New Distribution Contract

Surgical Innovations Group PLC 14 January 2002 14 January 2002 SURGICAL INNOVATIONS SIGNS £2.5m DISTRIBUTION CONTRACT Surgical Innovations Group plc ('Surgical'), the designer and manufacturer of medical devices, is delighted to announce that it has today signed a major distribution contract with Aesculap Inc, worth an estimated £2.5m over three years. Aesculap Inc, an American company established in 1977 is a division of Aesculap AG & Co KG of Tuttlingen, Germany, the world's largest supplier of finely crafted surgical instruments. The contract is for the distribution of Surgical's new range of single use scissors, which greatly reduce the risk of infection during surgical procedures. The scissors are part of Surgical's Logic(TM) instrument range, which also features the patented F4 re-usable handle. The product line will be marketed in the US through Aesculap's Surgical Business Unit under the brand name Sovereign(TM). Commenting on the deal, Stuart Moran, technical director said: 'This contract marks a significant step in Surgical's development. As we have previously indicated in our annual report and interim statement, we have increased our focus on the development of single use devices. I believe that this contract confirms that decision and provides a firm base for future growth.' Enquiries: Surgical Innovations Group Graham Bowland, Finance Director Tel: +44 (0)113 230 7597 Stuart S Moran, Technical Director Binns & Co PR Ltd Tel: +44 (0)113 242 1171 Keeley Middleton/Sophie Morton Background Notes: Aesculap Inc Aesculap Inc, an American company established in 1977 is a division of Aesculap AG & Co KG of Tuttlingen, Germany, the world's largest supplier of finely crafted surgical instruments. Aesculap AG, a member of the B.Braun family of companies, offers a complete line of 17,000 instrument patterns for nearly every surgical application. B.Braun is one of the world's largest suppliers of superior medical products and value added services for hospitals and non-clinical areas. B.Braun Medical offers a full line of IV accessories and critical care products and is a world leader in the manufacture of epidural anaesthesia. Surgical Innovations Reuters Code: SUN.L Market: AIM - Medical equipment and supplies. Surgical Innovations Group plc was formed in 1998 by the merger of Haemocell plc and Surgical Innovations Ltd. Surgical designs and manufactures medical devices which are sold through its international network of distributors, licensees and OEM customers. The Group is divided into 4 key business and product areas: Minimally Invasive Surgery products, Autologous Blood Transfusion products, ION Products solutions and Product Licensing. Minimally Invasive Surgery (MIS): Surgical Innovations has been at the forefront of MIS working closely with clinicians in both training and product development. Autologous Blood Transfusion: Surgical Innovations' blood collection systems simplify the process of providing blood for both intra- and post-operative treatment and care. ION: Surgical Innovation's ion division focuses on the provision of design and manufacturing solutions both internally and to other healthcare companies. Licensing: Surgical Innovations' key royalty income derives from licensing its Endoflex product to Snowden Pencer in the US. Further licensing opportunities are expected to arise as its portfolio of Intellectual Property Rights increases. Directors: Douglas Liversidge CBE - Non-Executive Chairman Graham Bowland - Finance Director Stuart Moran - Technical Director Colin Glass - Non-Executive Director Raymond Simkins - Non-Executive Director