Napo Pharmaceuticals

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London Stock Exchange Welcomes First Us-Incorporated Company To IPO On The Main Market

London, August 2, 2006 - The London Stock Exchange today welcomed California-based Napo Pharmaceuticals Inc to its Main Market. Napo Pharmaceuticals, which raised a total of £11.9 million on admission, is the first US incorporated company to have its sole listing on the Main Market.

Napo Pharmacuticals is a specialty pharmaceutical company based in San Francisco, California. Founded in November 2001, the company is developing a late-stage drug candidate, Crofelemer, for gastrointestinal indications including chronic diarrhoea in persons living with HIV/AIDS.

Lisa Conte, Chief Executive Officer of Napo Pharmaceuticals, said:

"As a global business we are delighted to be joining the Main Market of the London Stock Exchange. We have a strong and late stage pharmaceutical pipeline and will use the proceeds of this placing to advance our gastro-intestinal products to market and generate multiple revenue streams from around the world via profit sharing arrangements, royalties, and corporate partnering deals. We have received strong interest and participation from investors and we look forward to launching our products on the market in Europe and the US, returning value to our shareholders, and continuing our responsible environmental and global health practices."

Tracey Pierce, Head of Global Business Development at the London Stock Exchange, said:

"We are delighted to welcome Napo Pharmaceuticals to our Main Market. As the first US incorporated company to IPO exclusively on London's Main Market, Napo Pharmaceutical's admission underlines the increasing attractiveness of the London Stock Exchange's markets to companies from across the globe."

In the six months to the end of June 2006, the Exchange attracted 50 international IPOs to the Main Market and AIM, drawing companies from 15 different countries, and raising a total of £4.5 billion. By comparison, during the period from January to May this year, there were 15 international IPOs on the New York Stock Exchange and Nasdaq combined.

There are currently 52 US based or incorporated companies quoted on AIM, the Exchange's international market for smaller, growing companies. 14 of these companies have joined during the course of 2006, and have raised £503.8 million between them. There are 41 US incorporated companies listed on the Main Market.

Nomura Code Securities Limited acted as the sponsor, financial adviser and broker for the IPO.

For further information, please contact:

Catherine Mattison Press Office +44 (0)20 7797 1222

Richard Webster-Smith

newsroom@londonstockexchange.com

Notes to editors

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