Re Distribution Agreement

Deltex Medical Group PLC 10 April 2002 10 April 2002 Deltex Medical Group plc ('Deltex Medical'/'Group'/'Company') DELTEX MEDICAL TO SELL THE CARDIOQ DIRECT IN THE UK Chichester, UK - Deltex Medical (AIM LSE: DEMG), the AIM listed haemodynamic monitoring company, announces that it will sell and market its products directly in the UK from 1 July 2002 to coincide with the UK launch of its new multi-use operating theatre probe. After three consecutive years of strong growth, the UK is Deltex Medical's largest market. Deltex Medical has agreed with its current distributor, Actamed Limited (' Actamed'), to terminate the existing distribution agreement seven months early on 30 June 2002. In return for the early termination, Deltex Medical will pay commission on all sales of CardioQOs and single-use probes in England, Scotland and Wales until the original expiry date of 31 January 2003. The Group has also agreed to issue a total of 120,000 options over its ordinary shares to five Actamed managers who have contributed to Deltex Medical's success in the UK since Actamed was appointed in 1999. These options are exercisable at a price of 25p per share at any time between 1 July 2004 and 30 June 2007. In addition, Adrian Turner, Actamed's Managing Director, will be retained on a consultancy basis for twelve months from 1 July 2002. Nigel Keen, Deltex Medical's Chairman, commented: 'Actamed has achieved considerable success in expanding sales of the CardioQO and single-use probes in the UK and establishing a strong installed base for future expansion. However, Deltex Medical has reached a stage in its development when it is essential that it is in very close contact with the medical community and the users of its products in its home market. This is particularly important given that the Group's strategy is to develop, refine and prove its sales and marketing approach in the UK before rolling it out through its network of distribution partners in other countries. We are very excited about the prospects for the launch of the operating theatre probe.' Adrian Turner, Actamed's Managing Director, commented: 'Our relationship with Deltex Medical has been extremely positive and we have always worked well together to support our customers. We fully understand Deltex Medical's wish to devote more attention to this rapidly growing market and have agreed to support them throughout this transition period, not least in my capacity as a consultant to the Group.' For further information, please contact: Deltex Medical Group plc +44 (0) 1243 774837 Nigel Keen, Chairman and Chief Executive Ewan Phillips, Chief Financial Officer Financial Dynamics +44 (0)20 7831 3113 Stephanie Highett/Sarah Mehanna Notes to Editors Deltex primarily develops, assembles and markets a cardiac function monitor and therapy guidance device, the CardioQTM ('CardioQTM'/'Monitor'). The CardioQTM incorporates the Company's proprietary software and a narrow, easy-to-use, minimally invasive, disposable oesophageal probe, used for transmitting and receiving an ultra-sound ('Doppler') signal. By using this Doppler technology, the CardioQTM provides clinicians with an early warning on the haemodynamic condition of critically ill patients. This continuous, real-time monitoring facilitates the administration of fluids or drugs in a timely fashion and provides an provides an immediate assessment of their impact. There are already over 600 CardioQTMs currently in use in hospitals worldwide and distribution arrangements are in place in over 30 countries. In addition, there are currently more than 75 clinical publications on the use of the CardioQ TM which have repeatedly:- • validated the results of the Monitor against known standards for measuring cardiac output, demonstrating that the technology works • proved that the CardioQTM works over a variety of types of operation • shown that the Company's technology provides significant health and economic benefits by helping to reduce post-operative complications and length of hospital stays by an average of 30 to 40 per cent for a wide range of patients. The Company is also currently developing a number of new products:- • A multi-patient probe for use in specific circumstances in certain markets • The SupraQTM - a monitor based on the CardioQTM technology but using a completely non-invasive probe; the prototype is being prepared for clinical testing in the second half of 2002 • The NeuroQTM - a monitor designed to measure blood flow in the brain; the new prototype is in preparation for clinical trials in the second half of 2002. The multi-patient probe for use in operating theatres in the UK will be launched in July 2002. This information is provided by RNS The company news service from the London Stock Exchange
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