Interim Management Statement

RENOVO GROUP PLC
(“Renovo” or the “Company”)
(LSE: RNVO)

INTERIM MANAGEMENT STATEMENT
FOR THE PERIOD FROM 1 APRIL 2011 TO 19 JULY 2011

During the period Renovo has significantly reduced its development activities and expenditure, made all staff redundant and significantly reduced the size of the Board. The Company has two ongoing clinical trials: Prevascar, for improving the appearance of scarring in the skin (reports H1 2012); and Adaprev, a Class III medical device in the EU for the reduction of tendon adhesions (reports H2 2011). Both will be completed utilising contractors. As previously announced Renovo intends to sell its clinical (Juvista, Prevascar, Adaprev and Juvidex) and preclinical programmes, however it is likely that the sale of Prevascar and Adaprev would occur following the reporting of the ongoing clinical trials.

Renovo has surrendered the lease on its main facility at The Core Technology Facility, Grafton Street, Manchester and has no further exposure to any liabilities in connection with the lease. The consideration paid by Renovo to surrender the lease was £1.6m.

Renovo’s combination of cash and cash equivalents with term deposits maturing within one year as at 30 June 2011 was £40.5m (unaudited) compared to £44.4m (unaudited) previously reported at 31 March 2011. After taking into account payment of creditors and accruals outstanding at 30 June 2011 and the lease surrender, the net cash position at that date is in excess of £35m which compares favourably to the estimate previously given of approximately £33m. The cost of the ongoing trials is estimated at approximately £1m.

Renovo is well funded and its future strategy is aimed at maximising shareholder value. The Company will consider all options available to it which may include acquisitions and mergers of external companies in addition to realising value where possible from its current portfolio of clinical and preclinical candidates and intellectual property. The directors do not intend to place any restrictions on the nature of the business carried out by potential acquisition and merger targets. Renovo’s cost base is being minimised wherever possible in order to maximise the Company’s available cash.

As announced on 5th July Max Royde joined Renovo as a Non-Executive Director. He joins Professor Mark Ferguson Non-Executive Chairman; Jamie Brooke, Non-Executive Director and David Blain, part-time Chief Financial Officer and Company Secretary.

As recently announced the new Board is considering whether to put proposals to shareholders which may include:
• delisting from the Official List and admitting the Company’s ordinary shares to trading on AIM;
• putting in place an on-market share buy-back program for up to 25% of the Company’s current issued share capital; and
• subject to court approval, restructuring the Company’s balance sheet to create distributable reserves to, inter alia, facilitate the proposed buy-back program.
In the event such action is agreed by the Board, the Company will post a circular to its shareholders dealing with the above proposals in due course.

For further information please contact:
Buchanan Communications:
Tim Anderson, Lisa Baderoon, Catherine Breen +44(0) 20 7466 5000

Information in this announcement is based upon unaudited management accounts and in addition, certain statements made are forward looking statements. Such statements are based on current expectations at the date of this announcement and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results referred to in these forward looking statements. We undertake no obligation to update or revise any forward looking statements to reflect any change in our expectations or any change in events, conditions or circumstances.