Interim Results

SURGICAL INNOVATIONS GROUP PLC
6 September 1999

                               
                               
     Interim Results for the half year ended 30 June 1999

Surgical  Innovations Group plc, the AIM  listed  provider  of
healthcare  products primarily for the operating theatre,  has
announced its interim results for the six month period  to  30
June 1999.

Financial results

- Turnover  down  at  £696K  due  to  delayed  launch  of
  autologous blood products following the merger (1998: £1m)
- Profitability increases after costs are reduced by 16%
- Loss for period at £343K (1998: £233K)

Operational highlights

-  New autologous blood products launched in June have been
   well received in the UK and overseas
-  Government pressures on blood management could help
   increase the use of autologous blood products
-  The licence agreement with Genzyme Surgical Products in
   the US continues to develop with encouraging sales
-  An agreement to design and supply Genzyme in France with
  a new port access device is expected to produce a turnover of
  £200k over the next 12 months
- A  new  instrument for key hole surgery is  soon  to  be
  launched  - the F4 - which is a new handle design making  it
  easier for the surgeon

Commenting  on  the  results, Brian Long Chairman  said:  'The
agreement with Genzyme France and the launch of F4 demonstrate
our  continuing ability to develop innovative product  and  to
secure ongoing business with major medical groups.'

For further information:

Surgical Innovations Group plc         Citigate Dewe Rogerson
Ian Lomas - Managing Director                Keeley Middleton
Tel:  [phone]                       Tel:  [phone]



                              Surgical Innovations Group plc/1

                     Chairman's Statement

Financial Results

Turnover for the 6 months to 30th June 1999 at £696,000 was  a
reduction  from  the £1,068,000 for the equivalent  period  in
1998  (prior  to  the  merger of Haemocell  plc  and  Surgical
Innovations  Ltd)  but an increase over the  £601,000  in  the
immediately  preceding 6 month period, following  the  merger.
With  the  publication of our results for  the  year  to  31st
December  1998 we reported on the disruptions suffered  during
the  consolidation of the Oxford and Leeds  operations.   This
occurred  at  the  time  of introducing  new  Haemocell  blood
collection  products and throughout the  6  month  period  our
supplies  of the products were severely restricted.  This  was
the   primary  reason  for  turnover  being  lower  than   our
expectations.

Overheads at £739,000 were 16% below the equivalent period  in
1998  in spite of incurring considerable expense dealing  with
the introduction of new blood products referred to above.  The
Operating  Loss  at  £343,000 was  higher  than  the  £233,000
incurred  in the first 6 months of 1998 but exactly  half  the
level of the immediately preceding 6 month period.

Report on Operations

The  new Haemocell post-operative blood collection system  was
introduced  in June, and while it was too late to  affect  the
turnover  for  the period, it has been very well  received  by
hospitals  in the UK and internationally.  The inter-operative
system has been on restricted supply until now (September) but
has  been  well  received where it  has  been  used.   The  UK
Government  has  increased  the  pressure  for  better   blood
management within the NHS and, with our new products providing
autologous  rather  than donated blood,  we  look  forward  to
increasing acceptance and turnover from this product range.


                              Surgical Innovations Group plc/2

The  technical licence agreement signed with Genzyme  Surgical
Products  Corporation of the US has continued to develop  over
the  period.   Manufacturing at Genzyme's factory  is  running
smoothly  and  turnover  in  the  US  market  is  encouraging.
Increased  sales  in  the US and better penetration  in  other
world-wide  markets will result in greater royalties  for  our
Company.

In  August  we  announced an agreement with  Genzyme's  French
subsidiary  for  the design and supply of a new  'port  access
device'  (used  for  creating the point of  entry  in  keyhole
surgery).   This 'resposable' product combines  both  reusable
and  disposable components and is aimed at reducing the  costs
associated  with  this type of surgery.  We expect  that  this
supply  agreement will generate turnover in excess of £200,000
over the next 12 months.

Since  the  beginning of the year our design and manufacturing
processes have been audited and approved both by the FDA  (the
US  Food  and Drug Administration) and under the European  CE-
mark  regulations.  It is a tribute to the competence and hard
work  of  our  technical  staff that  all  of  our  regulatory
approvals have been maintained during this demanding time.

UK Distribution

Our  'direct  to hospital' UK sales force has been  restricted
during the period by the supply problems experienced with  our
blood  management products.  As described above this situation
is  now  nearing resolution and we look forward  to  increased
activity and turnover in the UK from these products.

We  have continued to add to our range of distributed products
aimed at the operating theatre and intensive care environment.
We  have  reported previously on Cavaterm, a  device  for  the
treatment  of  menorrhagia, and on  the  RIK  operating  table
mattress system for the reduction of pressure sores.  The most
recent  addition  to  the range is the  Paxman  Cooler,  a  UK
developed product


                              Surgical Innovations Group plc/3

which  reduces  hair loss during chemotherapy  treatment.   We
have already seen encouraging sales with this product and  are
optimistic both as to its clinical effectiveness and potential
commercial success.

Product Development

Development of instruments for endoscopic surgery is ongoing -
the  new product designed for Genzyme France has already  been
referred  to.   A  new  instrument range  called  F4  will  be
launched shortly.  These instruments are based on a new handle
design  which is easier and more effective for the surgeon  to
use.  It will be sold by the Company's own sales force but  is
also  targeted  at OEM customers.  An order has  already  been
secured for handle sets from a major US instrument company.

We  announced  recently  an  agreement  with  the  Engineering
Science department at Oxford University for a research project
into  the  next generation of blood filtration technology  for
the Haemocell intraoperative Autologous Blood Tranfusion (ABT)
product.   This  research will be headed  by  Professor  Brian
Bellhouse,  who  developed  the  filtration  system  for   the
original Haemocell product, and will be aimed at improving the
speed and volume of blood processing.

Board Changes

For  the last three years David Stirling has held the position
of  Finance  Director of the Company working on  a  part  time
basis.  Following the merger and relocation of the Company  to
Leeds  David  indicated that he believed the  position  should
become  full time.  At the beginning of the year we  recruited
Graham  Bowland  as Financial Controller and he  has  done  an
excellent  job  of  completing  the  integration  of  the  two
companies' systems and establishing financial controls.  Today
David Stirling is resigning from the Board and Graham will  be
taking his place as Finance Director and Company Secretary.

                              Surgical Innovations Group plc/4

Graham,  38  years  of  age, has a BSc in  Physics  and  is  a
Chartered  Accountant.  He was Finance Director  at  Britannia
Fine  Cloths and Financial Controller at Countrywide  Leisure.
The  Board has come to know him over the last eight months and
has  gained  confidence  in his ability  to  be  an  excellent
Finance  Director for the Company.  The Board wishes to  thank
David  for  the  faithful service he has  provided,  first  to
Haemocell and then to the merged Surgical Innovations Group.


Strategic Plans and Prospects

The  Company's resources in R&D, device manufacture and direct
distribution  in  the  UK  continue  to  be  targeted  at  the
operating  theatre  environment.  The agreement  with  Genzyme
France and the launch of F4 demonstrate our continuing ability
to  develop innovative product and to secure ongoing  business
with major medical groups.

The  strategic  plan to acquire or invest in  other  companies
with  innovative products or technologies has not had positive
results during the period.  Discussions have been held with  a
number  of potential targets but none, in the opinion  of  the
Board,  would  have added sufficient value to the  Company  or
provided  return to our shareholders.  The Board continues  to
search out new opportunities and in the meantime the Company's
cash  reserves are closely monitored to ensure that funds  are
available for the right investment.

D Brian Long
Chairman
6 September 1999

SURGICAL INNOVATIONS GROUP PLC
Consolidated Profit and Loss Account
For the six months ended 30 June 1999

                            Unaudited  Unaudited     Audited
                          6 months to6 months to12 months to
                              30.6.99    30.6.98    31.12.98
                                £'000      £'000       £'000

Turnover (including licence fees) 696      1,068       1,669
Cost of sales                    (300)      (425)       (858)

Gross profit                      396        643         811

Administrative expenses
before exceptional items         (739)      (876)     (1,730)

Operating loss                   (343)      (233)       (919)
Exceptional items
-  Other operating income           -        233         269
-  Administrative expenses          -          -        (399)
Net interest (payable)/receivablen(34)       (18)        (23)

Loss attributable to shareholdersm(377)      (18)     (1,072)

Loss per ordinary share
(0.2p)                                       0.0p       (0.5p)

Notes:
1.The  consolidated  profit and loss account  above  has  been
 prepared  under the merger accounting method and  accordingly
 comparative figures have been restated as appropriate.

2.The  consolidated financial information does not  constitute
 full  accounts within the meaning of the Companies  Act  1985
 and has not been reported on by the auditors or delivered  to
 the  Registrar of Companies.  The figures for the year  ended
 31st   December  1998  have  been  extracted  from  the  full
 accounts  for  that  period, on which the  auditors  gave  an
 unqualified  report  and  which  have  been  filed  with  the
 Registrar of Companies.

3.The  exceptional  other operating income arises  principally
 from the waiver by Getz Bros.  Co., Ltd. of loan premium  and
 interest.   The exceptional administrative expenses  comprise
 costs   associated   with   the   acquisition   of   Surgical
 Innovations Limited and the merger of operations.

4.The Directors have not declared an interim dividend.

5.The  loss per share is based on the weighted average  number
 of  shares  in issue during the period.  The total number  of
 shares  in issue at 30th June 1999 and at 31st December  1998
 was 204,007,427, and at 30th June 1998 was 203,656,686.


Consolidated Balance Sheet
As at 30 June 1999


                               Unaudited Unaudited   Audited
                                 30.6.99   30.6.98  31.12.98
                                   £'000     £'000     £'000


Fixed assets
Tangible assets                      307       327       323

Current assets
Stock                                312       572       362
Debtors                              440       398       307
Cash at bank and in hand             998     2,329     1,369
                                   1,750     3,299     2,038

Creditors:
falling due within one year        (541)   (1,002)     (459)

Net current assets                 1,209     2,297     1,597
Total assets less current
liabilities1                       1,516     2,624     1,902

Creditors: amounts falling due after
more than one year                (1,961)   (2,046)   (1,970)

Net assets/(liabilities)            (445)      578       (68)

                                
Capital and reserves               (445)       578       (68)

Notes

The balance sheet at 30th June 1998 has been adjusted to
reflect:
(a)  the capital reorganisation carried out by Surgical
     Innovations Limited on 7th July 1998;
(b)  the issue of £2,000,000 of convertible loan notes on 7th
     July 1998;
(c)  the issue of 101,828,343 shares by Haemocell plc on 7th
     July 1998 as consideration for Surgical Innovations
     Limited, net of expenses incurred.