Interim Results

Surgical Innovations Group PLC
29 September 2000

                SURGICAL INNOVATIONS GROUP PLC
     Interim Results for the half year ended 30 June 2000

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 2000.

Financial Results
Turnover up at £835,000 (1999: £696,000)

Reduction in pre-tax loss £62,000 (1999: £377,000)

Conversion of £1,874,637 of loan notes into equity

Operational Highlights
New opportunities in autologous blood products

Steps to reduce sales of third party products not aligned with
core business activity leading to reduction in selling costs.

ION Product Solutions successful manufacture and subsequent
launch of SEPRAFILM applicator

The development of the F4 laparascopic forceps handle has been
completed and successfully launched with great interest from
overseas companies

Commenting on the results, Douglas Liversidge Chairman said: '
The board are fully committed to increasing shareholder value
and we recognise that to significantly increase this value we
need to search out appropriate acquisitions to go alongside
our steady but increasing organic growth.  We confidently
anticipate that the improving trends experienced over the past
year will continue and I look forward to reporting further
improvements in the company's performance in my next Report.'

Surgical Innovations Group plc                    Citigate Dewe Rogerson
Graham Bowland - Finance Director                 Grace Marriner
Tel: [phone]                                Tel : [phone]

                SURGICAL INNOVATIONS GROUP PLC
                               
                   CHAIRMAN'S INTERIM REPORT
                               
                  Six Months to 30 June 2000



At the end of the last financial year I was able to report a
significant improvement in the financial performance of your
company.

I am pleased to report that this positive trend has continued
strongly, resulting in a reduction in the pre-tax loss for the
six months ended 30 June 2000 to £62,000 (1999: £377,000).
Turnover for the period improved to £835,000 (1999: £696,000)
including increased royalties from Genzyme, whilst costs were
tightly controlled.

During the period, 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 for the current calendar year. As a consequence,
holders took the opportunity to convert £1,874,637 of loan
notes into equity.  This had the beneficial effect of saving
the company interest of £121,000, whilst at the same time
significantly improving the net asset position in the balance
sheet.

In my Report accompanying the annual accounts I indicated that
the Board had commenced a strategic review of the company's
activities.  We have made significant progress in redefining
our strategic plans.  As a result, the company will continue
to grow its business and develop innovative instruments in the
field of minimally invasive surgery.  It will also continue
with blood products, where there is continuing customer
interest and increasing demand; we are investigating the
possibility of developing new products in this area.  We
continue to search for a strategic partner to provide the
necessary investment to develop this market more speedily, but
the existing products are selling satisfactorily.  Steps have
also been taken to reduce sales of third party products not
aligned to our core business activities and there has been a
subsequent reduction in selling costs.

An exciting area of development for the company is ION Product
Solutions, the division run by our technical director, Stuart
Moran, with his talented young team, which offers design and
manufacturing solutions to other healthcare companies, as well
as dealing with the company's own product developments.  In
particular the design and manufacturing contract with Genzyme
France in respect of a device for the laparascopic deployment
of Genzyme's anti-adhesion barrier, SEPRAFILM, is continuing
satisfactorily and our relationship with this important
customer is growing apace.  The development of the F4
laparascopic forceps handle has been completed and
successfully launched and there is considerable interest from
a number of overseas companies.

ION continues to apply a creative and innovative approach to
new product development.  Relationships with some
internationally renowned medical companies are being developed
and our design and development abilities are increasingly
being recognised.

At the Annual General Meeting I announced various Board
changes.  Stuart Moran, technical director, and Graham
Bowland, finance director, who jointly took on the day-to-day
responsibilities of the company, pending an appointment of a
new managing director, have done an exceptional job in
managing all aspects of the business, supported by loyal and
dedicated staff.  I am particularly impressed with the way
that costs have been tightly controlled and cash conserved.

The Board is fully committed to increasing shareholder value.
We recognise that to significantly increase this value, we
need to search out appropriate acquisitions to go alongside
our steady but increasing organic development.

We confidently anticipate that the improving trends
experienced over the past year will continue and I look
forward to reporting further improvements in the company's
performance in my next Report.

Douglas Liversidge
Chairman.

29/09/00

Profit and Loss Account

                            Unaudited    Unaudited    Audited     
                             6 months     6 months   12 months
                                   to        to         to
                              30.6.00     30.6.99      30.12.99 
                                 £000        £000        £000     
                                                                  
Turnover (including licence fees) 835         696       1,255     

Cost of sales                    (349)       (300)       (543)     
                                                                  
Gross Profit                      486         396         712     

Administrative expenses
before exceptional item          (600)       (739)      (1,333)     
                                                                  
Operating loss                   (114)       (343)       (621)     

Exceptional item                                                             
administrative expenses           (30)           -           -     

Net interest (payable)/            82        (34)        (73)     
receivable

Loss attributable to shareholders (62)       (377)       (694)     
                                                                  
Loss per ordinary share         (0.03p)      (0.2p)      (0.3p)     
                                                                  
Notes:  

1.  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 1999 have been extracted from the full accounts for that
year, on which the auditors gave an unqualified report and which have been filed
with the Registrar of Companies.

2.  The exceptional administrative expenses relate to a compensation for loss of
office payment made following the recent board changes.

3.  The directors have not declared an interim dividend.

4.  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 2000
was 253,999,608, at 31st December 1999 was 204,009,240 and at 30th June 1999 was
204,007,427.

Balance Sheet

                                 Unaudited   Unaudited  Audited
                                 6 months    6 months   12 months to
                                 to 30.6.00  to 30.6.99   30.12.99
                                                                 
Fixed Assets                                              

Tangible Assets                     273        307          312

Current Assets                                          
                                                             
Stock                               457        312          349
                                                              
Debtors                             403        440          377
                                                             
Cash at bank and in  hand           488        998          767

                                  1,348      1,750        1,493
     Creditors:                                          
     falling due within one year   (459)      (541)        (601)

 Net current assets                 889      1,209         892
                                                             
  Total assets less               1,162      1,516        1,204
  current liabilities
                                                             
Creditors:                                                   
amounts falling due after
more than one year                 (112)    (1,961)      (1,966)
                                                             
Net assets/(liabilities)          1,050      (445)        (762)
                                                             
Capital and reserves              1,050      (445)        (762)

Note:                                                             
                                                                 
The balance sheet at 30th June 2000 reflects the conversion in the period of
£1,874,637 convertible loan notes and the subsequent issue of 49,990,368 shares.