Final Results

Deltex Medical Group PLC
07 April 2008

                            Deltex Medical Group plc

            Preliminary results for the year ended 31 December 2007

7 April 2008 - Deltex Medical Group plc ('Deltex Medical' or 'Company'), the
UK's leading haemodynamic monitoring company, today announces its preliminary
results for the year ended 31 December 2007.

Financial Highlights

   •Turnover increased by 18.7% to £4,168,000 (2006: £3,511,000), with growth
    in all key territories
   •UK surgical probe sales up over 50%
   •USA probe sales up nearly 50%
   •Recurring orders from key International distributors up 45%
   •Gross margin improved to 70.0% from 66.3%
   •Operating loss after investment in gearing up for next stage of growth
    £2.2million (2006: £2.0million)
   •Cash of £763,000
   •Next phase of US expansion to be financed by £666,667 of committed new
    equity capital from a US development fund at 22.0p per share

Operating Highlights

   •CardioQ(TM) established as a standard of care in fast-track surgery in two
    key London teaching hospitals
   •UK surgical probe sales overtook intensive care probes sales in the
    second half
   •CardioQ at the top of the UK NHS innovation agenda
   •Rapid implementation recommended by UK health minister
   •First physician payments made under new reimbursement regime in USA
   •Largest and most successful implementation project ever undertaken
    completed in USA
   •Colorectal surgeons in Spain embark on the largest audit of CardioQ in
    fast-track surgery
   •Probe manufacturing capacity doubled
   •New 'I2' awake patient probe launched - significantly expanding
    opportunity

Nigel Keen, Chairman of Deltex Medical, said:

'Deltex Medical made significant progress during 2007 in all its key markets,
with major milestones in market development achieved in the USA.

'The momentum driving sales growth in 2007 has been maintained into 2008 and the
first quarter of 2008 has seen a number of significant events that will enable
the Company to sustain and build upon 2007's progress throughout 2008. Not least
of these is the first reimbursement of doctors for use of the CardioQ in
operating theatres in the United States.'

For further information, please contact:-

Deltex Medical Group plc                        01243 774 837
Nigel Keen, Chairman                            [e-mail]
Andy Hill, Chief Executive                      [e-mail]
Ewan Phillips, Finance Director                 [e-mail]

Gavin Anderson & Company                        0207 554 1400
Deborah Walter                                  [e-mail]
Robert Speed                                    [e-mail]
Stuart Macaulay                                 [e-mail]

Charles Stanley Securities
Nominated Advisors                              020 7149 6000
Philip Davies                                   [e-mail]
Russell Cook                                    [e-mail]

Notes for Editors

Deltex Medical manufactures and markets the CardioQ monitor, which uses
disposable ultra-sound probes inserted into the oesophagus to determine the
amount of blood being pumped around the body - 'circulating blood volume'.
Reduced circulating blood volume is known as hypovolaemia, which leads to
insufficient oxygen being delivered to the organs. This causes medical
complications including peripheral and major organ failure which can lead to
death. Hypovolaemia, which is akin to severe dehydration, affects virtually
every patient having surgery because of the combined effects of pre-operative
starvation, the impact of the anaesthetic agents and trauma from the surgery
itself. Using fluids and drugs, guided by the CardioQ, to optimise the amount of
circulating blood significantly reduces post-operative complications allowing
patients to make a faster, more complete recovery and return home earlier.

The CardioQ incorporates the Company's proprietary software and a small
diameter, easy-to-use, minimally invasive, disposable oesophageal probe that is
used for transmitting and receiving an ultra-sound signal. By using this
technology, the CardioQ provides clinicians with the ability to optimise
critically ill patients and those undergoing routine moderate to major surgery
through the controlled administration of fluid and drugs. Haemodynamic
optimisation has been proven to improve the speed and quality of patient
recovery and reduce hospital stay.

There are already around 1,500 CardioQs currently in use in hospitals worldwide
and distribution arrangements are in place in over 30 countries. In addition,
there are currently more than 90 clinical publications on the use of the CardioQ
which have repeatedly:-

   •Validated the results of the Monitor against known standards for
    measuring cardiac output, demonstrating that the technology works

   •Proved that the CardioQ works in a wide range of surgical procedures

   •Demonstrated that the Company's technology provides significant health
    and economic benefits by helping to reduce post-operative complications and
    length of hospital stays of between 30 and 40 per cent for a wide range of
    patients.

The SupraQ is an entirely non-invasive device which uses an ultrasound probe
held at the base of the patient's neck to track the flow of blood in the aorta;
it presents the same data as the CardioQ in a similar format and is used for
taking snapshots or monitoring over short periods.


Chairman's Statement

Deltex Medical made significant progress in 2007, achieving sustained and
accelerating growth in each of its key markets. Revenue for the Group increased
by just under 19% from £3,511,000 in 2006 to £4,168,000.

Sales of disposable probes which amounted to £3,185,000 accounted for 76% of
total revenue. In the second half of the year in the UK, our home market, sales
of surgical probes overtook those for intensive care for the first time. The UK
surgical probe business grew by approximately 55% over 2006.

Cash at the year-end and operating losses for the period were in line with
expectations at £763,000 and £2,223,000 respectively. Cash consumption for the
year was also in line with the Company's expectations as the Company started to
reconfigure its operations in anticipation of its next phase of growth.


Group Summary

Deltex Medical's CardioQ(TM) oesophageal Doppler monitor (ODM) is changing the
way doctors care for patients having major surgery or who are in intensive care.
Scientific evidence of the highest quality from independently conducted,
randomised controlled clinical trials, is being translated into routine clinical
practice in leading hospitals around the world and as a consequence patients are
recovering from their surgery faster and leaving hospital sooner and in better
health than they otherwise would do.

The weight of evidence supporting the routine use of the CardioQ is so
overwhelming that a US Government-commissioned technology assessment published
early in 2007 stated that its use in surgery leads to a 'clinically significant
reduction in major complications', 'a clinically significant reduction in the
total number of complications' and 'to a reduction in hospital stay'. The
evidence supporting each of these conclusions was considered to be 'strong'.
Strong in the setting of a formal technology assessment is defined as: 'Evidence
supporting the qualitative conclusion is convincing. It is highly unlikely that
new evidence will lead to a change in this conclusion'.

Based on this technology assessment, the US Government agency responsible for
healthcare for the elderly and the poor, the Centers for Medicare and Medicaid
Services (CMS), determined that use of the CardioQ was 'reasonable and
necessary' and that the proven benefits warranted doctors being paid
('reimbursed') for using it in Medicare and Medicaid patients. Already, private
insurers are following the CMS lead and are reimbursing doctors that manage
their patients using the CardioQ.

In the UK, two world-renowned London teaching hospitals have made use of the
CardioQ routine practice (that is, a standard of care) within their enhanced
surgical recovery programmes for patients having major bowel surgery. Similar
care packages are being developed for other major surgical procedures performed
at these hospitals. Many other hospitals, district general and large teaching
instutions alike, are working towards implementation of surgical care packages
that incorporate routine use of the CardioQ.

Doctors and healthcare administrators around the world are increasingly aware of
the potential health and economic benefits of wide-scale adoption of the CardioQ
in their hospitals. Our primary role is to faciliate implementation of the
CardioQ as a standard of care through a programme of structured education,
training and post-implementation support that enables doctors to help their
patients recover more fully and more quickly from their surgery and hospital
managers to provide a better quality of care more efficiently and more cost
effectively.

The CardioQ helps patients by enabling doctors to reduce the complications that
arise from a medical condition that is common to almost all patients having
surgery and many others in intensive care or arriving in the accident and
emergency department. This condition is known as hypovolaemia - a reduction in
circulating blood volume - and in surgical patients arises as a direct
consequence of the combined effects of pre-operative starvation, the anaesthetic
agents used to put the patient to sleep and the blood and fluid losses
associated with the surgical procedure itself. Hypovolaemia means that the body
struggles to get sufficient blood to the tissues and vital organs which are
consequently starved of essential oxygen. This can cause medical complications
including peripheral and major organ failure, which if not dealt with quickly
can lead to severe compromise or even death.

The body compensates for developing hypovolaemia through the sequential shut
down of the circulatory system and diversion of blood to critical organs. This
helps to maintain blood pressure at normal levels and preserve oxygen delivery
to those organs at the expense of other systems. The CardioQ uses disposable
ultrasound probes placed in the oesophagus to measure real-time blood flow which
is an earlier and much more sensitive indicator of changes in circulating blood
volume than blood pressure. This allows the doctor to detect and deal rapidly
with the early stages of hypovlaemia before it becomes a clinical problem. In
contrast, blood pressure-based monitoring systems, however sophisticated, are
unable to detect hypvolaemia until it is so severe that the body's compensatory
mechanism begins to fail, at which point the patient is in a critical condition.

Trading Results

Sales         2007      2007    2007      2007   2007   2007    2006      2006    2006      2006     2006    2006
            Probes  Monitors  Probes  Monitors  Other  Total  Probes  Monitors  Probes  Monitors    Other   Total
             units     units   £'000     £'000  £'000  £'000   units     units   £'000     £'000    £'000   £'000
Direct
markets

UK CardioQ  25,730        60   2,041       398    135  2,574  24,075        53   1,837       324      124   2,285
UK SupraQ        -         3       -        60      -     60       -        14       -       280        -     280
            -----------------------------------------------------------------------------------------------------
UK total    25,730       63    2,041       458    135  2,634  24,075        67   1,837       604      124   2,565
USA          7,075       12      518        63      6    587   4,760        11     349        58        5     412
Spain          520        9       50        85      1    136     110         -      12         -        -      12

Distributor
markets

Europe       9,400       25      436       102      6    544   5,515         6     264        25       11     300
Far East &
Latin        4,240       36      140       122      5    267   4,730        15     170        51        1     222
America     -----------------------------------------------------------------------------------------------------
            46,965      145    3,185       830    153  4,168  39,190        99   2,632       738      141   3,511
            -----------------------------------------------------------------------------------------------------


Sales

Revenue for the group in 2007 was £4,168,000 compared to £3,511,000 in 2006, an
increase of almost 19%. Revenue derived from sales of disposable probes was
ahead by 21% over the prior period (2007: £3,185,000; 2006: £2,632,000). These
results demonstrate continued strong growth in demand and uptake of the
CardioQ's offering.

Revenue generated from sales of CardioQ monitors was up by 68% from £458,000 in
2006 to £770,000 in 2007, with a notable increase in larger, multiple monitor
installations as hospitals seek to implement use of the CardioQ as a standard of
care in major surgical procedures and in intensive care.

The Company continued its policy of selling SupraQs to hospitals willing and
able to undertake research into establishing potential markets for this wholly
non-invasive technology as part of the the development programme. Excluding
SupraQ sales, Group sales grew by 27% year on year.

Cash

Cash on hand at the end of the period was £763,000. Cash consumption in the
second half of the year and the underlying rate of cash burn going into 2008
were in line with the Company's plans. The sales growth delivered in the
Companies key markets equated to an increase of an average £64,000 per month in
the revenue run-rate: these increases in invoiced sales translate in due course
into larger regular cash in-flows.  Over the year the Company made a small
number of selective increases in the underlying cost base (i.e. the normalised
run-rate of costs): net of areas where the Company reduced its cost base, these
increases were considerably lower than the increase in the underlying revenue
run-rate, meaning the Company made significant continued progress towards
eliminating its underlying cash burn. After taking account of the cash needed to
fund the remaining underlying cash burn, the Company continued to use the
remaining cash available to it to invest in development projects and one-off
items aimed at creating longer term value.

Despite this continued reduction in underlying cash burn, total cash consumption
before financing was £2,231,000, £529,000 higher than in 2006 (£1,702,000).

Cash consumption included a net increase in working capital of £302,000 and
expenditure on a number of key projects aimed at positioning the Company for its
next phase of growth. These included the costs of developing and launching the
new I2 range of probes; developing the next generation monitor, the
CardioQ-ODM(TM), which is to be released shortly; extending the clean room in
which we build probes so as to double its capacity; developing and building
prototypes of the next generation SupraQ monitor; bringing in-house the first of
a series of sub-assembly processes as the Company moves towards increased
automation of probe manufacture and undertaking a project to totally redesign 
the probe ultrasound componentry to make it more suited to mass production as
well as continuing the trend towards increased margins.

The Directors expect to continue to invest in these and other important medium
and long-term projects over time depending on the cash and other resources
available to the Company at any given point.

The Company announces today that it has accepted an irrevocable undertaking from
Nexus Medical Partners II, LP to subscribe for 3,030,303 ordinary shares of 1p
each at a price of 22.0p per share to raise £666,667. The funds to be invested
are specifically for use in expanding the US market, including the hiring of
additional management and field staff in key locations to manage and support the
growing demand for the Company's products. The funds are managed by Nexus
Medical Partners on behalf of a US State Government to promote economic
development.

The undertaking has been accepted by the Company subject to appropriate
approvals being obtained at the Company's forthcoming Annual General Meeting and
assumes no material adverse changes in the Company's business prior to the
shares being issued. Ed Snape, a non-executive director of Deltex Medical, is
also a principal of Nexus Medical Partners.

The shares will rank pari passu with the existing issued shares of the Company.
This allotment is conditional on the appropriate authorities being received at
the next general meeting of the Company. Following the issue of these new
shares, subject to no changes, the Company will have a total of 95,931,956
ordinary shares in issue. This total includes an allotment of 413,746 new
ordinary shares which are also subject to approval at the next general meeting
of the Company as announced on 25 January 2008. Application will be made for
these shares to be admitted to trading on the Alternative Investment Market.

Operating results

Operating losses for the year were £2,223,000 compared to £2,014,000 in 2006. As
well as the impact of the one-off longer term investment projects noted above,
this operating result is after a number of non-cash accounting charges,
including £328,000 for share based payment, £244,000 charges in respect of
research work undertaken by hospitals under barter arrangements and movements on
all provisions of £89,000.

Markets

Deltex Medical sells its products directly to hospitals, using its own team of
sales people and clinical trainers in the United Kingdom, the United States of
America and in Spain. Early in 2008 we took the first step towards establishing
a 'direct' presence in Germany, taking in-house responsibility for sales and
training while engaging the help of a distributor for regulatory and logistical
support. In all other territories we work with a network of distributors which
we support through a small UK-based sales and clinical training team.

Our goal is to achieve market leadership in the provision of systems for
haemodynamic management through successful sales operations in each of the UK,
USA, France, Germany and Japan - the leading healthcare markets in the world
today - and become recognised as a leading global medical technology company
through innovation both in technology and in delivering that technology to the
end user.


United Kingdom

Sales of CardioQ monitors specifically for use in operating theatres were ahead
of the prior year despite the UK NHS focusing its efforts on restricting spend
in March in response to political pressure to produce a surplus at the year-end.
Sales of surgical probes in 2007 reflected the accelerating adoption of routine
use in the operating theatre and in particular as part of emerging enhanced
recovery surgical care protocols. In the second half of the year surgical probe
sales volumes overtook intensive care probe volumes for the first time.

In 2007 we sold 14,415 surgical probes compared to 10,440 in 2006, an increase
of 38% in the number of patients treated. The underlying increase in surgical
probe sales run-rate, the amount of probes sold each month, over the course of
the year was in excess of 50% - a remarkably strong performance in a very
difficult market.

In the UK critical care market, the Company saw a decline in its probe sales of
approximately £128,000. This was caused primarily by a trend amongst UK doctors
to try to keep patients awake and spontaneously breathing as much as possible
while in intensive care. The I2 probe range launched in September 2007 has meant
the CardioQ can now be used on those patients in intensive care who are now
awake but would previously have been sedated. Despite this fall in probe volumes
the CardioQ remains the cardiac output monitoring technology of choice in a
majority of UK intensive care units: indeed the Company expects the forthcoming
results of a survey of critical care units in England and Wales to show that the
Company has further extended its leading position in this market.

During 2007 use of the CardioQ has been established as part of the written
standard treatment protocols in colorectal surgery at two of London's most
important teaching hospitals: University College London Hospital (UCLH) and St
Thomas' Hospital. The CardioQ has played a central role in the success to date
of the 'ESTREP' enhanced recovery programme jointly developed between surgeons
at the two sites. After six months ESTREP had already delivered reductions in
average lengths of hospital stay of nearly a half for colorectal surgery. Both
sites are in the process of rolling the ESTREP programme out into other surgical
disciplines.

Applying a similar programme to that developed at UCLH and St Thomas' Hospital,
surgeons and anaesthetists from Darent Valley hospital in Kent have seen
material reductions in length of hospital stay and the time patients take to get
back to normal function after major bowel surgery. Patients treated using a
combination of minimally invasive surgical techniques and the CardioQ in the
context of an enhanced recovery programme left hospital on average after five
days and reported themselves feeling fully recovered after a further seven days:
a total of 12 days. By contrast patients treated with open surgery, no CardioQ
and outside the enhanced recovery programme only left hospital after an average
of 11 days (compared to an NHS average of 13 days), before needing another 29
days to feel fully recovered from the surgery: a total of 40 days. This means
that on average a patient treated under this new surgical protocol is 'back to
normal' (i.e back at work) before the average patient in the NHS has even been
discharged from hospital. While the CardioQ is only responsible for some of this
transformational change, it is better supported by clinical evidence than either
enhanced recovery techniques or laparoscopic surgery and the cost of treating a
patient with the CardioQ is only a fraction of the cost of laparoscopic surgery.

Despite the many practical issues facing UK doctors and healthcare managers
wishing to implement routine use of any new medical device technology as a
standard of care we have seen consistent and sustained growth in our operating
theatre business since its launch in 2003 and the Directors believe that ours
has been the fastest growing new broad application technology in NHS hospitals
since at least 2003.

It is the Directors' opinion that the success of our efforts in growing this
business on the basis of both compelling clinical and economic stories has
resulted in the CardioQ being chosen as a 'trailblazer' technology for two new
initiatives established by the Department of Health and the NHS - the Centre for
Evidence-based Purchasing and the National Technology Adoption Hub.

The Centre for Evidence-based Purchasing (CEP) aims to evaluate new technologies
and determine their merit based on objective analysis of published clinical data
through a process of technology assessment similar to that undertaken on
oesophageal Doppler monitoring in the USA by the Agency for Health Research and
Policy (AHRQ). It is anticipated that CEP will become the medical device
equivalent of the National Institute for Health and Clinical Excellence (NICE)
and that its recommendations will drive accelerated uptake of proven
technologies within the NHS. CEP has commissioned a technology assessment of
oesophageal Doppler monitoring from the Health Economic Research Unit at
Aberdeen University and is expected to publish its recommendations in 2008. The
Aberdeen report is currently scheduled for publication in October and CEP have
indicated that their own report may be published earlier than this.

In parallel with the CEP initiative, the Department of Health and NHS
established the NHS National Technology Adoption Hub in 2007. This body aims to
examine and recommend ways to overcome the practical issues that slow the
implementation of proven new medical technologies at the operational level
within the NHS. The mission of the NTAH is:

'...to work directly with the NHS at a clinical, managerial and procurement
level to identify and overcome the barriers to adoption for innovative
technologies which have already demonstrated clear benefits to patients and will
improve system efficiency.'

In selecting CardioQ as one of its first ever wave of projects, the NTAH project
selection panel initially considered a list of 24 technologies put forward by a
variety of NHS bodies including CEP, NICE, UKHTA (the UK Government's health
technology assessment agency), the NHS National Innovation Centre and the NHS
Institute for Innovation and Improvement. After an initial review these
technologies were reduced to a shortlist of six technologies from which the
first wave of four was selected after comprehensive due diligence. The CardioQ
was the only technology used for hospital in-patients to be selected.

The NTAH plans to project manage and audit implementation projects with three
NHS Trusts with a view to producing guidance on effective implementation of the
CardioQ for other NHS Trusts to follow. In March 2008, the first of these
Trusts, the Whittington in London, purchased four additional monitors in order
to expand significantly its CardioQ usage in operating theatres. Of the three
sites, the Whittington is both the smallest hospital and the most established
existing CardioQ user.

Since the year end UK sales have continued to demonstrate strong growth, with
sales of both CardioQ monitors and probes comfortably ahead of the corresponding
months in 2007. Sales of probes for use during surgery have continued to grow at
the rates experienced in 2007 and sales of probes into critical care units have
also been satisfactory. The Company's pipeline continues to grow strongly.


United States of America

The United States of America is the largest healthcare market in the world and
is a strategic imperative for any medical technology company with aspirations to
be truly global player. Once a medical technology is proven and approved for
sale, the single most important factor for success in this market is physician
reimbursement - the payment to the doctor using the technology for the effort
and expertise involved. It is important to note that physician reimbursement is
wholly unrelated to payment to the manufacturer for the technology, which is
dealt with by the hospital.

In 2007 sales of probes were almost 50% higher than in the prior year (2007:
7,075 units; 2006: 4,760 units). Our most successful hospital start-up to date,
in San Diego, California, where we tested our new US implementation model, was
an important contributor to this growth.

Sales of probes in the USA in 2007 was a reflection of changes in clinical
practice driven by a wider acceptance and understanding of the published
clinical data. The ability to claim reimbursement for use of the CardioQ is
anticipated to accelerate future adoption, but had no impact on sales in 2007.

In mid-2007 the US Government body responsible for the provision of healthcare
to the elderly and the poor, and the 'bellwether' for reimbursement that private
insurance companies invariably follow - the Centers for Medicare and Medicaid
Services (CMS) - published a memorandum stating that the use of oesophageal
Doppler monitoring in surgical patients requiring fluid optimisation and for
cardiac output monitoring of ventilated patients in the intensive care unit
would be reimbursed.

The breadth of this coverage determination is a testament to the wealth of
clinical data supporting the use of the CardioQ reviewed by the US government
Agency for Health Research and Quality and published as a technology assessment
early in 2007 as part of the reimbursement decision process.

Physician reimbursement is dependent upon three elements: firstly, the procedure
must be recognised by CMS as being reasonable and necessary for its patients in
order to be reimbursable ('covered'); secondly, the procedure must have a
reference code allocated to it to allow processing through the reimbursement
system and; thirdly, the code must be allocated a value that is then translated
into dollars in the physician's pocket once the claim is processed by regional
CMS payer.

Conservatively, this coverage determination is applicable to some 5,000,000
patients every year in the USA and represents a major milestone for Deltex
Medical.

Since the year end the Company has been notified by a small number of clinicians
that they have received reimbursement from private health providers and that the
vast majority of such payments have been towards the top of the range of
physician expectations. First claims have been filed with CMS by physicians from
a number of hospitals, although the Company has not yet been notified of any
payments actually made.

Early in 2007 we began working with one of the largest groups of anaesthetists
in the US who were seeking to establish use of the CardioQ as a standard of care
in surgery and in intensive care. This group provides services to 12 acute
surgical hospitals in southern California and is responsible for the care of
around 50,000 patients each year having surgery who could benefit from
management using the CardioQ.

Through our new implementation model, pioneered in the USA, we were able to take
the first of the group's hospitals from zero usage to treating around 25% of its
major surgical patients (more than 100 patients each month) in eight weeks of
focused, multidisciplinary education and training. During the training process
we hired a dedicated clinical trainer to provide ongoing support at the hospital
and we have continued to see probe usage grow in both surgery and in intensive
care. Early indications are that physician reimbursements recently made by key
private insurers will further increase usage over time.

Early in 2008 we embarked on the roll out the education phase of the
implementation model to the next two hospitals serviced by the anaesthetic
group. Monitors have been delivered to the second hospital ahead of formal
training being undertaken.

It is our expectation that we will see the percentage of patients treated using
the CardioQ in each of these sites expand as reimbursement in CMS patients is
finalised with the regional CMS contract payer.

Already we are seeing an interest in expanding adoption in existing hospitals
and a marked increase in interest from new hospitals wishing to embark on a
programme to make use of the CardioQ standard clinical practice.


International

Sales in our international markets were significantly ahead of those in 2006 as
the benefits of our programme to restructure key distribution arrangements
continued. Growth has been sustained in each of our key international
territories with overall underlying growth of around 30% year on year.

Direct International Markets

Through our new direct sales operation in Spain we have been working with the
head of the Spanish Society of Surgeons to establish use of the CardioQ as a
standard of care in colorectal surgery. This pilot project involves seven key
hospitals undertaking an audit of patient outcomes under a care protocol based
on the University College London Hospital and St Thomas' Hospital's ESTREP
programme. The results of this audit are expected to be presented to the
national colorectal surgery meeting in Spain late in 2008. If the results of the
audit mirror those seen elsewhere, the surgeons leading the project have
informed the Company that they expect to see the protocol established as
standard practice across Spain where in excess of 200 hospitals perform
colorectal surgery.

In January 2008 we changed our distribution arrangements in Germany and
established a small semi-direct sales operation. In the semi-direct model a
third-party distributor provides logistics and customer services, regulatory and
tender management support, while Deltex Medical is responsible for all sales,
marketing and clinical training. Our focus in Germany in 2008 is the continued
development of relationships with key anaesthetists, surgeons and hospital
administrators and establishing use of the CardioQ as a protocolised standard of
care in one of the country's leading teaching hospitals ahead of a wider rollout
in 2009.

Since the year-end the Charite hospital in Berlin, one of the largest teaching
hospitals in Europe, has embarked on a programme of evaluation and small,
focused clinical trials intended to establish the best way to incorporate
routine use of the CardioQ into a range of surgical procedures at the hospital.

Distributed International Markets

We continue to work with distributors in all the other international markets and
have seen particularly encouraging results since our decision to move the key
distributors on to monthly ordering patterns for probes following a stock
reduction exercise undertaken the first half of 2006.

The run-rate of probes sold across those territories on monthly ordering
schedules increased over the year from 550 to 800 probes per month.

We have only focused minimal time and effort on the Japanese market because,
although we have had approval to sell for some time, the level of reimbursement
negotiated by our former distributor (in this case to the hospital to cover the
cost of the probe) was inadequate. In 2007 we secured our right to sell in Japan
in our own name and will return to this market as and when it is appropriate and
feasible to do so.


Clinical Publications

Meta analysis

The technique of meta-analysis (a systematic scientific review which considers
related evidence as a whole) underpins many of the conclusions of Health
Technology Assessments (HTAs). It is also used heavily by doctors within
clinical circles to determine technologies and interventions which should be
established as standards of care.

The first independent meta-analysis of the randomised controlled clinical
outcome trials of ODM was undertaken by an eminent group of UK doctors and its
results were first presented in September 2006. It concluded that ODM reduces
post-operative complications and reduces length of hospital stay by an average
of nearly three days. The results of this review were presented at a number of
important clinical meetings over 2007 and the Directors understand that the
authors intend to submit it to a leading medical journal for publication in
2008.

In January 2008, a second meta-analysis, undertaken by doctors in New Zealand,
was published which concluded that ODM 'use for monitoring and optimisation of
flow-related haemodynamic variables improves short-term outcome in patients
undergoing major abdominal surgery'. This meta-analysis has just been published
in the journal Anaesthesia and is therefore the first meta-analysis to be
published in a leading peer-reviewed journal.

In March 2008, a third meta-analysis was published in a peer-reviewed journal.
This meta-analysis was conducted by doctors from the departments of surgery and
anaesthesia at the Cambridge University Hospitals NHS Trust. The analysis
examined results from the four previously published randomised controlled
clinical trials into the use of ODM in abdominal surgery that involved a total
of almost 400 patients.

The authors reported that use of ODM in abdominal surgery, based on the pooled
data analysed, resulted in significantly fewer post-operative complications and
a consequent significant reduction in length of hospital stay.

The directors are not aware of any randomised controlled study, either published
or pending publication, which shows any technology other than ODM to have been
used successfully to direct fluid administration during surgery to improve
patient outcomes and reduce hospital lengths of stay. Alternative approaches to
haemodynamic monitoring use derived rather than direct measurements of blood
flow and are unable to report changes in flow either as quickly or as
sensitively as ODM.

In July 2007 in his report 'A Framework for Action', prepared for Healthcare for
London a consultation group led by London's 31 NHS Primary Care Trusts,
Professor Sir Ara Darzi (now Lord Darzi, a UK Government health minister) noted
of the CardioQ:

'Seven randomised trials have shown simple use of cheap ultrasound technology to
reduce length of stay consistently by 2-3 days in elective abdominal surgery.
The evidence is clear here and changes should be rapidly implemented'.


Research and Development

Our research and development efforts in 2007 focused on two key areas: providing
a monitoring solution for the conscious patient and an upgrade of the CardioQ
monitor.

The conscious patient solution has two elements, the SupraQ, a wholly
non-invasive monitor for intermittent spot-checking of cardiac function and the
new I2 range of oesophageal probes.

The second generation SupraQ project continues to make good progress and will
enter the clinical evaluation phase of its development later in 2008, subject to
finalisation of clinical protocols and ethics committee approval at the
investigating hospital.

The I2 probe allows doctors to extend the use of the CardioQ beyond patients who
are under general anaesthetic or deeply sedated to those who are fully awake.
Originally intended for short-term post-operative management of patients waking
up after surgery, the probe has proven so well tolerated that its use has been
extended successfully to fully conscious patients in a variety of clinical
settings, including major surgery under spinal anaesthesia, the accident and
emergency department and on the ward.

In the second quarter of 2008 we will launch the CardioQ-ODM, an upgraded
version of the CardioQ, in the UK and key international markets. We anticipate
submitting a request for approval to sell this new monitor in the USA to the US
Food and Drug Administration (FDA) during the second quarter of this year.

The new lighter-weight CardioQ-ODM upgrades a number of key components and
allows us to take advantage of newer technologies that provide faster processing
capabilities, larger memory capacity, easier and faster data downloading and
better screen resolution. The software interface has been refined to offer
improved ease of use, customisable screen layouts and a series of tools to help
doctors target patient therapy more effectively.

Board membership

In May 2007 Peter Smedvig chose not to stand for reelection to the board of
directors after many years of valuable service to the Company. Today we are able
to announce that Julian Cazalet will be joining the board of directors effective
7 April 2008. Julian recently retired after 34 years at Cazenove, a leading UK
investment bank, where he advised many listed companies and acted in the
flotation of a number of new companies on the London Stock Exchange. Most
recently he was Managing Director - Corporate Finance at JPMorgan Cazenove.

Prospects

Deltex Medical made significant progress during 2007 in all its key markets,
with major milestones in market development achieved in the USA. The momentum
driving sales growth in 2007 has been maintained into 2008 and the first quarter
of 2008 has seen a number of significant events that will enable the Company to
sustain and build upon 2007's progress throughout 2008. Not least of these is
the first reimbursement of doctors for use of the CardioQ in operating theatres
in the United States.

Routine use of the CardioQ represents the translation of evidence-based medicine
into evidence-based practice - the goal of all developed healthcare systems
around the world. The publication of independently conducted analyses of the
overwhelming body of evidence supporting the use of oesophageal Doppler-guided
haemodynamic management can only accelerate the adoption of the CardioQ.

We remain confident in our ability to deliver increasing and sustainable value
for our shareholders as we help more and more hospitals establish use of the
CardioQ as a standard of care for all patients undergoing major surgery or in
intensive care and as we develop new and innovative ways of providing the unique
benefits of Doppler-guided haemodynamic management to all patients who need it,
wherever they may be in the healthcare system.


Nigel Keen
Chairman
7 April 2008



Consolidated Income Statement
for the year ended 31 December 2007

                                  Unaudited  Unaudited    Unaudited    Unaudited
                                     2007         2007         2006         2006
                                    £'000        £'000        £'000        £'000

Revenue                                          4,168                     3,511
Cost of sales                                   (1,250)                  (1,182)
                                                -------                  -------
Gross profit                                     2,918                     2,329
Administrative expenses             2,334                     1,916
Sales and distribution costs        2,525                     2,186
Research and development costs        282                       241
                                   ------       ------        -----      -------
                                                (5,141)                  (4,343)
                                                -------                  -------
Operating loss                                  (2,223)                  (2,014)
Finance income                                      33                         8
Finance costs                                      (21)                     (11)
                                                -------                 --------
Loss before taxation                            (2,211)                  (2,017)
Tax on loss                                         23                        23
                                                -------                 --------
Loss for the year                               (2,188)                  (1,994)
                                                =======                 ========
Loss per share - basic and
diluted                                          (2.5p)                   (2.6p)
                                                =======                 ========



Consolidated statement of recognised income and expense
for the year ended 31 December 2007

                                                      Unaudited        Unaudited
                                                           2007             2006
                                                          £'000            £'000

Exchange differences taken to reserves                        8              (9)
Loss for the year                                        (2,188)         (1,994)
                                                        ---------      ---------
Total recognised expense for the year                    (2,180)        (2,003)
                                                        =========      =========

Consolidated Balance Sheet
at 31 December 2007

                                                         Unaudited     Unaudited
                                                              2007          2006
                                                             £'000         £'000
Assets
Non - current assets
Property, plant and equipment                                   37            47
Trade and other receivables                                     20            52
Intangible assets                                              190            91
                                                              ----          ----
Total non-current assets                                       247           190

Current assets
Inventories                                                    441           383
Trade and other receivables                                  1,570         1,241
Current income tax recoverable                                  47            45
Cash and cash equivalents                                      763           418
                                                             -----         -----
Total current assets                                         2,821         2,087
                                                             -----         -----
Total assets                                                 3,068         2,277
                                                             -----         -----
Liabilities
Current liabilities
Borrowings                                                  (407)          (297)
Trade and other payables                                  (1,204)        (1,160)
Provisions for other liabilities and charges                 (77)           (50)
                                                          -------        -------
Total liabilities                                         (1,688)        (1,507)
                                                          -------        -------
Net assets                                                  1,380            770
                                                          -------        -------

Equity
Share capital                                                925             800
Share premium                                             16,423          14,086
Capital redemption reserve                                17,476          17,476
Other reserves                                             1,342           1,014
Translation reserve                                           (1)            (9)
Retained earnings                                        (34,785)       (32,597)
                                                         --------       --------
Total equity                                                1,380            770
                                                         --------       --------


Consolidated Statement of Cash Flows
for the year ended 31 December 2007

                                                          Unaudited    Unaudited
                                                               2007         2006
                                                              £'000        £'000
                                                              -----        -----
Cash flows from operating activities
Operating loss                                              (2,223)      (2,014)
Depreciation of property, plant & equipment                     38            49
Amortisation of intangibles                                      2             2
Loss on disposal of fixed asset                                (1)             -
Impairment of trade acquisition                                 -             62
                                                             ------       ------
Earnings before interest, tax, depreciation and
amortisation                                               (2,184)       (1,901)
Cost of equity settled share schemes                          328            246
                                                           --------      -------
Operating cash flows before movements in working
capital                                                    (1,856)       (1,655)
Decrease in inventories                                        41             73
Increase in debtors                                          (293)         (307)
(Decrease)/increase in creditors                              (50)           307
Increase in provisions                                         27             16
                                                           -------       -------
Cash used in operations                                    (2,131)       (1,566)
Interest paid                                                 (21)          (11)
Income taxes received                                          23             32
                                                           -------       -------
Net cash used in operating activities                      (2,129)       (1,545)
                                                           -------       -------
Cash flows from investing activities
Purchase of property, plant & equipment                       (29)          (12)
Acquisition of trade                                            -           (62)
Capitalised development expenditure                          (101)          (90)
Interest received                                              28              7
                                                           -------       -------
Net cash used in investing activities                        (102)         (157)
                                                           -------       -------

Cash flows from financing activities
Issue of ordinary share capital                             2,613          1,491
Expenses in connection with share issue                      (151)          (43)
Proceeds from increase in borrowings                          110            78
Repayment of obligations under finance leases                   -            (6)
                                                           -------       -------
Net cash generated from financing activities                2,572          1,520
                                                           -------       -------
Net increase/(decrease) in cash and cash equivalents          341          (182)
Cash and cash equivalents at beginning of the year            418            606
Effect of exchange rate fluctuations on cash held               4            (6)
                                                           -------       -------
Cash and cash equivalents at end of the year                  763            418
                                                          =========    =========


1 Nature of the financial information

The financial statements for Deltex Medical Group plc have yet to be approved
for the year ended 31 December 2007. The financial information set out in this
announcement does not constitute the Company's statutory accounts for the year
ended 31 December 2007 or 31 December 2006. The financial information for the
year ended 31 December 2006 is derived from the statutory accounts for that year
which have been delivered to the Registrar of Companies except for the
restatement of comparatives for the first time adoption of International
Financial Reporting Standards. The auditors reported on those accounts; their
report was unqualified and did not contain a statement under either Section 237
(2) or Section 237 (3) of the Companies Act 1985. The statutory accounts for the
year ended 31 December 2007 are expected to be finalised on the basis of the
financial information presented by the directors in this preliminary
announcement and will be delivered to the Registrar of Companies following the
Company's Annual General meeting.

The preliminary results have been prepared in accordance with applicable
accounting standards under International Financial Reporting Standards (IFRS).
All relevant financial comparatives for the year ended 31 December 2006 have
also been presented on an IFRS basis. The financial information does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985.

The transition to International Financial Reporting Standards and the effect on
the Company's results was previously announced with the 2007 interim results on
27 September 2007.

2 Turnover and segmental analysis

The segment results for the year ended 31 December 2007 are as follows:
                                              
                                                 Unaudited
                        --------------------------------------------------------
                        --------------------------------------------------------
                            UK       USA  International  Unallocated       Total
                         £'000     £'000          £'000        £'000       £'000
                        --------------------------------------------------------
Total segment revenue    2,892       587            947            -       4,426
Inter segment revenue     (258)        -              -            -       (258)
                        --------------------------------------------------------
Group revenue            2,634       587            947            -       4,168
                        --------------------------------------------------------
Segment/operating          379       (52)          (210)      (2,340)    (2,223)
result                  --------------------------------------------------------
Finance income                                                                33
Finance costs                                                               (21)
                                                                        --------
Loss before taxation                                                     (2,211)
Tax on loss                                                                   23
                                                              ------------------
Loss for the financial                                                   (2,188)
year                                                          ------------------


3 Dividends

The directors do not recommend payment of a dividend (2006: nil).

4 Loss per share

Basic loss per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares issued
during the year. The Group had no dilutive potential ordinary shares in either
year, which would serve to increase the loss per ordinary share. Therefore there
is no difference between the loss per ordinary share and the diluted loss per
ordinary share.

The loss per share calculation for 2007 is based on the loss of £2,188,000 and
weighted average number of shares in issue of 87,737,746. For 2006 the loss per
share calculation was based upon the restated loss of £1,994,000 and weighted
average number of shares in issue of 74,181,000.

5 Distribution of announcement

Copies of this announcement are being sent to all shareholders and will be
available for collection free of charge from the Company's registered office at
Terminus Road, Chichester, West Sussex PO19 8TX. Copies of the Report and
Accounts for the year ended 31 December 2007 will be sent to shareholders in due
course.




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