Major Breakthrough with NHS

Advanced Medical Solutions Grp PLC 02 December 2004 For Immediate Release 2 December 2004 Advanced Medical Solutions Group plc ('AMS' or the 'Company') Major breakthrough in NHS growth strategy Inclusion on advanced woundcare dressings contract for NHS Hospitals in England Winsford, UK: Advanced Medical Solutions (AIM: AMS), the global woundcare technology company, is pleased to announce that it has been selected for inclusion in a Framework Agreement for the provision of advanced woundcare dressings to hospitals throughout England. The agreement follows a process during which potential suppliers were short listed, and is effective from December 2004 to September 2006 with an option to extend to September 2008. It covers the full range of AMS' advanced woundcare products, which will be sold under the ActivHeal(TM) brand by the Group's MedLogic direct sales and marketing team. Framework Agreements, established by the NHS Purchasing and Supply Agency (PASA) which acts for the NHS Logistics Authority, are aimed at reducing costs in high expenditure categories in the NHS. This follows on from the initiative taken by the Commercial Directorate of the Department of Health under the Supply Chain Excellence Programme (SCEP). It is estimated that the NHS currently spends in excess of £100 million on advanced woundcare dressings. These products are used in hospitals, nursing homes and community care and are supplied through hospitals purchasing through the NHS Logistics Authority, off-contract through distributors or by prescription under the Drug Tariff. ActivHeal(TM) is a rational response to cost pressures on woundcare budgets whereby savings made on standard products for routine wounds allow funding of higher technology products for problematic wounds. AMS' route to market strategy is to fulfil the demand for these standard products by selling either directly, as in the UK, or via private label partners, whilst continuing to sell its differentiated products through its major woundcare partners under their leading brands. As a UK based technology company, AMS is ideally placed to become a new generation woundcare supplier through a balance of innovation and cost management by integrating with the end user market. This allows significant cost savings to be achieved by the NHS along the lines of the highly successful generic pharmaceutical model. Commenting on today's announcement, Dr. Don Evans, Chief Executive, said: 'I am delighted that we have been selected under this Framework Agreement, which is a major step forward in strengthening our UK presence as part of broadening our routes to market. Coupled with our previous Drug Tariff approval announced in December 2003, it means that our ActivHealTM woundcare brand is now available throughout the NHS in England. In conjunction with our market leading medical adhesive products, this allows us to provide a continuum of care covering acute wounds in A & E, surgical incisions in the operating theatre and chronic wounds.' For further information, please contact: Advanced Medical Solutions Group plc Tel : +44 (0) 1606 545508 Don Evans, Chief Executive Mary Tavener, Finance Director www.admedsol.com Buchanan Communications Tel: +44 (0) 20 7466 5000 Mark Court, Mary-Jane Johnson Notes to Editors: Advanced Medical Solutions is a leading company in the development and manufacture of products for the $15 billion global woundcare market. Founded in 1991 and currently quoted on AIM, Advanced Medical Solutions is focused on the design, development and manufacture of innovative and technologically advanced products for woundcare and other medical applications. In-house natural and synthetic polymer technology is used to provide advanced wound dressings based on the moist healing principle. AMS's resources ensure a unique position as a vertically integrated 'one stop shop' to provide all categories of moist wound healing products. The Company has the capability to move from product design and development through to production and delivery ready for distribution into customer markets. The acquisition of MedLogic in 2002 has brought AMS products and technology in cyanoacrylate based tissue adhesives that offer benefits over sutures and staples for closing wounds sold direct to hospitals or through distributors. AMS's technology and products currently serve the majority of the key global markets with strategic partners including 3M, Novartis, Johnson & Johnson, Molnlycke Healthcare, Coloplast, Smith + Nephew and Cardinal Health. This information is provided by RNS The company news service from the London Stock Exchange
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