The Rentokil Initial 2008 Share Incentive Plan (“the 2008 Plan”) approved by shareholders in 2008 was designed to facilitate the appointment in 2008 of John McAdam, chairman, Alan Brown, chief executive, and Andy Ransom, executive director, corporate development and to motivate them over a sufficient period to deliver a turnaround in corporate performance. The key features of the Plan are as follows:

* Acquiring, for a fair price, exploration and potential production assets that will provide the opportunity for rapid, sustained growth with an attractive balance of risk and reward;
* Attracting an experienced, productive and motivated team of people that will generate the maximum return on investment from those assets; and
* Creating and maintaining strong working relationships with the Indian companies that are participating in all of Oilex’s international joint ventures.

* Successful completion of detailed technical studies to unlock potential of
“tight” reservoirs using leading-edge North American “shale gas” industry
technology

* Studies indicate a very good correlation between the Cambay Eocene
reservoirs and the Eagle Ford and Haynesville “tight/shale” plays in the
USA

* Drilling and production tests through the first half of 2011

* P90 – 248 billion cubic feet (BCF) of gas and 11 million barrels (MMbbls)
of condensate

* P50 – 384 BCF of gas and 17 MMbbls of condensate

* P10 – 591 BCF of gas and 27 MMbbls of condensate

A fitting simile, because Aqua Bounty, headquartered in Massachusetts but listed in London, is making what is likely to be the first genetically modified animal approved for human consumption.

Its salmon will grow much faster than a normal one, thanks to the introduction of a gene that keeps growth hormones switched on at all time. Normal salmon take a break every now and then.

Meanwhile, in Belgium they are working on the Enviropig — which has less polluting poo — and in America there are bovines that shrug off mad cow disease. Investors face two questions: how do they pick the winners, and how do they gauge public reaction? Protesters are already decrying the “Frankenfish”. Shareholders must work out if the likely FDA approval outbalances the risk that the public will say no to buying GM food.

The Company intends to use the net proceeds from the placing for additional
launches of its lead product, Shrimp IMS, in the key markets of the Americas and
Asia as well as for the commercialisation of its developmental products. Shrimp
IMS is an immune stimulant that has been shown to significantly increase the
survival of farmed shrimp and the productivity of shrimp farms.

Since the year end, in March 2010, the FDA issued the conclusion of its review of the AAS “Claim Validation” study and indicated that the remaining sections would be issued in due course. The Company has received letters from the Center for Veterinary Medicine (“CVM”) advising that they have all the necessary answers for three out of the total of seven parts of their examination of the application. This recent letter indicates acceptance of the AAS product claim or efficacy. The Company believes that the reviews for the remaining four parts of the examination are very nearly complete. Management has worked constructively with CVM’s reviewers to answer all questions and is confident of a successful outcome in the near future.

The delay, however, has meant that AquAdvantage® Salmon eggs from the 2009 spawning, which were available for commercial trials if approval had been forthcoming, have been discarded. The next spawning will occur in the fourth quarter of 2010, which will produce a batch of AAS eggs for trials and for sale in early 2011.

Oettinger is one of Germany’s largest brewers with seven plants and approximately ten coppers producing c9m hectoliters of beer per annum. The PDX system will be installed at the Braunschweig brewery which is one of Oettinger’s largest.

It is expected that after being operational for a limited period, the PDX brewing system will be rolled out across the remainder of Oettinger’s breweries over the course of the next year.

There are an estimated 15,000 copper installations globally (source: PDX) equating to an addressable market of €3bn (assuming €200,000 per copper) for system installations alone. The top ten brewers represent over 63% of the market (Source: Barth Report 2008 – 2009) – PDX is targeting ‘design wins’ with global brewers which should lead to ongoing business as brewers replace existing equipment. Please see our note dated 26th February for more detail of the benefits and economics of the PDX brewing system.

This contract represents the first commercial brewing agreement for the Group under new management and closely follows the recent ethanol contracts. This now means that three of the initial four lines of business identified by management are now revenue producing or have commercial contracts (Ethanol, Brewing, Fire).

With strong newsflow expected over the coming months we re-iterate our BUY recommendation and 762p target price.