US Distribution Agreement

Surgical Innovations Group PLC 30 July 2007 Press Release - final 30 July 2007 Surgical Innovations Group plc ('SI' or 'The Group') US Distribution Agreement Surgical Innovations Group plc (AIM: SUN), the designer and manufacturer of innovative surgical devices, announces that it has signed a distribution agreement with MGM Med Inc. ('MGM'), a wholesale distributor of medical and hospital equipment, for the provision of its laparoscopic equipment to the US market. Under the terms of the agreement, MGM has the right to use the Surgical Innovations ('SI') name and will promote the SI brand through its newly formed subsidiary, Surgical Innovations US Inc. ('Surgical US'). Surgical US will become the master distributor of SI branded products in the US and will engage with new key channel partners including surgical procedural tray companies, major medical distributors and small independent representatives that service more than 6,000 hospitals in the US market The agreement incorporates a minimum sales target of US$20 million, net to SI, over the five year term. The agreement has already led to the appointment by Surgical US of its first channel partner, Tri-anim Health Services, Inc. ('Tri-anim'), a leading specialty distributor of medical and hospital equipment in the US. Tri-anim will begin sales of SI's single use laparoscopic scissors from August 2007, initially in the south east of the US and increasing thereafter on a regional basis, eventually providing nationwide coverage. Mary Meyer, President and CEO of Surgical US, said: 'The US market for single use scissors is currently valued at over US$125 million and we see huge potential for SI products throughout the entire US laparoscopic equipment market.' Graham Bowland, Finance Director of Surgical Innovations Group plc, commented: 'The creation by MGM of Surgical US provides new and exciting routes to market for SI's products, further expanding our presence within North America. The use of the Surgical Innovations trademark will increase our brand recognition across the US and will support our strategy for future growth.' - Ends - For further information: Surgical Innovations Group plc Graham Bowland, Finance Director Tel: +44 (0) 113 230 7597 graham.bowland@surginno.co.uk www.sigroupplc.com Hanson Westhouse Limited Tim Feather / Matthew Johnson Tel: +44 (0) 113 246 2610 tim.feather@hansonwesthouse.com www.hansonwesthouse.com Media enquiries: Abchurch Gareth Mead / Justin Heath Tel: +44 (0) 20 7398 7700 gareth.mead@abchurch-group.com www.abchurch-group.com Notes to Editors: Surgical Innovations Group plc specialises in the design and manufacture of innovative devices for use in minimally invasive surgery and industrial markets. The Group employs over 50 people and is headquartered in Leeds. The Group's medical division is focused on strong international growth in two specialist areas namely minimally invasive surgery, where products are used in 'keyhole' surgery which is more accurately known as laparoscopic surgery, and products for autologous blood transfusion whereby a patient's own blood is recycled. The Group's industrial division utilises Surgical Innovations' core medical device design expertise and technology in innovative engineering applications. For more information, see www.sigroupplc.com This information is provided by RNS The company news service from the London Stock Exchange