CalciTech Submits New Grant Application.

MAGDEBURG, Germany -- CalciTech Ltd. (Plus Markets: CLK; OTCBB: CLKTF) has been advised in late December 2006 by the Investment Bank of Saxony Anhalt, responsible for the approval of grant payments from the European Structural Fund, that CalciTech will qualify under certain special exemption rules (now defined for grant applications in 2007) for a similar grant, but applicable up to 50% of CapEx, instead of 45% for applications submitted in 2006. In view of improved terms the company was advised to withdraw its application in 2006 and submit a new application in early January 2007.

This new application has now been submitted for a total estimated project cost of [euro]50 million. The increase in the amount of the application is primarily due to the addition of a drying and shipping facility that will enable the production of high value SCC products to sectors such as the polymer, paints and plastics industries. This opportunity has arisen due to off-take demand following the efforts made this last several years by the product development team in non paper applications and will provide a diversity of clients and products to CalciTech's first merchant plant.

CalciTech is now in the process of finalising all agreements relating to this first SCC plant building and operation, having selected the final nominated bidding suppliers. Off-take agreements in contractual and letter of intent form have now been agreed for tonnage well in excess of the planned production capacity.

Roger Leopard, CalciTech CEO, stated, "We are delighted to have now reached this advanced stage in our plant plans for Leuna. During this period we have been developing further potential projects based on a similar production capacity as Leuna for follow on after successful Leuna commissioning so every effort is now being made to complete this phase."

The directors of the company take responsibility for this announcement.

This press release contains "forward looking statements" including forward looking statements as that term is defined in section 27a of the United States Securities Act of 1933 and section 21e of the Securities and Exchange Act of 1934. Statements in this press release, which are not purely historical are forward looking statements and include any statements regarding beliefs, expectation or intentions concerning the future. Forward looking statements in this press release include, but are not limited to statements which are subject to a number of contingencies and uncertainties, including, but not limited to, market acceptance for CalciTech's products, manufacturing of CalciTech's products in a commercial setting, obtaining adequate financing and construction management for products and obtaining appropriate permits.

It is important to note that the corporation's actual outcomes may differ materially from those in forward looking statements contained in this press release. Although the company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations and intentions will prove to be accurate. Readers should refer to the risks disclosures in the company's public filings with the Securities and Exchange Commission.