Placing & Trading Update

Aortech International PLC
24 July 2007



24 July 2007

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

                           Placing and trading update

AorTech International (AIM:AOR), the biomaterials and medical device development
company, is pleased to announce an update in relation to developments in the
Company and a Placing of 1,000,000 new Ordinary Shares, at a price of 510p per
share, to raise £5.1 million (before expenses). Furthermore a circular,
containing a notice of Extraordinary General Meeting, has today been sent to
shareholders.

Recent developments of the Company

The Company continues to achieve key operational milestones on the use of its
core product, being the Elast-Eon(TM) polymer. These include the development and
refinement of this material for the medical community, with the aim of providing
a wide range of high performance Elast-Eon(TM) materials in a variety of
application-specific formulations and densities, for use in medical devices. The
Company however remains at present principally focused on the use of Elast-Eon(TM)
in breast implants and new cardiovascular and orthopaedic applications alongside
existing licensing and supply agreements.

The Directors continue to pursue a number of opportunities with the breast
implant product, following the FDA re-approval of the silicone gel-filled
implant in the US. Specifically the Company is exploiting the previous
experience and contacts of Frank Maguire, Chief Executive Officer of the
Company, and the Directors believe the market is becoming increasingly receptive
to a next generation breast implant product.

In relation to one of its device development applications, the Directors are
pleased to announce today a licensing and supply agreement for the evaluation of
Elast-Eon(TM) by a global medical device company.  The agreement includes an
option for the licensee to acquire certain of AorTech's intellectual property
rights.  Under the terms of the agreement, the Company will receive an up-front
license fee payment intended to compensate the Company for initial costs related
to the agreement.  Contingent upon a number of key conditions being satisfied,
the Company will also be eligible to receive subsequent milestone payments which
could total up to approximately $32 million plus potential material supplies
revenue and  royalties. In the short-term, this agreement is not expected to
have a material impact on the Company's financial position.  The signing of this
agreement, together with interest in further partnerships and the Placing (as
explained below) give the Directors confidence in the prospects of the Company.

The Placing

The Company has today raised £5.1 million, before expenses, through the Placing
of 1,000,000 new Ordinary Shares, at a price of 510p per share. The Company
intends to use the proceeds of the Placing as follows:

  * to expand the manufacturing capability of its Melbourne facility in order
    to enhance manufacturing margins by bringing Elast-EonTM raw material
    manufacture in-house;
  * to fund additional component manufacture to supplement the Company's
    existing technology in breast implants and cardiovascular and orthopaedic
    applications and devices;
  * to fund the hire of further employees for the sales and marketing
    department and a full time Finance Director; and
  * to provide working capital for the Company.

The Placing is conditional, inter alia, the passing of the Resolutions at the
Extraordinary General Meeting and Admission. Application will be made to the
London Stock Exchange for the Placing Shares to be admitted to trading on AIM.
It is expected that admission in respect of those Placing Shares will become
effective and dealings in the Placing Shares as issued will commence on 21
August 2007.

Related party transaction

Owing to the size of its shareholding in the Company, Bluehone Investors LLP,
who hold approximately 24.82 per cent. of the Company's current issued share
capital, is a related party of the Company for the purposes of the AIM Rules.

As part of the Placing, Bluehone Investors LLP has agreed to subscribe for
50,000 Placing Shares representing 5.0 per cent. of the Placing. The Directors
(with the exception Dr. Stuart Rollason who is a director of Bluehone Investors
LLP) consider, having consulted with the Company's Nominated Adviser, Evolution
Securities, that the subscription by Bluehone Investors LLP is fair and
reasonable so far as the Company's shareholders are concerned. Following
Admission, Bluehone Investors LLP will have a beneficial interest in 995,810
Ordinary Shares respectively, representing 20.7 per cent. of the Enlarged Issued
Share Capital.

Extraordinary General Meeting

The Company has today sent to shareholders a circular convening an EGM to be
held at 12 noon on 20 August 2007 at The Hogarth Partnership, 2nd Floor
Upstream, No 1 London Bridge, London SE1 9BG for the purposes of implementing
the Placing.

The Directors consider the Placing to be in the best interests of the Company
and its Shareholders as a whole and, accordingly, unanimously recommend that
shareholders vote in favour of the Resolutions to be proposed at the EGM as they
so intend in respect of their beneficial holdings amounting, in aggregate, to
699,690 Ordinary Shares, representing approximately 18.36 per cent. of the
existing issued share capital of the Company.

                                    - Ends -

For further information please contact:

AorTech International plc                      Tel: + 1 801 201 4336
Frank Maguire, Chief Executive

Evolution Securities                           Tel: [phone]
Bobbie Hilliam
Tim Worlledge

Hogarth Partnership Limited                    Tel: [phone]
Melanie Toyne-Sewell
Sarah Richardson

Unless the context otherwise requires, defined terms used in this announcement
shall have the meanings given to them in the circular dated 24 July 2007.

Notes to Editors:

About AorTech International plc

Listed on AIM in London, AorTech International plc wholly owns AorTech
Biomaterials based in Melbourne, Australia. AorTech Biomaterials was formed in
July 1997 to commercialise a range of medical grade polyurethanes for medical
implants developed by the Commonwealth Scientific and Industrial Research
Organisation (CSIRO).

AorTech's Elast-Eon technology is the product of a decade of fundamental
research into biologically stable materials. Elast-Eon materials are patented,
high silicone content, polyurethane copolymers which exhibit unparalleled
biological and mechanical performance.

AorTech is firmly focused on the development and refinement of this material for
the medical community, with the aim of providing a wide range of high
performance Elast-Eon materials in a variety of application specific
formulations and densities, for use in medical devices.



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