry air which rapidly evaporates the liquid leaving behind a dry powder or
dry solid granules. The dry powder or solid granules are recovered from the
exhaust air by using cyclones, bag filters or electrostatic precipitators.

The Micap Encapsulates Ltd plant is a food grade facility, with a capacity of c.
850 tonnes per annum of dried product.  Typical customer sectors for a food
grade spray drying facility include flavours and colours for food ingredients,
animal feed products, nutraceutical ingredients and natural plant extracts.  For
further details please visit http://www.micap.biz/spraydrying.html.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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