FAQs following the General Meeting on 18 May 2010

When can we expect the first and the final payments from the liquidator?

The timing and amount of payments will be determined by the joint liquidators. However, there is normally an initial payment followed by a final payment made after tax clearance from HM Revenue & Customs has been received and all other matters have been finalised. This entire process is expected to take 12 -18 months.

What is your best estimate of the return per share?

The amount of payments to be made to shareholders will be determined by the joint liquidators. However, we noted by way of illustration in the Circular to shareholders that if the Company was to have £4.33 million of net assets then this would result in a return to shareholders of approximately 13.4 pence per share. The precise amount will only be known once all of the Company’s liabilities have been settled. Any sale of the Group’s IP assets may positively impact the return to shareholders, however it should be stressed that absolutely no assurance can be given that such assets will realise any value.

What is the current cash position in the company?

As at 31 December 2009, the Company had cash, cash equivalents and money market investments of £6.18million. It is the net assets of the Company (i.e. after settling its liabilities) which will determine how much is returned to shareholders. However, we noted in the Circular to shareholders that if the Company was to have £4.33 million of net assets then this would result in a return to shareholders of approximately 13.4 pence per share. The precise amount will only be known once all of the Company’s liabilities have been settled. Any sale of the Group’s IP assets may positively impact the return to shareholders, however it should be stressed that absolutely no assurance can be given that such assets will realise any value.

How do I inform Neuropharm of a change of my address or personal details?

Equiniti are being retained as Neuropharm’s share registrar and will continue to maintain the share register. You should contact Equiniti, PO Box 4630, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6QQ.

What are the next steps in the liquidation process?

The liquidators will work to realise any assets, settle all outstanding payments to creditors and tie up all outstanding affairs of the company, including submitting final tax computations and obtaining clearance from HM Revenue & Customs. The affairs of the subsidiary companies must also be completed prior to the finalisation of the liquidation of PLC.

What is the difference between a Members Voluntary Liquidation and an insolvent liquidation?

In a Members Voluntary Liquidation the directors believe the company has sufficient funds to return money to its shareholders after payment of the creditors and have sworn a declaration of solvency to that effect. In an insolvent liquidation the company has insufficient funds to meet all its liabilities.

Will Grant Thornton be acting as the liquidators?

Samantha Keen and Ian Carr of Grant Thornton have been appointed as the joint liquidators of Neuropharm Group plc.

Why did you suddenly issue an extra 1.2 million shares?

Professors Eric Hollander and Mark Smith who were involved in the early stages of the company had options to take up new shares at an effective exercise price of 5p per share. Both have now exercised their options and have paid in a total of £60,000 for those shares.

Are there any ongoing discussions on the disposal of portfolio assets?

Yes, discussions are ongoing but are still at an early stage. We have had a number of discussions in the past with third parties and they have not led to any sale of assets - absolutely no assurance can be given that such assets will realise any value. The joint liquidators will look to pursue any interest in the assets that emerges but will not seek to undertake any further marketing given the extensive search already undertaken by the directors over the past 15 months. It is possible that the costs associated with pursuing a sale of assets or programs may outweigh what a purchaser would pay, so there is no certainty that there will be any sales.

What steps will the liquidator take to realise value in the portfolio?

The joint liquidators will respond to enquiries and negotiate to realise any value in the programs. However, no assurance can be given that any value will be realised. The joint liquidators will look to pursue any interest in the assets that emerges but will not seek to undertake any further marketing given the extensive search already undertaken by the directors over the past 15 months. It is possible that the costs associated with pursuing a sale of assets or programs may outweigh what a purchaser would pay, so there is no certainty that there will be any sales.

What will happen to the operating company Neuropharm Limited?

It is intended that Neuropharm Limited will go into a Members Voluntary Liquidation on or before 30 June 2010 depending upon the outcome of ongoing discussions regarding the sale of Neuropharm Limited or its assets.

How long will the liquidation process take?

The final payment is normally made after tax clearance from HM Revenue & Customs has been received and all other matters (including the elimination of the subsidiary companies) have been finalised. This is estimated to take up to 18 months.

What will happen to the records of the company?

The records will be archived and destroyed 12 months after dissolution of the company.

Who should I contact if I have any questions?

Samantha Keen and Ian Carr have been appointed as the liquidators of Neuropharm Group plc at Grant Thornton, 1 Dorset Street, Southampton, SO15 2DP.

For further information please contact Mike Smith on 0207 728 2496 or mike.j.smith@gtuk.com.