New Agreements

SURGICAL INNOVATIONS GROUP PLC 4 August 1999 POSITIVE MOVES FOR SURGICAL INNOVATIONS Surgical Innovations Group plc (Surgical Innovations), the AIM listed provider of medical products, today announces that it has recently entered into two agreements that will further secure its position in the medical device arena: Agreement with Genzyme to design and manufacture new keyhole surgery device: The first batch of keyhole surgery devices manufactured by Surgical Innovations for a subsidiary of Genzyme Corporation, Genzyme Surgical Products, is due to be shipped to France later this month. This follows an agreement signed earlier this year with Genzyme for Surgical Innovations to design and manufacture a new 'port access device' (used for creating the point of entry in keyhole surgery) which will reduce the costs associated with this type of surgery. The 'resposable' product combines both reusable and disposable components. The manufacturing agreement is expected to add in excess of £200,000 to sales for Surgical Innovations over the next 12 months. Genzyme will own and market the product with Surgical Innovations as the sole manufacturer. Research agreed with Oxford University to develop existing autologous blood product: The department of Engineering Science at Oxford University, headed by Professor Brian Bellhouse, has agreed to undertake a research project to develop the next generation of blood filtration technology for Surgical Innovations' intraoperative ABT programme. Autologous blood transfusion (ABT) is the use of one's own blood during medical procedures requiring a transfusion. The project funded by Surgical Innovations will begin in August for a five month period and will look at ways of improving the speed and volume of blood processed in the existing product, which Professor Bellhouse helped develop. The demand for autologous blood products looks set to increase. In December last year, as a result of the Government's White Paper for modernising the NHS, an objective was set (with the aim of being achieved by March 2000), to routinely inform patients of the availability of autologous blood. Surgical Innovations is currently the only UK manufacturer of autologous blood products. Commenting on the developments, Ian Lomas, Managing Director of Surgical Innovations said: 'The Genzyme deal has proved that our investment in research is paying off. We aim to push hard on our design projects that lead to manufacturing opportunities as we believe this will give us an edge over our competitors.' He continued: 'The research being undertaken by Oxford University will help us to secure our position in the autologous blood market, where we are already seeing an increase in the global requirement for autologous blood.' For further information contact: Ian Lomas Surgical Innovations Group plc Tel: 0113 230 7597 Keeley Middleton Citigate Dewe Rogerson Tel: 0113 297 9899