Final Results

28 April 2010

Oxford Advanced Surfaces Group plc ('OAS' or the 'Company') is pleased to announce its audited final results for the year ending 31 December 2009.

A copy of the Annual Report and Accounts and Notice of AGM is being posted to shareholders shortly and will be available from the Company's website - www.oxfordsurfaces.com.

CHAIRMAN'S STATEMENT

This is my first report to shareholders as the new Chairman of Oxford Advanced Surfaces Group plc. 2009 has been a year of many changes; focus and strategy, IP, and the composition of the Board.

Following a critical review of the business in early 2009 we instigated a number of changes and cost containment programmes to ensure that the business would survive the recession and come out the other side in a strong position to take advantage of any return to growth. We focused the attention of the research team on leading products with external support. The efforts of our cost reduction programme can be seen in the results as set out in the group financial review later in this annual report.

We continued to concentrate on securing IP to ensure that our technology was well protected, both for our benefit and that of our future customers. We have filed a further five patents in 2009 and we are still expanding the patent families to cover our new developments in anti-reflective coatings, particle deposition and the use of polymers in our formulations. All these new patents provide license potential and many are the subject of our current technology development and license negotiations.

In addition to these changes we have changed the Board composition. Marcelo Bravo, after his significant input into building the company, has moved on to new challenges. We would like to thank him for his efforts and the company he has left behind that is now well positioned to move to commercialisation. Marcelo has been replaced by Dr Mike Eason, who previously held the role of Chief Technical Officer. We are happy to welcome Mike to the Board and wish him every success. His review of the business and the future opportunities for the group appears on the following pages.

In addition, at the start of 2010 we also said farewell to Jeremy Scudamore and Andy Naylor. They were both influential in the foundation of the business and its funding success and development. Again, I would like to thank them for their contribution.

I also have the pleasure of welcoming Dr David Bott to the Board. His experience in technology growth businesses, the Technology Strategy Board and his former career are all beneficial to our business in its current stage of development. He is also a highly beneficial technical advisor to the management team, along with Dr Mark Moloney who continues to support the business in his role on the Scientific Advisory Board.

We have continued to increase the focus of our technology and are now concentrating on three key markets; adhesion, composites and anti-reflective coatings. These markets are both those where we have made most technical progress and where we also have strong commercial traction driven by customer need. All areas offer the opportunity of multiple licenses for various applications across a range of market sectors.

The group has recruited a leading team of scientists and executives with the breadth and depth of experience and skills to ensure that we are well placed to fully exploit our proprietary technology, both in the opportunities that already exist and those that will be created by the current market and economic conditions.

At the end of 2009 employee numbers excluding non-executive directors, had fallen from 22 to 17, of which 14 were focused on research and development programmes. We expect employee numbers to increase back up to around the 20 headcount level by the end of 2010 in order to manage our commercialisation and scale-up programme.

Outlook

The progress from research into commercialisation continues, and we believe that we are well positioned to agree initial license deals on our technology in 2010. We are well capitalised and agile enough to take advantage of the market opportunities as they present themselves.

I would like to thank all our employees for their dedication and hard work which have made possible significant technical and commercial progress in 2009 and has created a strong foundation for our advance to commercialisation in 2010.

Michael Bretherton
Chairman

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