Interim Results

Aortech International PLC
09 December 2005


For Immediate Release                                            9 December 2005



                            AorTech International plc
                           'AorTech' or 'the Company')

           Interim Results for the six months ended 30 September 2005


AorTech International plc, the biomaterials Intellectual Property and Material
Manufacturing Company is pleased to announce its Interim Results for the six
months ended 30 September 2005.


Operational Highlights


  • First FDA and European approval achieved for an implantable life
    sustaining device utilizing Elast-EonTM
  • Significant milestone payment triggered
  • Near-term royalty stream anticipated



Financial Highlights


  • Turnover of £63,517 (2004: £38,101)
  • Loss before taxation of £929,566 (2004: £838,262)
  • Net cash of £3,060,660 (2004: £5,030,227)


Commenting on the progress of the Company, Jon Pither, Chairman, said:



'The Group has taken a major step forward with its material licensing business
by achieving FDA approval through a device partner. This licence is expected to
move the Group into its royalty bearing phase in the first quarter of 2006.  We
believe that this is the first of numerous applications that the Elast-EonTM
family of polymers will see over the next few years and that the prospects for
the material licencing and supply segment of our business are bright.



Our progress with the development of a more reliable next generation breast
implant device for surgeons and patients continues to exceed our expectations.
The interest we are currently receiving from industry participants provides us
with the optimism that a specific programme for the development of this
technology as part of a strategic relationship will be defined in the
foreseeable future.'



The Group's Interim Report is expected to be sent to shareholders on or around
16 December 2005.  Copies will be available free of charge from the Group's
Surbiton office (address below) for a period of one month from 16 December 2005.



For further information please contact:


AorTech International plc
Frank Maguire, Chief Executive                                 00 1 801 201 4336

Buchanan Communications                                            020 7466 5000
Ben Willey, Lisa Baderoon, Rebecca Skye Dietrich



Visit AorTech's website at: www.aortech.com

AorTech International plc:

Prestige Travel Suite, Barclays Bank House, 81-83 Victoria Road, Surbiton,
Surrey, KT6 4NS, UK



CHAIRMAN'S STATEMENT


Licensing progress

On 25 November 2005, the Company announced the achievement by one of its
licencees of FDA approval for the first long term implantable, life sustaining
device incorporating Elast-EonTM technology.



This was an important milestone for the Group, not only in financial terms but
perhaps more importantly as validation of the suitability of our polymer
technology for these types of critical applications. It is an indication of
success that the Group has achieved

     -   technically - by generating superior results when tested against
         other commercially available medical polymers;

     -   operationally - by achieving ISO credentials and performing
         consistently well in customer audits of our manufacturing facility, and

     -   commercially - by negotiating and closing substantive licensing and
         supply contracts with medical device partners.



AorTech will continue to defer to its clients' need for confidentiality of the
terms, applications and identification of these clients in existing and future
licences.



Results

For the six months ended 30 September 2005, the Group had a turnover of £63,517,
net operating expenses of £1,045,861 and a loss before taxation of £929,566.
Although turnover increased by 66% over the corresponding period for 2004,
development expenditure increased by £109,566 and the loss before taxation was
£91,304 greater than in the first half-year of 2004.  The cash position at
£3,060,660 compares with £5,030,227 at 30 September 2004.  The Board believes
that the Group is entering the commercial phase which it anticipates will result
in a reduction in the cash burn during the remainder of the current financial
year.  The Group's Australian operation will be moving to new premises during
2006, which will provide an 18% increase in space with a 10% reduction in lease
expense, and client-funded manufacturing expansion is expected to result in an
approximately 65% reduction in unit costs of production.



Breast Implant

The Company believes that the recent mergers and acquisition activity in the
plastic surgery market, along with the anticipated FDA approval of the
gel-filled breast implant in the United States, together have created a market
that is  receptive to the first new technology in more than two decades.



AorTech's proprietary polymer, Elast-EonTM, is ideally suited for this purpose.
Progress has been made with the development of a prototype 'generation 5' breast
implant device.



Existing silicone breast implants are prone to shell failures related to stress
fatigue and utilise a gel filler material which requires the use of metal
catalysts.  These silicone gels are characterised by substantial levels of
leaching of low molecular weight material which is commonly known as silicone '
gel bleed'.  The AorTech implant under development should offer product
reliability advantages through a more robust shell and an Elast-EonTM gel which
is free from metal catalysts and has a greater than 50% reduction in these low
molecular weight materials.



New intellectual property has been filed, scientific papers will shortly be
published in the American Society of Plastic and Aesthetic Surgery publication
Aesthetic Surgery Journal and the Company continues talks with potential
industry partners regarding licensing and co-development options.



Board Changes

I am particularly pleased to announce that the Board has been strengthened by
the recent appointment of Eddie McDaid and Gordon Wright as Non-Executive
Directors, and I welcome the informed contribution that they will make to the
Company's continuing development.



Summary

The Group has taken a major step forward with its material licensing business by
achieving FDA approval through a device partner. This licence is expected to
move the Group into its royalty bearing phase in the first quarter  of calendar
year 2006.  We believe that this is the first of  several applications that the
Elast-EonTM family of polymers should achieve over the next few years and we are
confident that the prospects for the material licensing and supply segment of
our business are bright.



Our technical progress with the development of a safer breast implant device for
surgeons and patients continues to exceed our expectations. The interest we are
currently receiving from a number of industry participants provides us with the
optimism that a long term programme for the development of this technology will
be defined in the foreseeable future.



Jon Pither
Chairman
9 December 2005



AORTECH INTERNATIONAL PLC


CONSOLIDATED PROFIT AND LOSS ACCOUNT (unaudited)

                                                   six months       six months           year 
                                                     ended 30         ended 30          ended
                                               september 2005        september       31 march
                                                                          2004           2005                           
                                     Note                   £                £              £
Turnover                                               63,517           38,101        136,958

Cost of sales                                        (28,675)          (8,929)       (31,339)

Gross profit                                           34,842           29,172        105,619
Net operating expenses                            (1,045,861)        (976,958)    (2,189,908)
     Net operating expenses include:
     Development expenditure                        (396,986)        (287,420)      (653,896)
     Amortisation of intangible fixed                
     assets                                          (49,697)         (46,427)       (94,589)

Group operating loss                              (1,011,019)        (947,786)    (2,084,289)

Loss on ordinary activities before                
interest                                          (1,011,019)        (947,786)    (2,084,289)
Interest receivable                                    81,453          109,524        216,899

Loss on ordinary activities before                  
taxation                                            (929,566)        (838,262)    (1,867,390)
Taxation                                                    -                -              -

Loss for the financial period                       (929,566)        (838,262)    (1,867,390)

Loss per ordinary share                 3            (24.40p)         (22.00p)       (49.01p)

All of the turnover and operating losses are derived from continuing
operations


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

Loss for the financial period                       (929,566)        (838,262)    (1,867,390)
Currency translation differences arising on          
consolidation                                         105,538         (66,209)       (45,215)

Total recognised losses                             (824,028)        (904,471)    (1,912,605)











CONSOLIDATED BALANCE SHEET (unaudited)
                                            30 september 2005    30 september 2004        31 march 2005
                                                            £                    £                    £
Fixed assets
Intangible assets                                   1,480,441            1,474,060            1,449,366
Tangible assets                                       205,631              206,722              189,678
                                                    1,686,072            1,680,782            1,639,044

Current assets
Stocks                                                115,791               50,744               68,852
Debtors                                               289,311              296,492              278,948
Cash at bank                                        3,060,660            5,030,227            4,015,126
                                                    3,465,762            5,377,463            4,362,926

Creditors: amounts falling due within               
one year                                            (322,352)            (396,601)            (348,460)

Net current assets                                  3,143,410            4,980,862            4,014,466
Net assets                                          4,829,482            6,661,644            5,653,510

Capital and reserves
Called up share capital                             9,525,695            9,525,695            9,525,695
Share premium account                                       -           63,359,594                    -
Other reserve                                     (2,003,143)          (2,003,143)          (2,003,143)
Profit & Loss account                             (2,693,070)         (64,220,502)          (1,869,042)
Equity shareholders' funds                          4,829,482            6,661,644            5,653,510








CONSOLIDATED CASH FLOW STATEMENT
(unaudited)
                                    Note              six months                      six          year ended
                                                           ended             months ended            31 march
                                                    30 september             30 september                2005
                                                            2005                     2004             
                                                               £                        £                   £
Net cash outflow from operating                      
activities                                           (1,015,153)              (1,029,725)         (2,139,103)

Returns on investment and                                 
servicing of finance                                      81,453                  109,524             216,899

Taxation                                                       -                        -                   -

Capital expenditure and financial                       
investment                                              (35,590)                 (11,374)            (28,000)

Cash outflow before management of                      
liquid resources and financing                         (969,290)                (931,575)         (1,950,204)

Management of liquid resources                           938,938                  924,297           1,994,364

Increase / (decrease) in cash in      
the period                            4                 (30,352)                  (7,278)              44,160







NOTES TO THE INTERIM FINANCIAL STATEMENTS (unaudited)


FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005

1.  BASIS OF PREPARATION
The interim financial statements have been prepared in accordance with the guidance published
by the Accounting Standards Board and on the basis of the accounting policies set out in the
Group's 2005 statutory accounts.


The interim financial statements were approved by a duly appointed and authorised committee
of the Board of Directors on 2 December 2005 and are unaudited.


The information shown for the year ended 31 March 2005 does not constitute statutory accounts
within the meaning of section 240 of the Companies Act 1985 and has been extracted from the
full accounts for the year ended 31 March 2005 which have been filed with the Registrar of
Companies.  The report of the auditors on those accounts was unqualified and did not contain
a statement under either section 237(2) or section 237(3) of the Companies Act 1985.


2.  SEGMENTAL ANALYSIS BY CLASS OF BUSINESS AND GEOGRAPHICAL AREA

(a) class of business   The Group operates in one class of business, being the development
                        and exploitation of a range of innovative biomaterials.

(b) geographical area   The analysis by geographical area of the Group's
                        turnover, loss
                        before tax and net assets is set out below:


                          six months ended          six months ended               year ended
                         30 september 2005         30 september 2004            31 march 2005
                           sales by  sales     sales by     sales by    sales by     sales by
                        destination     by  destination       origin destination       origin
                                    origin
(i) turnover                      £      £            £            £           £            £
Geographical segment
United Kingdom               23,073      -            -            -      13,024            -
Rest of Europe                8,079      -            -            -           -            -
Rest of World                32,365 63,517       38,101       38,101     123,934      136,958
                             63,517 63,517       38,101       38,101     136,958      136,958

(ii) Loss before                                          six months  six months   year ended
taxation                                                       ended       ended
                                                        30 september          30     31 march
                                                                       september
                                                                2005        2004         2005
                                                                   £           £            £
Geographical segment
United Kingdom                                             (382,150)   (391,298)    (957,192)
Rest of Europe                                                     -           -            -
Rest of World                                              (628,869)   (556,488)  (1,127,097)
Loss before interest                                     (1,011,019)   (947,786)  (2,084,289)
Net interest receivable                                       81,453     109,524      216,899
Loss before taxation                                       (929,566)   (838,262)  (1,867,390)


                                                        30 september          30     31 march
                                                                       september
                                                                2005        2004         2005
(iii) net assets                                                   £           £            £
Geographical segment
United Kingdom                                             2,856,656   4,772,111    3,733,878
Rest of Europe                                                     -           -            -
Rest of World                                              1,972,826   1,889,533    1,919,632
                                                           4,829,482   6,661,644    5,653,510


3.  LOSS PER ORDINARY SHARE

The basic loss per ordinary share is calculated on the loss of the Group of £929,566 for the
six months to 30 September 2005 (six months ended 30 September 2004: loss of £838,262, year
ended 31 March 2005: loss of £1,867,390) and on 3,810,278 (six months ended 30 September
2004: 3,810,278, year ended 31 March 2005: 3,810,278) equity shares.

                                                                        exchange 30 september
4.  ANALYSIS OF NET FUNDS                  1 april 2005   cash flow  differences         2005
                                                                     

                                                      £            £           £            £
                                                                                            
Net cash:
Cash at bank and in                           
hand                                          4,015,126    (969,290)      14,824    3,060,660
Deposits treated as liquid                  
resources                                   (3,709,470)      938,938           -  (2,770,532)
                                                305,656     (30,352)      14,824      290,128
Liquid resources:
Deposits included in                          
cash                                          3,709,470    (938,938)           -    2,770,532
Net funds                                     4,015,126    (969,290)      14,824    3,060,660












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