Convertible Loan Notes

Surgical Innovations Group plc Convertible loan notes On 23 May 2005, Surgical Innovations Group plc (the 'Company') wrote to holders of the Company's 6.5 per cent. Unsecured Convertible Loan Notes 2005 (the 'Notes') ('Noteholders') to give notice, in accordance with the conditions endorsed on the Notes, that the Company wished to convert compulsorily all of the Notes currently in issue into ordinary share capital of the Company at the rate of 26.6667 pence nominal of ordinary share capital of the Company for every £1 nominal of the Notes. This equates to a price per ordinary share of 3.75p per share. Each Noteholder had the right to give the Company written notice within 30 days of service of the notice to require the Company, in lieu of converting the Notes, to repay the whole or part of the Notes held by him at par, together with all interest accrued thereon. The period of 30 days expired at 5.00pm on 22 June 2005 and, by that time and date, Noteholders of 67,596 Notes had notified the Company that they wished the Company to repay those Notes at par, together with all interest accrued thereon. The Company will be making this repayment to those Noteholders by 31 July 2005. The Company received notice that Noteholders of 1,249 Notes wished to convert those Notes into ordinary share capital of the Company. The Company had the right to convert the balance of the Notes, which totals 41,362 Notes, into ordinary share capital of the Company. Therefore, in total, the Company has converted 42,611 Notes into ordinary share capital of the Company at the rate of 26.6667 pence nominal of ordinary share capital of the Company for every £1 nominal of the Notes. None of these Noteholders is entitled to receive a fraction of an ordinary share and the balance of any nominal amount of any Notes so arising will be retained by the Company. In aggregate, 1,136,294 new ordinary shares of 1p each have been issued as a result of the conversion of the 42,611 Notes into ordinary share capital of the Company. The new ordinary shares rank pari passu with the existing ordinary shares. An application for the 1,136,294 new ordinary shares of 1p each to be admitted to trading on AIM will be made and it is expected that the new shares will be admitted to trading on 7 July 2005. Enquiries: Surgical Innovations Group Graham Bowland, Finance Director Tel: 0113 230 7597 Tim Feather Tel: 0161 838 9140 Westhouse Securities LLP