Acquisition of TECO

Deltex Medical Group PLC 07 February 2006 Deltex Medical Group plc Acquisition of TECO(TM) 7 February 2006 Deltex Medical Group plc ('Deltex Medical' or the 'Company'), the AIM listed haemodynamic monitoring company, today announces that it has acquired the TECO oesophageal Doppler monitor business from Medicina Limited for an undisclosed sum. Medicina Limited is a British medical device company focused on marketing enteral feeding equipment. Since the early 1990s it has developed and marketed an oesophageal Doppler monitor system, the TECO. The TECO monitor uses a re-usable ultrasound probe, which is covered by a disposable single use sheath. Up to three hundred TECO monitors have been installed in hospitals around the world, with the largest bases established in Ireland, China, the UK and India. Deltex Medical has agreed to acquire the intellectual property rights to the TECO system together with all stocks of TECO devices and accessories. To meet the cost of the acquisition and to provide finance for the subsequent integration of the TECO system, the Company has placed with institutional and other investors 1,030,000 new ordinary shares of 1p each at 20p per share to raise £200,000 of cash after expenses. Application will be made for the new shares to be traded on AIM and it is expected that dealings will commence on 14 February 2006. Following the issue of these new shares the Company has a total of 74,149,216 ordinary shares in issue. Deltex Medical's chairman, Nigel Keen, commented: 'The acquisition of TECO will allow us to integrate the best features of the TECO system into the next generation of CardioQ monitors and opens up opportunities to convert the TECO installed base to CardioQs in a number of markets. 'In addition, the acquisition further strengthens our intellectual property portfolio and consolidates our position in the growing market for haemodynamic optimisation.' For further information, please contact:- Deltex Medical Group plc 01243 774 837 Nigel Keen, Chairman nigel.keen@deltexmedical.com Andy Hill, Chief Executive andy.hill@deltexmedical.com Ewan Phillips, Finance Director ewan.phillips@deltexmedical.com Financial Dynamics David Yates david.Yates@fd.com 0207 831 3113 John Gilbert john.gilbert@fd.com Notes for Editors Deltex Medical manufactures and markets the CardioQ monitor, which uses disposable ultra-sound probes inserted into the oesophagus to determine the amount of blood being pumped around the body - 'circulating blood volume'. Reduced circulating blood volume is known as hypovolaemia, which leads to insufficient oxygen being delivered to the organs. This causes medical complications including peripheral and major organ failure which can lead to death. Hypovolaemia, which is akin to severe dehydration, affects virtually every patient having surgery because of the combined effects of pre-operative starvation, the impact of the anaesthetic agents and trauma from the surgery itself. Using fluids and drugs, guided by the CardioQ, to optimise the amount of circulating blood significantly reduces post-operative complications allowing patients to make a faster, more complete recovery and return home earlier. The CardioQ incorporates the Company's proprietary software and a small diameter, easy-to-use, minimally invasive, disposable oesophageal probe that is used for transmitting and receiving an ultra-sound signal. By using this technology, the CardioQ provides clinicians with the ability to haemodynamically optimise critically ill patients and those undergoing routine moderate to major surgery through the controlled administration of fluid and drugs. Haemodynamic optimisation has been scientifically proven to improve the speed and quality of patient recovery and reduce hospital stay. There are already over 1,250 CardioQs currently in use in hospitals worldwide and distribution arrangements are in place in over 30 countries. In addition, there are currently more than 90 clinical publications on the use of the CardioQ which have repeatedly:- • validated the results of the Monitor against known standards for measuring cardiac output, demonstrating that the technology works • proved that the CardioQ works in a wide range of surgical procedures • demonstrated that the Company's technology provides significant health and economic benefits by helping to reduce post-operative complications and length of hospital stays by an average of 30 to 40 per cent for a wide range of patients. This information is provided by RNS The company news service from the London Stock Exchange
Investor Meets Company
UK 100