Trading Statement

Advanced Medical Solutions Grp PLC 16 January 2003 For Immediate Release: 07:00 Thursday 16th January 2003 Advanced Medical Solutions Group plc ('AMS' or the Company) FDA 510(k) clearance, Board Change and Trading Update Winsford, UK: AMS, the global woundcare technology company today announced approval of a 510(k) from the US Food and Drug Administration, changes to its Board and Senior Management Team and an update on its trading situation. The Company is pleased to announce that it has just received FDA 510(k) clearance in the USA for extending the use of its MedLogic LiquiShieldTM skin protection product to include damaged skin. This greatly increases the potential market for this product within Professional Woundcare, and is also a key stepping stone to the Company entering the rapidly emerging consumer liquid bandage market sector later this year - a sector currently estimated to be worth in excess of $20 million. With regard to management changes, Tom Donovan, aged 49, has joined AMS as Managing Director of the existing Professional Advanced Woundcare business with responsibility for all related functions at the Company's Winsford site. Tom has a wide range of experience gained internationally in sales, marketing and operations in the medical and related industries. He was the former founder and Managing Director of Yew Tree Pharmaceuticals. Tom will work alongside Richard Stenton, Managing Director of the recently acquired MedLogic medical adhesives and sealants business, to maximise growth of the Group's Professional product range targeted at hospitals and nursing homes. Godfrey Axten, aged 54, has been appointed to run a focused Consumer Division addressing the retail pharmacy, sports and grocery market for first aid, footcare and skincare, utilising technology transferred from both the Advanced Woundcare and MedLogic operations. Godfrey has had a successful career in sales, marketing, business development and senior general management in Consumer OTC with Schering Plough and Warner Lambert in the USA and more recently with Novartis Consumer Health, with positions in Scandinavia, Japan and as UK Managing Director. Godfrey brings the appropriate expertise to establish and deliver a viable global Consumer business for AMS products. Tom and Godfrey will join Richard Stenton in reporting directly into the CEO, Dr. Don Evans. Following these appointments, Graeme Brookes (Sales & Marketing Director) has resigned from the Board with immediate effect. The Board would like to thank Graeme for his contribution to the Group since joining in April 1998 and wish him well for the future. For the Group as a whole, further progress has been made during 2002. The strategic acquisition and integration of the MedLogic business has met expectations. This business is delivering higher value products, which are enhancing the gross margins of the Group. Our Professional Woundcare business continues to grow well ahead of the market rate, however, the progress made in rebuilding a Consumer business around higher value products has been disappointing. This is expected to result in our overall sales and profits in Woundcare being similar to the previous year. A number of major new business opportunities expected for completion towards the end of 2002 did not materialise before the year-end as we did not manage to conclude deals that the Board felt would deliver maximum value for shareholders in the future. However, we expect completion of some of these opportunities imminently, in particular we are about to start distribution of the MedLogic LiquiShieldTM skin protection product in the USA hospital market with one of AMS's woundcare partners. In addition, we have negotiated termination of the supply contract for LiquiShieldTM in the UK, which will give us greater flexibility to market this product in the future. New partnership deals in other key international markets are expected to be completed during Qtr.1 that will contribute to significant new sales during 2003. Commenting, Don Evans stated: 'The FDA clearance of LiquiShieldTM for damaged skin offers exciting new opportunities for growing the business both within Professional Woundcare and Consumer Skincare. I am also delighted that we have been able to attract executives of the calibre of Tom and Godfrey to join AMS at a key point in our development. I remain confident that with these organisational changes providing expertise and focussed leadership in each of our three key business units, we are well placed to deliver the necessary deals and sales revenue to move the Group through to profitability in 2003 within current cash'. - ENDS - For further information, please contact: Advanced Medical Solutions Group plc Tel : +44 (0) 1606 863 500 Don Evans, Chief Executive www.admedsol.com Buchanan Communications Tel: +44 (0) 20 7466 5000 Nicola How / Fergus Mellon Notes to Editors: Advanced Medical Solutions is a leading company in the development and manufacture of products for the £4 billion global advanced woundcare and wound closure 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 recent acquisition of MedLogic has brought AMS products and technology in cyanoacrylate based tissue adhesives and sealants sold direct to A & E departments 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 Beiersdorf. This information is provided by RNS The company news service from the London Stock Exchange
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