Trading Statement & Agreement

Advanced Medical Solutions Grp PLC 08 December 2003 For Immediate release 8th December 2003 Advanced Medical Solutions Group plc ('AMS' or the 'Company') Trading update & New supply agreement for its advanced woundcare products with ADL GmbH ('ADL') Winsford, UK, Monday 8th December 2003 - Advanced Medical Solutions Group plc (AIM: AMS), the global woundcare technology company today announces that it continues to make good progress in signing new partners and progressing new products through development and regulatory approval for launch into the woundcare market. The Company currently has four products in the latter stages of FDA and CE Mark approval. Significant growth in turnover has been achieved during the second half of the year both through the Company's business to business partnerships and its direct UK sales into the NHS. This growth reflects the investments that have been made in Sales & Marketing and R & D since the beginning of the year in order to take the Company through to profitability next year. Following the disappointments and delays in signing up partners and launching new products that occurred in the first half of the year, this upturn in business had been anticipated. However, despite signing up new partners, these initial delays have resulted in certain products being introduced to the market place later than originally anticipated to fit in with partners' revised launch programmes. This has caused the second half year growth to be less than anticipated, which will result in 2003 sales being lower and losses being greater. The Board however, remain confident that this is a year-end timing issue, and based on our partners successfully launching the new products according to schedule, the Company will come through to profitability in 2004 within current cash. ***************** In a separate announcement released today: AMS has entered into a supply and distribution agreement with ADL GmbH allowing for the Company to expand its business in the German woundcare market. Under the terms of the agreement announced today, AMS will supply a broad range of its woundcare products including alginate, hydrocolloid, foam and film dressings for distribution under ADL's Decutastar(R) brand. Munster based ADL is a privately owned marketing and distribution company, operating primarily in the community care sector with a focus on products for the treatment of patients with chronic wounds such as ulcers and pressure sores. Commenting on this agreement, Dr Don Evans, CEO of AMS, said: 'We are delighted to have added ADL to our list of partners, and this agreement offers an excellent opportunity to further expand our business in Germany. ADL's strong presence in the community sector fits well alongside our existing hospital and nursing home business. Mr. Peter Orth, CEO of ADL GmbH, added: 'The wide range of advanced woundcare materials and products that AMS provides makes them an ideal technology partner for us. We look forward to developing our relationship and adding further products to our portfolio.' - ENDS - For further information, please contact: Advanced Medical Solutions Group plc Tel : +44 (0) 1606 863 500 Don Evans, Chief Executive Officer Geoffrey Vernon, Chairman 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 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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