TyraTech : Final Results for the Year Ended 31 December 2016

Strictly Embargoed until 07.00: 9th May 2017

("TyraTech" or the "Company")

TyraTech Inc. (AIM: TYR, and TYRU), a life sciences company focused on nature-derived insect and parasite control products, today announces its results for the year ended 31 December 2016.

• Vamousse® sales in US grew by 10% to $5.9 million over 2015 and gained 3% points of market share

• Vamousse sales in UK grew by 27% to £1.3 million in local currency (2015: £1 million) and gained market share over competition

• Vamousse distribution network increased in the US - driven by the addition of Rite Aid, the third largest pharmacy chain in the US with more than 4,500 stores

• Addition of 450 Morrisons stores, the fourth largest chain of supermarkets in the UK

• Vamousse Head Lice Treatment was voted in the UK Pharmacy Product of the Year 2017 - Best Advertising Campaign by Independent Pharmacy Magazine

• Launch of two new PureScience™ animal health products for the poultry and swine market in the US

  Financial Highlights

• Gross revenue increased to $8.4 million (FY2015: $7.4 million)

• Gross product revenue increased by 13% to $8.0 million (2015: $7.1 million)

• Gross profit increased to $4.8 million with gross margins on net revenue of 67% (2015: $4.6 million and 69%)

• Vamousse generated a positive direct contribution of $2.2 million on $6.6 million net sales

• Operating costs and expenses $7.1 million (2015: $7.1 million)

• Net loss, before and after taxes, $2.3 million (2015: $2.3 million)

• Cash and cash equivalents at 31 December 2016 $1.8 million (2015: $4.0 million)

• Net cash used in operations decreased to $1.8 million (2015: $2.8 million)

• Addition of the new product Vamousse Lice Repellent at CVS and Meijer in the US

• Distribution of Guardian® in the US in a limited test market (around 600 stores) with Kroger, the largest grocery store chain and supermarket by retail sales

• Full launch of the equine fly repellent Outsmart™ with our partner SmartPak

Strategic Review

The Company has made significant progress in successfully commercializing its technology in both the human health space (Vamousse) and more recently, in the animal health space (PureScience and Outsmart). With Vamousse, the Company has created a brand with a strong distribution network, a sizable market share and a positive direct contribution margin. With PureScience and Outsmart, the Company has begun to enter the animal health market, answering unmet needs, receiving positive customer feedback and completing efficacious field trials.

However, the Board is of the view that the Company lacks the necessary resources from operating cash flow alone to fund the next phase of its growth in both areas. The increasingly positive cash contribution of the Vamousse product range cannot currently support the financial needs of Vamousse's growth as well as the development of the highly attractive animal health pipeline of new products.

Therefore, as announced on 9 February 2017, the Board implemented a strategic review to determine the most effective way to unlock the future growth potential of the Company's assets and maximize shareholder value.

The Board has now completed the first stage of this review and has concluded that it should divide the Company's intellectual property and products into two separate entities, focused on human health and animal health respectively. Initially, both entities will remain 100% owned by Tyratech.

The human health business as a stand-alone entity could be profitable with growth potential in existing markets, geographical extension, and further innovative products. Investment in this business would be focused on supporting its own marketing and commercial initiatives and could be managed within limited cash resources depending on how aggressive a growth target is set.

The animal health business ultimately has larger growth opportunities, but will require further investment to support activities in research and development. This investment includes the necessary time to fully develop and transform the pipeline into marketable products. The Company believes that the resource requirements to build a successful animal health business would be significant and therefore require some type of private partnership and/or investment.

The Company is moving swiftly to complete the next stage of the strategic review process. It has engaged consultants to assist in the process with the aim of completing the reorganization by the end of the financial year. It is already in the final stages of an external validation of the value of Vamousse and in the early stages of an external validation of the valuation of the animal health business.

To optimize our existing resources, the Company will stay focused in the short term on growing Vamousse in the US and in the UK without major expansion in existing and new geographies. We will also continue to roll-out the existing animal health products in the US.

"2016 was a challenging year for the Company. The progress made by Vamousse in difficult market conditions and the launch of the first products in the Animal Health space were significant but not enough to generate the cash resources to fully develop the potential of the Vamousse product range while investing in the R&D of a promising Animal Health pipeline. This situation masks the fact that, on a stand- alone basis, Vamousse, provides a positive business contribution.

"To address this situation, the Board has undertaken a comprehensive review of the company structure, resource, and potential pipeline to unlock the full value of the Company for the shareholders. Phase one of this is already complete and we look forward to updating shareholders further in due course."

"Despite difficult market conditions in the US, the overall gross revenues grew 13% year over year mainly driven by Vamousse. The brand made substantial progress in 2016, increasing its market share and retail distribution in the UK and in the US. We added a major distributor, Rite Aid, in the US and placed new products in CVS and gained commitment to expand the offering at Walgreens in 2017. From our innovation pipeline, we launched a new head lice repellent in 2017, which will extend our footprint into the prevention market where we believe significant growth opportunities exist. Despite our focus in resource allocation and management time on Vamousse, we advanced, albeit modestly, the pipeline of our animal health products. We launched products in the equine and poultry segments with major distributors and the biggest producers of poultry and eggs in the US. It also became apparent in 2016 that the Company does not have sufficient resources from operating cash flow alone to fund the next phase of its growth and unlock the full value of its assets. Our focus will be to continue to drive the growth of the Vamousse brand and the existing Animal Health products within the cash resources available and to implement the initial actions of the strategic review as we seek to unlock the full value of the Company for shareholders.