Proposed 16 for 31 Rights Issue to Raise £7m

Advanced Medical Solutions Group PLC
17 November 1999

                    ADVANCED MEDICAL SOLUTIONS GROUP PLC.,
              Proposed 16 for 31 Rights Issue to Raise £7 million
                                       
Winsford, 17 November 1999, Advanced Medical Solutions Group plc., (AMS),
announces a Proposed Rights Issue,

16 for 31 Rights Issue at 22p per share to raise £7 million underwritten by
Greig Middleton.  The proceeds will:

*    Provide resources for the forthcoming launch of the Novartis SavlonR
ActivHealTM product range into the consumer market;
     
*    Fund further investment in research and development in the fields of
aqueous polymers, tissue engineering, device coatings and drug delivery; and

*    Allow the continuing transition from a research-based organisation to one
with greater emphasis on manufacturing, sales development and profitability.
  
The Rights Issue will be subject to the passing of the necessary resolutions
by shareholders at an Extraordinary General Meeting to take place on 10
December 1999, notice of which is contained in a circular being posted to
shareholders today.  More details follow.

Review

Roy Smith, Chief Executive Officer of AMS said:

'We are delighted with this vote of confidence from our Shareholders.  We will
continue  to  invest  to capitalise on the potential of our  products  in  the
Consumer Woundcare market to justify their support.'

'The  recent  agreement with Novartis Consumer Healthcare  UK  to  market  and
distribute the ActivHealTM range of products as SavlonR ActivHealTM in the  UK
and the Republic of Ireland confirms our confidence in our product range.   We
look  forward  to  expanding  this  agreement  to  cover  additional  European
markets.'

'We  recognise that our investment in marketing and promotion is better served
through  relationships with strong marketing partners  such  as  Novartis  and
negotiations   are  at  an  advanced  stage  for  marketing  and  distribution
agreements for our skin care product range with leading companies in the US.'

Godfrey Axten, Chief Executive of Novartis Consumer Healthcare UK added,  'The
ActivHealTM  range  of products provides us with an excellent  opportunity  to
enter  a  new sector of the first-aid market.  We are delighted to  add  these
products  to  our  existing range and look forward to developing  further  our
relationship with AMS.'

For further information, please contact:

Advanced Medical Solutions Group plc
Roy Smith, Chief Executive
Mary Tavener, Finance Director                    Tel: [phone]

Gavin Anderson & Company
Philip Ward                                       Tel: [phone]

Greig Middleton & Co. Ltd.
Robert Clinton
Jonathan Becher                                   Tel: [phone]


Greig  Middleton  &  Co. Limited, which is regulated by The Securities and
Futures Authority Limited, is acting  exclusively for Advanced Medical
Solutions Group plc in connection with the matters described in this document,
Greig Middleton & Co. Limited is not acting for any recipient of this document
and  will  not be responsible to any such recipient for providing to him the
protections afforded to customers of Greig Middleton & Co. Limited or for
advising any such person on the contents of this document or any transaction
or arrangement referred to in this document.


Part B follows.


                    ADVANCED MEDICAL SOLUTIONS GROUP PLC.,
              Proposed 16 for 31 Rights Issue to Raise £7 million
                                       

AMS is today announcing a proposed rights issue to raise £7 million  before
expenses, which has been underwritten by Greig Middleton.  Further information
on the Rights Issue, which has been extracted from the circular which is
expected to be posted to shareholders today, is set out below.

Background

As described in the 1998 Annual Report and Accounts, 1998 marked another year
of significant  change for the Group as it continued to make the transition
from a research based company to a fully commercial business.  Turnover in the
year ended 31 December 1998 increased to £5.4 million (1997: £3.3 million),  a
rise  of nearly 65 per cent, and the Group reported a reduced pre-tax loss  of
£4.9 million (1997: loss of £5.6 million).

At  the same time, the Board continued to review the business strategy of the
Group and, in October 1998, announced a rights issue to raise £10 million
(before expenses) to permit the implementation of a more focused three year
business plan.  This plan highlighted the need to put extra resources into the
Consumer  Woundcare business and Research and Technology, rather than solely
targeting the business to business Professional Woundcare market.  The net
proceeds of that rights issue, to the extent expended to date, have largely
been utilised to fund the continuing trading losses of the Group including the
higher than expected costs of launching the new Consumer Woundcare products
and the costs incurred in improving manufacturing processes as the Consumer
Woundcare business is established.

The success of the Consumer Woundcare strategy is already apparent, and is
described within the Current Trading and Prospects section below.

The Board  has concentrated on rationalising the operations in the Group.
During the final quarter of 1998, the decision was taken to relocate the
manufacturing facility in Denver, Colorado, to Winsford, Cheshire.  The Group
has successfully completed this programme and it is leading to operational
synergies.

Current Trading and Prospects

The Group is divided into three business units, these being Advanced Woundcare
(comprising Consumer Woundcare and Professional Woundcare), Advanced
Healthcare and Research and Technology.



Advanced Woundcare
Consumer Woundcare

In  the October 1998 rights issue document, the Group stated its intention to
start  a  new  business  in the consumer woundcare market  which  would  incur
significant start-up investment costs.  The additional costs relating to the
required changes in manufacturing processes and the additional sales,
marketing and  promotional expenditure necessary to promote the ActivHealTM
and SpyroflexR brands were significant and contributed to the increased loss
described  above.  The Group achieved the launch of 15 new products within
Consumer Woundcare in the first six months of 1999.

The benefit of this investment can already be seen, with Consumer Woundcare
sales for the first six months of 1999 being £710,000 (324 per cent)ahead of
the same period last year, and, while the investment in launching ActivHealTM
and SpyroflexR has proved to be more costly than anticipated, the demand for
our Consumer Woundcare products continues to increase.

The launch of Consumer Woundcare has resulted in a distribution agreement with
Novartis  which was signed in September 1999.  Under this agreement,  Novartis
will market and distribute our current ActivHealTM  range as SavlonTM
ActivHealTM to the consumer market within the UK and Republic of Ireland.  The
agreement provides for an initial payment, future  royalties and minimum
purchase quantities by Novartis over a five year period.

The Group will focus on agreements similar to that with Novartis, as it
recognises that the investment in marketing and promotion is  better served
through relationships with larger organisations  such as Novartis.   Other
leading pharmaceutical organisations have also shown interest in marketing our
Consumer Woundcare product range in various countries, and more agreements are
expected to be signed in the coming months.

As a result of the strong growth within Consumer Woundcare, the Group is
becoming a more balanced manufacturer of high technology woundcare products.

Professional Woundcare
Professional  Woundcare sales of approximately £1.8 million in the first six
months  of  1999  have  been disappointing, largely as a  result  of a  major
shortfall in sales of foam, primarily MitraflexTM and FlexzanTM, in  the  very
difficult  US market.   Excluding these two products, Professional  Woundcare
sales in the first six months of 1999 were £213,000 (14 per cent) ahead of
last year.  The Board expects an improvement in this business segment during
the second half of 1999.



Advanced Healthcare
The Group has successful commissioned a new pilot dipping  plant which is
utilising the Group's proprietary polymer formulation to provide coatings  for
the high value, clean room glove market.

The Group has received interest from leading medical glove companies which are
very interested in alternatives to the currently available latex brands, now
identified  as  having the potential to cause serious  skin  allergies.   The
Board believes that the Group's proprietary polymer formulations could provide
such an alternative.

Research and Technology
In  the field of tissue engineering, patent applications have been submitted
during  the current year and strong links have been established with academic
institutions in the UK and USA which have quality research capabilities within
this  exciting new area of business development.  While it is too early to be
specific  with regard to the achievements to date, the Board remains confident
that there is significant merit in continuing to invest in this field with a
view to using our core proprietary base for cell culture, cell growth and skin
regeneration.

Outlook
The  Board is  well aware  of  the progress  required to meet Shareholder
expectations, the focus going forward will be to increase revenue streams, to
improve  manufacturing productivity and operating efficiencies and to ensure
that the development of the core technology continues within Professional  and
Consumer Woundcare, Advanced Healthcare and Research and Technology.

The Group critically depends for its success on generating sufficient revenues
coupled  with a level of manufacturing efficiency which would  allow it to
achieve profitability.   The  Board  remains optimistic that  this can be
achieved.

Management and Board Changes
The senior executive management team is now in place following the appointment
in  July this year of Mary Tavener as Finance Director.  Prior to joining the
Group,  Mary  held  positions with BTP plc as group financial  controller  and
Churchill  Tableware Ltd as finance director.  To continue  the  reduction in
operating expense at a senior level, it is intended to reduce the  number of
non-executive directors by the end of this year.

Reasons for the Right Issue
The  Rights  Issue  will  provide the resources necessary  for  the  Company's
continuing  transition from a research-based organisation to one with  greater
emphasis on manufacturing, sales development and profitability.


The  net  proceeds from the Rights Issue will be approximately  £6.5  million.
These proceeds will be used to fund the cash requirements of the Group arising
from the continuing trading losses of the business as the Group is transformed
into a fully commercial business, as well as to:

  finance  sales,  marketing  and  manufacturing  investments to  exploit
  identified growth opportunities within the consumer woundcare market;

  continue  investment in Research and Technology in order to  create  new
  product development, particularly in the fields of aqueous polymers,  tissue
  engineering and drug delivery; and

  continue the development of Advanced Healthcare in order to maximise the
  commercialisation of the Group's core polymer technology in non-woundcare
  applications.

Terms and Conditions of the Rights Issue
The  Company  is proposing to offer up to 31,848,144 New Ordinary  Shares,  in
aggregate, by way of rights to Qualifying Shareholders at 22 pence per  share,
payable in full on acceptance.

The Rights Issue will be made on the basis of:

              16 New Ordinary Shares for every 31 Ordinary Shares

held  by  Qualifying Shareholders on the Record Date and so in proportion  for
any  number  of  Ordinary  Shares then held.  The  entitlement  of  Qualifying
Shareholders  to  New Ordinary Shares under the Rights Issue will  be  rounded
down  to  the nearest whole number of New Ordinary Shares.  Fractions of New
Ordinary Shares will not be allotted.

The  New Ordinary Shares will, when issued and fully paid, rank pari passu  in
all respects with the Existing Ordinary Shares, including the right to receive
all dividends and other distributions hereafter declared, made or paid.

The  Rights Issue is  conditional, inter alia, upon Admission  becoming
effective.

Application has been made to the London Stock Exchange for the  New  Ordinary
Shares  to  be  admitted to the Official List, subject,  inter  alia,  to  the
Underwriting  Agreement being unconditional.  Dealings  in  the  New  Ordinary
Shares are expected to commence, nil paid, at 8.00am on 13 December 1999.

The Provisional Allotment Letters will show the number of New Ordinary Shares
allotted  to Qualifying  Shareholders  and  contain  instructions  regarding
acceptance and payment, renunciation, splitting and registration in respect of
the  New  Ordinary  Shares.   The Provisional Allotment  Letters,  which  are
temporary documents of title, are expected to be despatched on the day of the


EGM,  subject to the passing of the resolution to be considered  at  the  EGM.
The Provisional Allotment Letters are expected to be renounceable until  26
January 2000.

The latest time and date for acceptance and payment in full in respect of the
Rights Issue is expected to be 3.00pm on 6 January 2000.

Further details of the Rights Issue and the procedure for acceptance and
payment are set out in Part II of the circular.

Extraordinary General Meeting
An Extraordinary General Meeting is to be held at the offices of Wragge & Co.,
55 Colmore Row, Birmingham B3 2AS at 12.00 noon on 10 December 1999 at which a
special  resolution  will  be proposed (a) to increase  the  authorised  share
capital  of  the  Company  from £8,000,000 to £12,000,000;  (b)  to  give  the
Directors the necessary authority pursuant to section 80 of the Act  to  issue
up  to  36,428,228  Ordinary Shares; and (c) to disapply  the  statutory  pre-
emption rights in connection with the Rights Issue and otherwise to an  extent
limited to 4,677,696 Ordinary Shares.  The authority will, inter alia,  permit
the allotment of the New Ordinary Shares.

Share Option Scheme
Holders  of  options  under the Share Option  Scheme  are  not entitled  to
participate in the Rights Issue.  However, the entitlements of option  holders
under  the rules of the Share Option Schemes are subject to adjustment  as  to
the number of shares under option and the option exercise price to reflect the
bonus  element of the Rights Issue.  In accordance with the rules of the Share
Option  Schemes,  the  adjustment can be effected only  upon  receipt  by  the
Directors  from  the Company's auditors of confirmation in  writing  that  the
adjustment  is  in their opinion fair and reasonable and are  subject  to  the
approval  of  the Inland Revenue in the case of the Executive Scheme  and  the
SAYE  Scheme.   Option  holders will be notified of  the  adjustments  in  due
course.

Overseas Shareholders
The attention of Qualifying Shareholders who have registered addresses outside
the  United  Kingdom or who are citizens of countries other  than  the  United
Kingdom is drawn to paragraph 6 of Part II of the circular.

CREST
Following a board resolution passed on 15 October 1996 in accordance with the
CREST Regulations, Ordinary Shareholders have been able to hold shares in  the
Company either in the form of share certificates or in electronic form within
CREST.

New  Ordinary Shares will be issued in certificated form unless a  Shareholder
holds  Ordinary Shares in a CREST account, in which case he may elect to  hold
his  New  Ordinary Shares in uncertificated form in his Provisional Allotment
Letter.

Further Information
Further  information is set out in the circular to Shareholders  being  posted
today.  Definitions in the circular apply to this announcement.

Directors Undertakings and Recommendations
Roy  Smith, Donald Evans, John Berry, Geoffrey Vernon and James Noble,  having
entitlements  under  the Rights Issue in respect of their respective  existing
holdings  of  Ordinary Shares together totalling 117,326 New Ordinary  Shares,
representing  0.37  per  cent  of the New Ordinary  Shares,  have  irrevocably
undertaken to take up their rights in full.

The  Directors consider the Rights Issue, the increase in share  capital,  the
authorisation  under  section 80 of the Act and  the  disapplication  of  pre-
emption rights under section 95 of the Act each to be in the best interests of
the Company and its Shareholders as a whole.

Accordingly,  the  Directors unanimously recommend  Shareholders  to  vote  in
favour  of the resolution to be proposed at the Extraordinary General Meeting,
as  they  intend to do so in respect of their own beneficial shareholdings  of
227,320  Ordinary  Shares, representing approximately 0.37  per  cent  of  the
Existing Ordinary Shares.

This  news  release  contains  forward-looking  statements  that  reflect  the
Company's  current  expectations  regarding  future  events.   Forward-looking
statements  involve  risks  and uncertainties.   Actual  events  could  differ
materially  from  those projected herein and depend on  a  number  of  factors
outside the Company's control.



                    Expected Timetable of Principal Events
                                       
Record Date for entitlement to the                               
Rights Issue                                      3 December 1999

Latest time and date for receipt of                              
Forms of Proxy                         12.00 noon 8 December 1999
                                                                 
Extraordinary General Meeting         12.00 noon 10 December 1999

Despatch of Provisional                                          
Allotment Letters                                10 December 1999

Dealings in the New Ordinary Shares                              
to commence, nil paid                 08.00am on 13 December 1999

Latest time and date for splitting                               
Provisional Allotment Letters, nil       3.00pm on 4 January 2000
paid

Latest time and date for acceptance                              
and payment in full                      3.00pm on 6 January 2000

Dealings in the New Ordinary Shares                              
to commence, fully paid                08.00am on 10 January 2000

Latest time and date for splitting                               
Provisional Allotment Letters,                                   
full paid                               3.00pm on 24 January 2000

Latest time and date for                                         
registration of renunciation of                                  
Provisional Allotment Letters, full    
paid                                    3.00pm on 26 January 2000

Definitive certificates for the                                  
New Ordinary Shares despatched and                               
CREST accounts credited                        by 2 February 2000