Trading Statement

Deltex Medical Group PLC 25 July 2006 Deltex Medical Group plc Pre-close update on the six months ended 30 June 2006 25 July 2006 Deltex Medical Group plc ('Deltex Medical' or the 'Company'), the AIM listed haemodynamic monitoring company, today announces an update on progress in the six months ended 30 June 2006. During the first half of 2006 the Company made significant further progress towards its goal of establishing the use of its CardioQTM system as a standard of care in the monitoring and management of patients undergoing major surgery and in intensive care. As a result, sales for the period were in excess of £1.5 million, compared to £1.4 million in the corresponding period in 2005. In the Company's largest market, the UK, sales continued to grow steadily, with growth in each of probe sales, monitor sales and maintenance revenue. June was the twentieth consecutive month when UK probe sales were higher than in the corresponding month the year before. March was a record month for probe sales and June the second highest ever. The heightened level of interest in the CardioQ in the USA is yet to have a significant impact on sales, however revenues were ahead of the corresponding period as a result of early signs of increases in probe volumes from several of the key accounts which the Company's small US sales team is actively supporting. In 2005 the Company restructured its commercial relationships with its distributors in the Far East and Latin America and sales in the first half of the year have also shown continued progress. The Company has embarked on a similar process with its main distributor partners in Europe. As a result all the Company's major distributors have moved on to schedules of regular monthly orders for probes rather than occasional stocking orders. This gives the Company greater visibility of future orders, which assists improvements in production and stock control. It has involved the Company supporting stock reduction programmes by a number of its distributors leading to sales in Europe being lower than in the first half of 2005. Cash consumption has been in line with the Company's plans and the Directors believe that the Company has sufficient cash resources to achieve profitability. Nigel Keen, Deltex Medical's Chairman, commented: 'The progress we have made in each of the UK, US and Far East and Latin American markets together with the changes we have implemented in Europe mean that we go into the second half of the year with increasing momentum in all of our areas of activity.' For further information, please contact:- Deltex Medical Group plc 01243 774 837 Nigel Keen, Chairman nigel.keen@deltexmedical.com Andy Hill, Chief Executive andy.hill@deltexmedical.com Ewan Phillips, Finance Director ewan.phillips@deltexmedical.com Financial Dynamics David Yates david.Yates@fd.com 0207 831 3113 John Gilbert john.gilbert@fd.com 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 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 1,250 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 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
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