Establishment of Instem India

26 March 2012

Instem plc
("Instem", the "Company" or the "Group")

Establishment of Instem India

Instem plc (AIM: INS.L), a leading provider of IT applications to the global early development healthcare market, is pleased to announce the establishment of Instem India Private Limited (“Instem India”), a wholly owned subsidiary of the Company.

Instem India will be based in Pune, approximately 80 miles east of Mumbai, close to a large concentration of IT and life sciences companies. Two independent contractors, who have been working in the region for Instem for several years, will immediately be transitioned to full-time permanent employees. It is anticipated that this will grow to be a core team of 4-5 permanent technical staff, capable of contributing to a broad range of internal software development and product testing activities. Instem’s existing customers in the region include Advinus Therapeutics, based in Bangalore, which in January increased its user licences for Instem software by 40%.

The local operation will improve Instem’s ability to rapidly and cost effectively respond to new opportunities requiring additional software resources in India. The team will extend Instem’s ability to comprehensively support its growing client portfolio in the Asia Pacific region, which accounted for over 40% of the new Provantis client sites over the last three years.

The team will also be able to oversee work undertaken by additional contractor resources employed in the region, where well-qualified, experienced staff can be quickly added for short or long-term assignments.

With high quality IT infrastructure in place, a 5.5 hour time zone difference to the UK and closer proximity to Instem’s Shanghai office, Instem India will be well connected to the wider Instem team.

In the longer term, we anticipate that Instem India will provide a focal point for sales support and service delivery as the Southern Asian market develops.

Phil Reason, Chief Executive Officer of Instem, commented: “Instem continues to widen its presence beyond its more traditional markets of North America, Europe and Japan to emerging markets, most notably in the Asia Pacific region. These markets are growing in importance as the number of early development facilities increases, and they move towards a greater level of study management automation in harmony with their Western counterparts.

We anticipate that our newly established presence in Pune, India, will greatly assist in rapidly and cost effectively responding to new business opportunities for the Company both globally and within the region.”

For further information, please contact:

Instem plc www.instem.com
Phil Reason, CEO +44 (0) 1785 825600
Nigel Goldsmith, CFO  
N+1 Singer (Nominated Adviser & Broker) +44 (0) 20 7496 3000
Richard Lindley  
Nick Owen  
James White  
Wallbrook Financial PR Tel: +44 (0) 20 7933 8000
Paul Cornelius or instem@walbrookpr.com
Sam Allen  
Helen Cresswell  
Paul Whittington  

About Instem

Instem is a leading supplier of IT applications to the early development healthcare market delivering compelling solutions for data collection, management and analysis across the R&D continuum. Instem applications are in use by customers worldwide, meeting the rapidlyexpanding needs of life science and healthcare organisations for data-driven decision making leading to safer, more effective products.

Instem’s portfolio of software solutions increases client productivity by automating study-related processes while offering the unique ability to generate new knowledge through the extraction and harmonization of actionable scientific information.

Instem supports over 450 clients through full service offices in the United States, United Kingdom and China with additional locations in Japan and India.

To learn more about Instem solutions and its mission, please visit instem.com.