Release issued 16th October 2007

London, UK, 16 October 2007: Meldex International plc (AIM: MDX) the specialty pharma and OTC product company, is pleased to announce the launch of Dexo Germany, based in Berlin, and a new XGel™ film manufacturing agreement.

Dexo Germany

Dexo Germany further extends Meldex's existing international sales and distribution network for prescription pharmaceutical products. Dexo Germany builds on the resources and distribution network acquired from Melbrosin in June 2007 and marks a further significant step in both the growth of Meldex"s speciality pharmaceutical business and the integration of Melbrosin into the Group. Dexo Germany will be able to utilise and benefit from many of Melbrosin’s existing supply and distribution relationships in Germany, which is one of the largest OTC and prescription pharmaceutical markets in Europe .

Meldex International has a portfolio of prescription products that are already marketed in various territories and Meldex has a strong development pipeline of products using its enabling systems. Dexo Germany will be launching an analgesic product, using Meldex International’s TabWrap™ technology, by the end of 2007. This product is an important product for the Group and further details of this product will be announced at the time of launch. Dexo Germany will also be marketing a number of products from Meldex’s existing product portfolio.

Distribution agreement with the German Pharmacy network (Länger Leben in Deutschland), LLiD 

Meldex is also pleased to announce that as a result of the Group’s exhibition at ExpoPharm 2007 a new Distribution Agreement has been entered into between Meldex’s Melbrosin division and the German Pharmacy network (Länger Leben in Deutschland- "LLiD”). LLiD is a pharmacy initiative of 1,500 pharmacies specialised in nutritional counselling and the promotion of health awareness in Germany.  In the first phase of this agreement, 750 LLiD outlets will stock and market SlimCup™ from October 2007. Under this agreement LLiD will promote SlimCup™ within their weight management product range. LLiD will also provide a distribution and pharmacy network for Dexo Germany.

Manufacturing Agreement

Meldex is also pleased to announce that it has commenced a long term manufacturing agreement with a large undisclosed party for XGEL™ film. The contract has forecasted annual revenue of $5-6m which has commenced immediately. The contract remains well within the capacity of the Group's manufacturing capability.

Richard Trevillion, Chief Executive, Meldex International, said:

“The launch of Dexo Germany forms an important part of Meldex’s strategy and business model. We now have a strong international sales, marketing and distribution infrastructure for both our specialty pharmaceutical and OTC businesses. Dexo Germany provides Meldex with a direct presence in an important European market and builds upon the acquisition of Melbrosin in June 2007. Dexo Germany will also launch Meldex’s first TabWrap product in Europe by the end of 2007.

“In addition to the launch of Dexo Germany we are pleased to announce significant organic growth in the core business divisions: Dexo and Melbrosin. We are rapidly expanding both our prescription and OTC retail channels which builds on the recent agreements with Tesco in the UK and Walmark in the CEE region.”

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About Meldex International Plc

Meldex International plc is an innovative specialty pharmaceutical and OTC product. Listed on London's AIM in May 2003, the Company has over 80 patents granted or in application within 24 patent families and has product development agreements and strategic alliances with several global healthcare companies. Meldex has acquired sales and marketing resources within Europe and the US as a launch mechanism for its own pharmaceutical products. Meldex acquired the Melbrosin business in June 2007 for a consideration of up to €35m. Melbrosin's focus is on consumer OTC health care products based on substances of natural and plant origin which are developed into consumer orientated brands then scaled, produced and distributed by Melbrosin. The Melbrosin acquisition complements the prescription pharmaceutical sales and marketing business created and expanded in 2006. The business continues to develop innovative delivery mechanisms enhancing both its own product range and those of selected partners using its proprietary XGEL™ polymer technology. For further information please go to www.meldexinternational.com

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