Re: Distribution Agreements

Deltex Medical Group PLC 3 December 2001 Deltex Medical Group plc ('Deltex' / the 'Company') DELTEX CONTINUES INTERNATIONAL SALES EXPANSION WITH NEW DISTRIBUTION AGREEMENTS IN INDIA AND SOUTH AFRICA Chichester, UK 3 December 2001 - Deltex (AIM: DEMG), the UK-based company which develops, assembles and markets a non-invasive device for assessing cardiac function, today announces that it has signed new distribution agreements in India and South Africa for the CardioQ(TM) cardiac monitor and probe, thereby continuing its strong international sales expansion drive. India India represents a large and growing healthcare market, with over one billion inhabitants, representing the second largest population in the world. In 1998, healthcare expenditure was over $22 billion* (6% of India's Gross Domestic Production) and, in 2000, the Indian market for medical equipment and supplies was valued at $990 million*. Deltex has established an exclusive distribution partnership in India with the Consolidated Products Corporation PVT LTD ('Consolidated Products') of New Delhi, India. Consolidated Products was established in 1972 and distributes a range of products including cardiology, cardiovascular, critical care, respiratory, and ophthalmic medical devices. As a company focused on distributing leading-edge medical devices and especially technologies which will improve the health and reduce the costs of patient care, Consolidated Products is well positioned to introduce Deltex's haemodynamic or blood flow technology. It was the first company to introduce the Swan Ganz, pulmonary artery catheter technology in India, providing a strong understanding of the critical care area, the clinical importance of blood flow and contacts with the key physician leaders in this important area of medicine. Consolidated Products distributes its products to all major regions in India, covering both public and the fastest growing private hospital sectors. Consolidated Products has around 65 employees and an annual turnover of over $8 million. South Africa In 1999, South Africa had healthcare expenditures of over $10 billion*, which represented 3.9% of their Gross Domestic Production and the value of the South African market for medical equipment and supplies was $350 million*. Trilogy Critical Care (Pty) Ltd and Aquila Business Systems (Pty) Ltd ('Trilogy and Aquila') of Randburg, South Africa are Deltex's distribution partners in South Africa. Together acting as one company, they sell and service the Deltex products in South Africa. The group consists of experts from the South African medical device industry. Trilogy and Aquila represent a range of products in the anaesthesia, critical care, and cardiology medical device sectors and market products in all major regions of South Africa. They represent what they consider to be leading edge technologies and aim to capture at least 25% share of the market in key product ranges. A special focus of Trilogy and Aquila is on the fast growing private hospital sector. Commenting on these new distributor partnerships, Kemp Coady, Deltex's Chief Executive Officer, said: 'India and South Africa are both fast growing health care markets where we believe the Deltex products will aid greatly in the improvement of overall patient care and in the reduction of health care costs. These partnerships, with the leading operators in their fields, represent an ideal way for Deltex to enter these strategically important markets. 'As demonstrated by our entry into India and South Africa, we continue to strive to have our CardioQ technology accepted by medical practitioners worldwide as the common method for guiding blood flow therapies on a real time, beat to beat basis.' Deltex's products are now being distributed in 15 countries worldwide. *Data from Medistat, Episcom Business Intelligence, Lincoln House, City Fields Business Park, Chichester, West Sussex For further information, please contact: Deltex Medical Group, plc +44 (0) 1243 774837 Kempton Coady, Chief Executive Officer Ewan Phillips, Chief Financial Officer Consolidated Products Corporation, PVT. LTD +91 11 6868 333 Mr. Saigal, President Trilogy Critical Care (Pty) Ltd +27 11 504 90 70 Mr. Wickham, President Financial Dynamics Sarah Mehanna/Andrew Dowler +44 (0)20 7831 3113 Notes to Editors Deltex develops, assembles and markets a non-invasive cardiac function monitor and therapy guidance device, the CardioQ(TM) ('CardioQ(TM)'/'Monitor'). The CardioQ(TM) incorporates the Company's proprietary software and a narrow, easy-to-use, disposable oesophageal probe, used for transmitting and receiving an ultra-sound ('Doppler') signal. By using this Doppler technology, the CardioQ(TM) 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 immediate assessment of their impact. There are already over 600 CardioQ(TM)'s installed in hospitals worldwide - approximately 380 in Europe, Australasian and Africa and 230 in the United States. 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 CardioQ(TM) 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.
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