Re Agreement

Advanced Medical Solutions Grp PLC 7 December 2000 ADVANCED MEDICAL SOLUTIONS SIGNS USA DEAL TO SELL SPYROFLEXR BRAND TO AGS LABS INC. Winsford, 7 December 2000: Advanced Medical Solutions Group plc announced today that it has signed an agreement with AGS Laboratories Inc. of Texas whereby AGS has taken over sole distribution for its SpyroflexR range of consumer first aid dressings and has rights to acquire the associated trademark. The SpyroflexR brand name was acquired by Advanced Medical Solutions in 1999 and comprises a range of products for the treatment of cuts, grazes, minor bleeding wounds and blisters based on proprietary polyurethane membrane technology. This range had been sold for a number of years into the US outdoor sports market for climbers, runners and cyclists with AGS as the primary distributor. In January it was also launched into the pharmacy first aid channel by Advanced Medical Solutions via sales agents. Under this new deal, AGS will now sell and distribute the range into both markets in the USA. Advanced Medical Solutions retains the patents for the products and will continue to develop and manufacture the complete product range. AGS will build the brand and has the right to acquire the SpyroflexR trademark for a total consideration of $450,000, subject to achieving minimum annual sales volumes. Commenting on the deal, Don Evans, Chief Executive of Advanced Medical Solutions Group plc, said: 'We are delighted to have secured this deal and believe that AGS remains the ideal partner for the SpyroflexR range of products in the United States. The structure of the deal including the potential to acquire the SpyroflexR trademark provides an incentive for AGS which we believe will ensure the continued strength of our own order book going forward.' Jim Tehan, President of AGS Inc. added: 'The SpyroflexR range of products has been extremely popular with our customers and this deal provides us with the flexibility to further build the brand in the USA. We look forward to maintaining our relationship with Advanced Medical Solutions and taking advantage of further products which they develop to accompany the current product offering.' Enquiries: Advanced Medical Solutions Group plc Tel: 01606 863500 Don Evans, Chief Executive Mary Tavener, Finance Director Graeme Brookes, Sales & Marketing Director www.admedsol.com Gavin Anderson & Company Tel: 0207 457 2345 Philip Ward / Charlotte Stone AGS Inc. Tel: 001 972 579 3300 Jim Tehan, President This press release includes forward-looking statements based on management's current expectations. Such forward-looking statements refer to management's plans and objectives for future operations, products and services. Factors that could cause future results to differ materially from expectations include, but are not limited to, the availability of resources, changes in general economic and business conditions, government regulatory actions, competition and general business, technical and other risks related to the Company's business and operating environment.
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