London, UK -- (MARKET WIRE) -- April 26, 2007 --

                             SkyePharma PLC

              Preliminary statement of annual results
               for the year ended 31 December 2006

26 April 2007

Summary of Results 
                                         2006        2005  
                                        GBP'm       GBP'm
Continuing operations
Revenue from 
continuing operations                    43.0        50.8

Research & 
development expenditure                  22.9        14.3

Operating loss from 
continuing operations 
before exceptionals                      13.9         1.0
Loss before tax from 
continuing operations 
after exceptionals                       17.9        20.3

Discontinued operations
Operating loss from 
discontinued operations 
(before exceptionals)                    16.1        15.9
Loss before tax from 
discontinued operations 
after exceptionals                       59.0        30.3

Net debt
Total debt less cash including 
convertible bonds at 31 December 2006   111.7       109.8


- Company restructuring successfully completed by new management team

- Sale of Injectable Business completed in March 2007:

o Eliminates related operating losses and need to invest

o Potential upside from development of DepoBupivacaine™ at no cost/risk to the Group

- Major financial restructuring:

o Raised GBP35m new finance facility from Christofferson Robb & Co. ("CRC") in December 2006

o Paul Capital Refinancing agreed in March 2007. Exceptional credit GBP20.1m in 2006

o Equity placing raised GBP14.8m (net) in March 2007

o Total debt less cash at year end GBP111.7m (2005: GBP109.8m) including convertible bonds

- Good progress with Flutiform™:

o Licensed for US to Kos (now Abbott), for Europe to Mundipharma

o Phase III clinical trials progressing to plan with Food and Drug Administration ("FDA") filing expected around end of 2007

- Revenue:

o Revenue from continuing operations down 15% to GBP43.0m (2005: GBP50.8m)

o Cash received from license signing and milestone fees up 24% at GBP30.0m (2005: GBP24.1m)

o Royalty revenue totalled GBP18.1m (2005: GBP19.6m), reflecting continuing sales of existing products

Dr Jerry Karabelas, Non-Executive Chairman, said: "The past year was one of significant transition that has established a new direction for SkyePharma. The new management team has successful completed a fundamental restructuring of the Company's operations and finances and SkyePharma is now well placed to move forward. Our key priorities in the coming year will be to complete the US clinical trial programme for our lead asthma product, Flutiform™, and to leverage the Company's skills and technologies in oral and inhalation drug delivery."

The results presentation has been published on the Company's website and a webcast of the analysts conference will be available shortly after that conference is concluded.

For further information please contact:

SkyePharma PLC

Frank Condella, Chief Executive Officer
Ken Cunningham, Chief Operating Officer             +44 207 491 1777
Peter Grant, Finance Director

Financial Dynamics (London enquiries)
David Yates / Deborah Scott                         +44 207 831 3113

Trout Group (US enquiries)
Christine Labaree / Seth Lewis                      +1 617 583 1308

About SkyePharma PLC

Using its proprietary drug delivery technologies, SkyePharma develops new formulations of known molecules to provide a clinical advantage and life-cycle extension. The Group has ten approved products in the areas of oral, inhalation and topical delivery. The Group's products are marketed throughout the world by leading pharmaceutical companies. For more information, visit

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