Re Distribution Agreement

Deltex Medical Group PLC
10 April 2002



10 April 2002


             Deltex Medical Group plc ('Deltex Medical'/'Company')

                      DELTEX MEDICAL RENEWS AGREEMENT WITH
                  US SUPPLY CHAIN MANAGEMENT COMPANY, NOVATION

Deltex Medical (AIM: DEMG), the AIM listed haemodynamic monitoring company,
announces that it has renewed its agreement with the US national supply chain
management company, Novation.

Novation, based in Irving, Texas, near Dallas, is the supply company for VHA
Inc. ('VHA'), an alliance of more than 2,200 community-based health care
organisations throughout the US, and the University Hospital Consortium ('UHC'),
an alliance of over 100 academic medical centres.

Through their voluntary participation in Novation contracts, through their
membership in VHA and UHC, these organizations and medical centres are able to
purchase medical devices and supplies collectively and thereby benefit from the
resulting economies of scale.  Through the Novation contracting process, VHA and
UHC member clinician councils review all products on a variety of quality and
cost factors.  Based on this review, members eventually recommend products for
inclusion in Novation's contract portfolio, awarding suppliers that offer the
best overall value, such as Deltex Medical.  Novation also sponsors specialized
regional educational programmes for anaesthetists on its adopted products in
which Deltex Medical will participate.

The new contract was facilitated through Deltex Medical's relationship with
Health Care Links, Inc., which organizes and helps implement purchasing
contracts in the USA on behalf of the Company.

Commenting on the agreement with Novation, Nigel Keen, Chairman of Deltex
Medical, said:

'In 2001, more than US$19 billion in U.S. purchases flowed through Novation, so
the fact that this agreement means that the CardioQTM is offered through a
Novation contract represents a great opportunity to introduce our technology to
VHA and UHC members in a time and cost efficient way.  We're very excited about
this opportunity and look forward to establishing many lasting relationships
with the hospital members.'

Jim Beyer, CPM and Senior Product Manager for Novation, Anesthesia and Pain
Management Contract and Program Services, commented:

'The VHA and UHC hospitals have a strong interest in improving the patient
quality of care and reducing patient length of stay and are therefore extremely
pleased to have access to Deltex Medical's CardioQTM technology through this new
agreement.'

For further information, please contact:

Deltex Medical Group, plc
[phone]
Nigel Keen, Chairman and Chief Executive
Ewan Phillips, Chief Financial Officer

Financial Dynamics
[phone]
Stephanie Highett/Sarah Mehanna

Notes to Editors

Deltex primarily develops, assembles and markets a cardiac function monitor and
therapy guidance device, the CardioQTM ('CardioQTM'/'Monitor'). The CardioQTM
incorporates the Company's proprietary software and a narrow, easy-to-use,
minimally invasive, disposable oesophageal probe, used for transmitting and
receiving an ultra-sound ('Doppler') signal. By using this Doppler technology,
the CardioQTM provides clinicians with an early warning on the haemodynamic
condition of critically ill patients. This continuous, real-time monitoring
facilitates the administration of fluids or drugs in a timely fashion and
provides an provides an immediate assessment of their impact.

There are already over 600 CardioQTMs currently in use in hospitals worldwide
and distribution arrangements are in place in over 30 countries. In addition,
there are currently more than 75 clinical publications on the use of the CardioQ
TM which have repeatedly:-

  • validated the results of the Monitor against known standards for measuring
    cardiac output, demonstrating that the technology works

  • proved that the CardioQTM works over a variety of types of operation

  • shown 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.

The Company is also currently developing a number of new products:-

  • A multi-patient probe for use in specific circumstances in certain markets

  • The SupraQTM - a monitor based on the CardioQTM technology but using a
    completely non-invasive probe; the prototype is being prepared for clinical
    testing in the second half of 2002

  • The NeuroQTM - a monitor designed to measure blood flow in the brain; the
    new prototype is in preparation for clinical trials in the second half of
    2002.

The multi-patient probe for use in operating theatres in the UK will be launched
in July 2002.

Health Care Links is an independent consulting group that specializes in
assisting medical supply and service companies in gaining and implementing
national and regional contracts to help businesses with new technologies grow
market share quickly.  The Health Care Links' team develops client relationships
in the acute and non-acute   care markets, as well as developing government and
distribution contracting strategies.www.healthcarelinks.org


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