CalciTech files results for the Full Year 2006.

HAMILTON, Bermuda -- CalciTech Ltd. (PLUS Markets: CLK; OTCBB: CLKTF) today announced it has filed with the SEC and PLUS Markets its audited accounts for the financial year ending 28th February 2006. Full results can be downloaded via CalciTech's website and from http://www.sec.gov/edgar.shtml

Revenues, which decreased from $74,928 to $59,805 compared to the previous year, are entirely generated through the sale of SCC samples for potential client trialing. Trials for non-paper applications require significantly less material than for trials in the paper industry, which explains the decrease in revenues.

Due to rapid progress of its projects and the increased rate at which these are undergoing feasibility, the Board of Directors decided to capitalise project costs to the value of $157,734, with a view to funding through our joint venture partnerships as these develop. Consequently, project development expenses were $nil, compared to $237,625 for the previous year.

Product development costs increased by $133,865 as a result of the launch of CalciSP(TM) and CalciRC(TM). General and administrative expenditure increased by $214,496, mainly due to an increase in accounting and audit fees, as well as the costs associated with our listing on Ofex (PLUS Markets). Net losses increased by $190,829 to $1,857,998.

Despite the marginally increased burn rate, we finished this year with over $1.3 million in cash and cash equivalents and, under International Financial Reporting Standards, we are pleased to report shareholders' equity of $730,268, compared to a deficit of $1,140,223 for the previous financial year.

On the operational side, the main development this year was the execution of our product diversification strategy. Francois Roux was promoted to Product Development Director, and we are now bringing into the company specialists in those industrial sectors where our SCC products are expected to bring added value to clients. The first such appointment was Jean-Claude Masson as Marketing Manager to the food and beverage industries in Europe.

We have always worked closely with industrial partners on the development of new products. This resulted in the announcement of two new specialty products. CalciSP(TM) is characterized by its extreme purity, and is designed for the food, pharmaceutical and cosmetics industries; CalciRC(TM) is a product specially developed for polymer applications.

Industry's response to the announcement of our new products has been very positive, globally. CalciTech is currently assessing the different opportunities for the distribution of CalciSP(TM) in the various markets that have shown interest.

An extensive testing programme on CalciRC(TM) conducted by a technical group specialised in plastics, has shown that SCC can significantly enhance certain characteristics of the finished product, especially in the strength area. Further trials are underway.

The Company has continued to advance the project to build its first plant at Leuna, Germany, as reported on previously. This accelerating process has been well advanced during the financial year and we expect to be able to make announcements in our current financial year. Energy costs have soared this past financial year. For CalciTech this has had the positive effect that other producers of calcium carbonates were forced to increase their prices substantially. This strengthens both the interest in our SCC and our competitive position, as the SCC production process is less energy intensive.

The negative effect of rising energy prices is that costs for plant building materials, such as iron and steel, have increased. This will have an effect on the costs of plant construction and cost structure once production commences. However, the overall advantages of SCC over other calcium carbonates, such as reduced energy needs for running paper machines will, CalciTech believes, more than compensate these cost increases.

During the past financial year CalciTech listed on Ofex (PLUS Markets), the UK market for smaller companies. The Company strongly believes that PLUS Markets, under the leadership of Simon Brickles, credited with the success of the AIM, will form a good platform to reach out to new shareholders with the facility of buying shares in Sterling for settlement through London clearing. As part of the Company's strategy to be accessible to shareholders, CalciTech visited a number of successful investor events in the UK, and will continue to do so.

At the beginning of the year CalciTech announced the appointment to the Board of Mr Alan Perkins, and the retirement as non-executive of Mr Mark Tompkins. Mr Tompkins will continue to be retained in a consultative capacity on financial matters. With Mr Perkins, the Board has gained a consummate City professional, who will lend his broad experience to the Company's already extensive corporate governance and he has been assisting the Company in issues of both a financial and corporate nature.

At the end of the previous financial year, CalciTech closed a private placement to the amount of $2.25 million. During this financial year, investors converted their warrants, raising a further $3.15 million in January 2006. The proceeds have been used to strengthen the Company's balance sheet by investment in project development activities, to decrease liabilities and for general working capital purposes.

During the year the patent in the Slovak Republic was granted. This was an important development, as the agreement with CalciTech's Slovakian partners to proceed with the Joint Venture project at Novacky depended on receiving this patent. Additionally, the Chinese patent was granted, which the Company regards as crucial for its future expansion in the Asian markets. CalciTech has received substantial interest in its technology from Asia, and is exploring its strategy for development of projects in this region. Other patents granted were New Zealand, Hong Kong, Indonesia and Australia.

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 Calcites products, manufacturing of Calcites 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.