Spinal Disc Licence

Aortech International PLC 01 August 2005 For immediate release 1 August 2005 AorTech International plc ('AorTech' or the 'Company') Spinal Disc Licence AorTech International plc announces the signing of a non-exclusive technology licence and material supply agreement with Pearsalls Development Limited ('Pearsalls') of Somerset, UK for its fatigue resistant, biostable polymer, Elast-Eon(TM). The agreement includes a nominal up-front fee and anticipates a series of escalating pre-commercial co-development milestone payments. If these milestones are accomplished, the agreement may generate revenue for AorTech of approximately £1.0 million over the development period. The agreement contains a single digit royalty for AorTech on end product sales in the commercial phase. The specified field of development is for spinal disc products with a focus on the lumber spine. The agreement anticipates that AorTech will supply moulded Elast-Eon(TM) components to Pearsalls and contains provisions for the expansion into other orthopaedic applications, along with incremental revenue for AorTech. Commenting on the agreement, Frank Maguire, AorTech's Chief Executive said: 'The spinal disc replacement market is multi-billion and is projected to grow at a rapid pace throughout the next decade. AorTech has a number of active material technology programs underway with orthopaedic product technology companies and is delighted that this first partnership with Pearsalls can be announced today'. For further information please contact: AorTech International plc 00 1 801 201 4336 Frank Maguire, Chief Executive Buchanan Communications 020 7466 5000 Ben Willey, Lisa Baderoon, Rebecca Skye Dietrich Notes to Editors: AorTech International plc is a public limited company formed under the laws of Scotland, UK and is traded on the Alternative Investment Market, a market operated by the London Stock Exchange plc, under the trading symbol AOR. Additional material concerning AorTech International is available on the Company's website at www.aortech.com , or may be obtained by contacting the Company's Investor Relations firm, Buchanan Communications Limited. This information is provided by RNS The company news service from the London Stock Exchange