Trading Statement

Deltex Medical Group PLC
14 January 2002

14 January 2002



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

        Trading Statement and Change in USA Distribution Arrangements



Chichester, United Kingdom - Deltex (AIM: DEMG) today announces an update on
trading for the year ended 31 December 2001.

The Directors expect that total revenue for the year will be about 40 per cent
higher than in 2000 at approximately £1.33 million.  Although the growth rate
achieved is lower, and losses consequently higher, than the market had
anticipated, this is primarily the result of unexpected delays in the Korean
government publishing the reimbursement rate to be used to fund hospitals for
using Deltex's CardioQ and related products.  This would normally have been in
place as early as July 2001, representing the four months standard maximum
following its regulatory approval in Korea in March 2001, and Deltex had
therefore expected the rate to be published in July 2001 or any time
thereafter.  However, the Company learnt in late December 2001 that, although
reimbursement coding was imminent, the delay would stretch into 2002.  These
delays are due to administrative backlogs which have left the CardioQ as one
of a very large number of items awaiting reimbursement coding as a result of
government changes to the health system.

The Directors understand that this backlog is being cleared systematically and
anticipate that the reimbursement coding should be in place in the near
future.  The Directors further believe that Deltex, working closely with its
distribution partner, E-Wha International Inc., is very well positioned to
develop the significant potential of the Korean market.

Deltex also today announces that it has agreed with Primesource Inc to
terminate its exclusive sales agency agreement within the USA.  While the
timing of this has also contributed to sales being less than previously
expected, the Directors strongly believe that it is in Deltex's best interests
to exit this arrangement at this time.

Kemp Coady, Deltex's Chief Executive Officer, commented:

'The year ended 31 December 2001 was one of substantial achievement for
Deltex.  We have passed a large number of significant milestones both towards
opening major new markets, such as Japan, Korea, Brazil, India and South
Africa and in beginning to add depth to our presence in markets where we are
already established, in particular the UK and France.  The Korean delay is
frustrating, especially as we have already identified strong demand to adopt
our technology as soon as the reimbursement barrier has been removed, and we
remain extremely encouraged by the overall potential of this important
market..

'Terminating our US sales agency relationship has completed the first phase of
the repositioning of Deltex in the USA which started earlier in 2001; our
strategy to concentrate on direct, education led sales into selected key
accounts is intended to allow us to tailor our sales and marketing model to
the specific demands of the general US medical market and the US anaesthetics
practice in particular.  Crucially, it also allows Deltex total flexibility to
explore different corporate level approaches to distribution in the world's
largest medical market.

'With our ongoing sales strategy strongly underway and with the continued
support and rapidly growing enthusiasm of medical communities worldwide, we
look forward to building on the noteworthy sales increases achieved in the
last financial year.'



For further information, please contact:-



Deltex Medical Group plc

[phone]

Kemp Coady, Chief Executive Officer

Ewan Phillips, Chief Financial Officer



Financial Dynamics

[phone]

Sarah Mehanna/Andrew Dowler



Notes to Editors:-



*       Deltex Medical manufactures and markets the CardioQ, a
non-invasive cardiac function monitor used in operating theatres, intensive
care units and Accident and Emergency Departments.  The CardioQ provides
doctors with 'beat-to-beat' information on how efficiently the heart is
transporting oxygen-carrying blood to the body's organs and how well patient
fluid levels are maintained.  In addition, the monitor provides doctors with
therapeutic guidance towards necessary treatment, such as drug administration,
and immediate feedback on the effects of such treatment.



*       More than 70 clinical abstracts and articles have been published
relating to Deltex Medical's oesophageal Doppler technology.  Several outcome
studies using this technology have shown that use of the monitor can reduce
post-operative morbidity and shorten the length of hospital stay by over 30
per cent.  Deltex Medical believes the potential worldwide market for the
CardioQ and its accompanying probes exceeds USD 1 billion per annum.