Final Results

Surgical Innovations Group PLC
28 March 2001


               SURGICAL INNOVATIONS GROUP PLC
                              
   Preliminary Results for the year ended 31 December 2000
                              
Surgical  Innovations Group plc, the AIM listed provider  of
healthcare products primarily for the operating theatre, has
announced  its  preliminary results for the  year  ended  31
December 2000.

Highlights

 -  Loss for the year reduced to £57,000 (1999: £694,000)

 -  Turnover has increased to £1.8m (1999: £1.3m)

 -  Increased royalties from Genzyme to  £342,000  (1999:
    £213,000)

 -  Conversion of £1,875,206 Loan Notes into equity by loan
    note holders resulting in a significantly improved net asset
    position in both Group and Company Balance sheet.

 -  Strategic  review  refocusing the group  in  four  key
    areas:

     - Licensing of Products

     - Minimally Invasive Surgery

     - Autologous Blood Transfusion

     - Ion Product Solutions

Commenting  on  the  results, Douglas  Liversidge,  Chairman
said,  '  Our  intention for the year under  review  was  to
achieve  break-even by the close of trading.  This has  been
achieved,  not without difficulty, and we are now conserving
our cash resources.  However, we recognise that this is only
the  starting point in our commitment to create and increase
shareholder value.  We believe this increase in value cannot
be  achieved by organic growth alone, and therefore,  as  we
gain  increasing confidence from our trading performance  we
are   looking   at  potential  acquisitions  and   strategic
relationships.   Although  these  are  early  days,  we  are
exploring a number of interesting situations, which we  hope
will bear fruit in the not too distant future.'

For further information:
Surgical Innovations Group plc        Citigate Dewe Rogerson
Graham Bowland - Finance Director             Grace Marriner
Stuart Moran - Technical Director        Tel:  [phone]
Tel: [phone]


               SURGICAL INNOVATIONS GROUP PLC

                    CHAIRMAN'S STATEMENT

                 Year ended 31 December 2000



I  am  pleased  to report a continuing improvement  in  your
Group's performance.

For  the  full  year turnover has increased to £1.8m  (1999:
£1.3m)   whilst  the  loss  before  taxation   has   reduced
significantly  to £57,000 (1999: £694,000).   Significantly,
the  Group returned to profit during the second half of  the
year.

The  results  include increased royalties from Genzyme,  who
have world-wide distribution rights on our EndoFlex product,
to  £342,000 (1999: £213,000) and the final payment  of  the
licence fee £129,000 (1999: £124,000).

During the first half of the year consent was received  from
holders  of  more than 75% of the Company's 6.5% Convertible
Unsecured  Loan  Notes 2005 to extend the conversion  period
applicable to the Loan Notes to enable immediate conversion.
As  a  consequence, holders took the opportunity to  convert
£1,875,206  of Loan Notes into equity, leaving a balance  of
111,573.   This had the beneficial effect of  significantly
improving the net asset position in the Balance Sheet.

Also  during  the year Getz Bros, our strategic shareholder,
expressed  the desire to reduce their holding to  below  the
20%.   I  am pleased to report that we managed to place  the
majority of the shares for disposal with a broker for onward
placement  with his private clients, with the  remainder  of
the  shares  being sold in the market.  Getz Bros  now  hold
approximately  19.4% of the equity and have  indicated  that
they have no intention of disposing of further shares.

In  my Chairman's Statement accompanying the Interim Results
I  explained the progress that was being made following  the
Strategic  Review of the Group's activities  that  had  been
carried out early in the financial period.

This Review was required to establish a way forward for  the
Group  which  would  provide stability and  a  platform  for
growth.  I now believe that the Group is stronger and better
equipped to meet the needs of an ever more sophisticated and
demanding global healthcare market.

In summary, the Strategic Review has refocused the direction
of  the  Group.  We  have established a  UK  distributor  to
promote   our   products,  moved  away  from   third   party
distribution, disengaged our direct sales force and  created
a structure to facilitate growth in four key areas, namely:

    Licensing of Products.

    Minimally Invasive Surgery (MIS).
    Autologous Blood Transfusion (ABT).
    ion Product Solutions: design, development and
     manufacture of products for OEMs.


Licensing of Products

The  royalty income from Genzyme, predominantly through  the
sales  in  the US, continues to increase.  Although  Genzyme
Products  Division, which holds the license for the EndoFlex
products,  is  to be sold we see no reason why  our  royalty
income   should  not  continue  to  bring   in   a   healthy
contribution.

As  we  develop new, highly innovative products, we  believe
there  will be further licensing opportunities and  to  this
end  our  policy  is  to  establish a  portfolio  of  strong
intellectual property rights.

Minimally Invasive Surgery Products

This  year  has seen significant progress in developing  our
international  distributor network, which  is  now  actively
promoting the currently available products and is poised  to
take our new products to market.

Currently  we  have  appointed new  distributors  in  Japan,
Italy,  Switzerland,  the  Gulf  States,  Egypt,  and   most
recently the US.

  In addition the YelloPort port access system - this is the
device  used to make the keyhole' in the abdominal  wall  -
has  been  significantly enhanced with  the  addition  of  a
shielded trocar.  I am confident that this will boost global
sales in the coming year.

Surgical  Innovations  is  renowned  for  its  high  quality
reusable instruments.  However, the philosophy of the  Group
is  to  continue  adapting to market  trends  and  surgeons'
requirements.  In order to achieve successful organic growth
and  significant international market share, the Group  must
increase  its  range  of  products containing  a  disposable
element  and,  therefore, I am pleased to announce  that  an
extensive  single-use  instrument development  programme  is
well under way.

Significant  time and resources have been dedicated  to  the
branding  for our laparoscopic instrument range.  The  Logic
brand will encompass some of our existing product lines  and
will be the marketing vehicle for several new developments.

Autologous Blood Transfusion Products

The  production problems encountered since our  merger  with
Haemocell  have  been  largely solved due  to  a  tremendous
effort  by our staff and manufacturing partners.   This  has
coincided  with  an increase in customer interest,  both  at
home   and  abroad,  in  the  post-operative'  and  intra-
operative'  systems.  I believe that growing public  concern
in   the   spread  of  HIV  and  new  variant  CJD   through
contaminated blood is leading to an increasing awareness  of
the  advantages of ABT procedures.  Also, the  economics  in
relation  to the cost of blood transfusion as compared  with
the  recirculation of the patient's own blood  seems  to  be
gradually moving in our favour.

We  are  spending time and effort in direct market  research
using  a dedicated member of staff and we intend to increase
our technical support as appropriate. In the longer term, we
are in the process of developing a next generation' product
as part of a pan-European collaborative project.

We   currently  sell  to  hospitals  in  the  UK  and   have
particularly  strong distribution in Italy  and  the  Middle
East and we are exploring a number of opportunities in other
international markets.

ion Product Solutions

This  division, under the expert guidance of  our  Technical
Director  Stuart  Moran  with his  talented  young  team  of
designers,  was formed to focus on the provision  of  design
and  manufacturing solutions both internally  and  to  other
healthcare companies.  In particular, our relationship  with
Genzyme  France  has gone from strength to strength  and  we
have  already  shipped initial orders of  the  Genport  port
access  system  and the Sepra Applicator, a device  for  the
laparoscopic deployment of Genzyme's anti-adhesion  barrier,
Seprafilm.  The addition of a shielded trocar to the product
range   significantly  increased  sales  and   profitability
resulting  from orders in excess of £300,000.  ion exhibited
for  the  first  time under its own branding at  the  Medica
Congress  in  Dsseldorf  and this generated  a  significant
number of interesting business opportunities.

Relationships  with  other  medical  companies   are   being
developed  as  a  result  of  our  creative  and  innovative
approach  and  through the recognition  of  our  design  and
development  abilities  and  our  commitment  to  speed  to
market'.

Currently, resources are limited and we have decided to give
priority to our in-house development projects.  We recognise
the need to build our resources in this area and are looking
at   developing  key  strategic  relationships  with  larger
companies who are anxious to acquire our skills.

The  achievements  at  both trading and product  development
level  are  as a result of the magnificent effort of  Stuart
Moran  and Graham Bowland and their dedicated team.   Stuart
and  Graham  have been acting effectively as joint  managing
directors with joint responsibility for sales and marketing,
as well as dealing with their own specific responsibilities.
Colin  Glass  and I, although in non-executive  roles,  have
endeavoured  to spend such time as is required or  requested
to provide the necessary support to their efforts.

Our intention for the year under review was to achieve break-
even  by  the close of trading. This has been achieved,  not
without  difficulty,  and  we are now  conserving  our  cash
resources.   However, we recognise that  this  is  only  the
starting  point  in  our commitment to create  and  increase
shareholder value.  We believe this increase in value cannot
be  achieved by organic growth alone, and therefore,  as  we
gain  increasing confidence from our trading performance  we
are  looking at potential acquisitions and forming strategic
corporate relationships.  Although these are early days,  we
are  exploring a number of interesting situations, which  we
hope will bear fruit in the not too distant future.  We  are
also  mindful  of  our internal investment  requirements  to
facilitate organic growth.

I  would  like to thank my fellow directors, the  staff  and
you,  our  shareholders, for your continuing support  and  I
look   forward   to  being  able  to  report  on   continued
improvement in the Group's performance in my next Chairman's
Statement.



D B Liversidge CBE

28 March 2001

SURGICAL INNOVATIONS GROUP PLC
Consolidated profit and loss account

                                             2000      1999
For the year ended 31st Decembter 2000      £'000     £'000
                                                  
Turnover (including fees and                1,790     1,255
royalties)
Cost of sales                                (838)     (543)
                                                  
Gross profit                                  952       712
                                                  
Administrative expenses before             (1,067)   (1,333)
exceptional items
Exceptional administrative expenses           (30)       -
                                                  
Administrative expenses                    (1,097)   (1,333)
                                                  
Operating loss                               (145)     (621)
Interest receivable                            25        49
Interest payable                               63      (122)
                                                  
Loss for the year                             (57)     (694)
                                                  
Loss per ordinary share                    (0.02p)    (0.3p)
                                                  

SURGICAL INNOVATIONS GROUP PLC
Consolidated balance sheet

                                31                31
                              December         December
                               2000              1999
As at 31st December 2000   £'000   £'000    £'000    £'000
                                                     
Fixed assets                                         
Tangible assets                    272               312
                                                     
Current assets                                       
Stocks                     428              349      
Debtors                    601              377      
Cash at bank               374              767      
                         1,403            1,493    
Creditors: amounts                                   
falling due
within one year            (508)            (601)    
                                                     
Net current assets                 895               892
                                                     
Total assets less                                    
current liabilities              1,167             1,204
Creditors: amounts                                   
falling due
after more than one year:                            
Convertible debt                  (111)           (1,966)
                                                     
Net assets/(liabilities)         1,056              (762)
                                                     
Capital and reserves                                 
Called up share capital          2,540             2,040
Share premium account     16,029           14,654   
Capital reserve              329              329      
Accumulated losses       (17,842)         (17,785)

                                (1,484)           (2,802)
                                                     
Equity shareholders'             1,056              (762)
funds


SURGICAL INNOVATIONS GROUP PLC
Consolidated cash flow statement

                                                  
                                       
                                2000           1999
For the year ended 31st     £'000   £'000  £'000  £'000
December 2000
                                                  
Net cash (outflow) from operating   (417)         (372)
activities
Returns on investments and                        
servicing of
of finance                                        
Interest received           25             49     
Interest paid               83             (116)  
Interest element of         -              (1)    
finance lease rentals
                     
Net cash inflow/(outflow)
from returns on
investments and servicing           108          (68)
of finance
                                                 
Capital expenditure                              
Purchase of tangible fixed  (57)           (117)  
assets                                     
Sale of tangible fixed      -              7     
assets
Net cash (outflow) from                          
capital
expenditure                         (57)         (110)
                                                 
Net cash (outflow) before           (366)        (550)
financing
                                                 
Financing                                        
Principal repayments under                       
finance
leases and loans            (9)            (81)  
                                                 
Net cash (outflow) from             (9)          (81)
financing
                                                 
(Decrease) in cash                  (375)        (631)

Notes

1    The Group financial statements consolidate those of the
     Company and of its subsidiary undertakings drawn up to 31
     December 2000. The results of subsidiaries accounted for
     under the acquisition accounting method are included in the
     consolidated profit and loss account from the date of their
     acquisition. The results of subsidiaries, accounted for
     under the merger accounting method, are included in the
     consolidated profit and loss account as if they had always
     been part of the Group. Intra-Group sales and results are
     eliminated on consolidation and all sales and results relate
     to external transactions only.

2    The  loss  per  Ordinary Share has been  calculated  by
     dividing the loss attributable to ordinary shareholders for
     the  year ended 31 December 2000 of £57,000 (1999: loss
     £694,000) by the weighted average number of Ordinary Shares
     in issue during that year of 244,329,194 (1999: 204,007,680)
     and amounted to 0.02 pence per share (1999: loss 0.3 pence
     per share).

3    Copies of the Report and Accounts will be posted to all
     shareholders and copies will be available to the public from
     the company's registered office at Clayton Park, Clayton
     Wood Rise, Leeds, LS16 6RF.

4    The  annual  general meeting will be held on  26  April
     2001 at 2pm at the Parkway Hotel, Otley Road, Leeds.