New Distribution Contract

Surgical Innovations Group PLC
14 January 2002

14 January 2002



SURGICAL INNOVATIONS SIGNS £2.5m DISTRIBUTION CONTRACT



Surgical Innovations Group plc ('Surgical'), the designer and manufacturer of
medical devices, is delighted to announce that it has today signed a major
distribution contract with Aesculap Inc, worth an estimated £2.5m over three
years.



Aesculap Inc, an American company established in 1977 is a division of
Aesculap AG & Co KG of Tuttlingen, Germany, the world's largest supplier of
finely crafted surgical instruments.



The contract is for the distribution of Surgical's new range of single use
scissors, which greatly reduce the risk of infection during surgical
procedures.



The scissors are part of Surgical's Logic(TM) instrument range, which also
features the patented F4 re-usable handle. The product line will be marketed
in the US through Aesculap's Surgical Business Unit under the brand name
Sovereign(TM).



Commenting on the deal, Stuart Moran, technical director said:



'This contract marks a significant step in Surgical's development. As we have
previously indicated in our annual report and interim statement, we have
increased our focus on the development of single use devices. I believe that
this contract confirms that decision and provides a firm base for future
growth.'



Enquiries:


Surgical Innovations Group
Graham Bowland, Finance Director              Tel: [phone]
Stuart S Moran, Technical Director

Binns & Co PR Ltd                             Tel: [phone]
Keeley Middleton/Sophie Morton







Background Notes:



Aesculap Inc



Aesculap Inc, an American company established in 1977 is a division of
Aesculap AG & Co KG of Tuttlingen, Germany, the world's largest supplier of
finely crafted surgical instruments.



Aesculap AG, a member of the B.Braun family of companies, offers a complete
line of 17,000 instrument patterns for nearly every surgical application.



B.Braun is one of the world's largest suppliers of superior medical products
and value added services for hospitals and non-clinical areas.



B.Braun Medical offers a full line of IV accessories and critical care
products and is a world leader in the manufacture of epidural anaesthesia.



Surgical Innovations

Reuters Code: SUN.L

Market: AIM - Medical equipment and supplies.



Surgical Innovations Group plc was formed in 1998 by the merger of Haemocell
plc and Surgical Innovations Ltd. Surgical designs and manufactures medical
devices which are sold through its international network of distributors,
licensees and OEM customers.



The Group is divided into 4 key business and product areas: Minimally Invasive
Surgery products, Autologous Blood Transfusion products, ION Products
solutions and Product Licensing.



Minimally Invasive Surgery (MIS): Surgical Innovations has been at the
forefront of MIS working closely with clinicians in both training and product
development.

Autologous Blood Transfusion: Surgical Innovations' blood collection systems
simplify the process of providing blood for both intra- and post-operative
treatment and care.

ION: Surgical Innovation's ion division focuses on the provision of design and
manufacturing solutions both internally and to other healthcare companies.

Licensing: Surgical Innovations' key royalty income derives from licensing its
Endoflex product to Snowden Pencer in the US. Further licensing opportunities
are expected to arise as its portfolio of Intellectual Property Rights
increases.





Directors:

Douglas Liversidge CBE - Non-Executive Chairman

Graham Bowland - Finance Director

Stuart Moran - Technical Director

Colin Glass  - Non-Executive Director

Raymond Simkins - Non-Executive Director