Re Update on 2003

Deltex Medical Group PLC
14 January 2004

14 January 2004


Deltex Medical Group plc ('Deltex Medical' / 'Company')

Update on progress in the year to 31 December 2003

Chichester, United Kingdom - Deltex Medical (AIM: DEMG) today, in line with its
normal reporting procedures, announces an update on progress in the year ended
31 December 2003.

The Directors anticipate that sales for the year will be in line with market
expectations at approximately £3.1 million, an increase of over 70% against the
prior year. Growth was particularly strong in the UK and Europe, where sales
more than doubled compared to 2002. This increase illustrates the strong growth
in acceptance of the benefits of the monitoring and optimisation of patients'
haemodynamic status. Overall sales of probes grew 46% from 24,000 in 2002 to
35,000 units in 2003.

The Company is pleased to report that, as a result of the increasing momentum
behind the adoption of the CardioQ technology in the UK, the Company has entered
into arrangements with ten hospitals across five NHS Trusts to promote the
wide-scale use of the technology across those Trusts. These Trusts have
purchased the equipment to allow them to treat large proportions or, at two
Trusts, all of their moderate and high risk surgical patients for a period of
three months. In this category of patients the clinical benefits of the use of
the CardioQ are well established. The Trusts have agreed to collaborate closely
with the Company to monitor and assess the impact on the hospitals of the use of
the technology and in return the Company has financed the cost to the Trusts of
the extensive data collection and analysis exercise this entails. The Directors
believe that this data will provide invaluable additional evidence to support
the ongoing marketing programme both within the UK and overseas.

During the period, the Company implemented an Enterprise Management Incentive
Scheme so that its senior managers can be paid bonuses earned in shares rather
than cash. The accounting charge in respect of bonuses awarded under this scheme
of £0.2 million, together with the effect of accruing for the £0.7 million costs
being spent on the NHS Trusts' data collection projects described above, is
expected to result in reported losses being greater than market forecasts.

The Company has broadened its range of probe offerings in its home market with
the launch of a nasally compatible probe for use in critical care and a
paediatric probe for use in children. Both will be used in surgery as well as in
critical care. In December the Company began releasing the first of a series of
probes for use in awake patients to the UK market. The company will provide a
fuller report on the uptake of these new probes in its announcement of
preliminary results for the year to 31 December 2003 which will be released in
April 2004.

The cash position at the end of the year was on target at £1.1 million with
debtors at record levels following particularly strong December sales.

Nigel Keen, Deltex Medical's Chairman, commented:

'The year to 31 December 2003 has been one of significant progress in our key
markets as doctors increasingly recognise the benefits associated with
optimising their patients' haemodynamic status during surgery and in intensive
care. Our strategy of focusing on the UK and European markets over the last two
years has allowed us to more than double sales in these territories compared to
the prior year and to achieve Group sales growth of over 70%.

'The Company's collaboration with a number of UK hospitals, both at the clinical
and management level, clearly demonstrates the enthusiasm for changing current
practice and making haemodynamic optimisation a standard of care. The small
fundraising we completed in October 2003 has allowed us to make the investment
in the data collection exercise with the hospitals which will provide a solid
basis for presenting effective and compelling business cases across the entire
UK National Health Service later in 2004.'



For further information, please contact:-

Enquiries

Deltex Medical Group plc

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


Notes for Editors

Deltex Medical primarily develops, assembles and markets a cardiac function
monitor and therapy guidance device, the CardioQ ('CardioQ'/'Monitor'). 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 haemodynamically optimise
critically ill patients and those undergoing routine moderate to major surgery
through the controlled administration of fluid and drugs. Haemodynamic
optimisation has been scientifically proven to improve the speed and quality of
patient recovery and reduce hospital stay.

There are already over 1,000 CardioQs 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
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 by an average of 30 to 40 per cent for a wide range
    of patients.


                      This information is provided by RNS
            The company news service from the London Stock Exchange