Re Contract

Aortech International PLC 31 January 2001 AORTECH INTERNATIONAL PLC Elast-EonTM Agreement Signed AorTech International plc, the Scottish-based developer and manufacturer of cardiovascular devices, announces that Heads of Agreement for the licensing and supply of its Elast-EonTM material has been signed with JOMED N.V., a major European cardiovascular device company. The agreement is for the supply of Elast-EonTM for use in stents and is for a term of 15 years. This represents an agreement secured by AorTech from the number of Material Evaluation Agreements which are in place with key medical device companies. The Agreement includes the payment of licence fees and and royalties by JOMED, with JOMED committed to developing stents with the Elast-EonTM material for sale in both Europe and USA. The range of Elast-EonTM materials, that were developed in Australia with Government funding, are unlike any polyurethanes developed to date, and have widespread uses in medical technology as a result of their combination of desirable characteristics. The new polymers are bio-compatible, non-thrombotic, durable and flexible, offering the possibility of being used in a range of medical implantable devices. The materials are being used in AorTech's Tri-Leaflet valve which offers the possibility of replacing both current tissue and mechanical valves. Eddie McDaid, Managing Director of AorTech International, commented: 'The signing of this Heads of Agreement with JOMED represents a significant commercial transaction for the Elast-EonTM material for use in the medical device sector. We are pleased that JOMED, following 12 months evaluating Elast-EonTM, has determined its use suitable for stents. I am confident that this Agreement is one of a number of licence agreements which will be completed in the future with several medical device companies and that the Elast-EonTM material will in future years be recognised as the material of choice for long term medical implants.' Tor Peters, President and CEO of JOMED, said: 'JOMED has carried out an extensive evaluation of Elast-EonTM over the past 12 months and have determined its superior mechanical properties to other known biomaterials. JOMED will be committing considerable resources to the development of stents with the Elast-EonTM material through the regulatory procedures and requirements for both Europe and the USA.' 31 January 2001 ENQUIRIES: AorTech International plc Tel: 01698 746699 Eddie McDaid, Managing Director College Hill Tel: 020 7457 2020 Michael Padley / Nicholas Nelson For further information, visit AorTech's website at www.aortech.com Copies of this statement will be available for a period of 14 days from the Company's registered office: Phoenix Crescent, Strathclyde Business Park, Bellshill, Scotland ML4 3NU.