Trading Statement

Deltex Medical Group PLC
16 December 2004

                            Deltex Medical Group plc


                                 Trading update


16 December 2004: Deltex Medical Group plc ('Deltex Medical' or the 'Company'),
the AIM listed haemodynamic monitoring company, today announces an update on
expected trading performance in advance of the preliminary announcement of its
results for the year ending 31 December 2004.

The Company has made considerable progress in raising awareness of the clinical
and economic benefits of routine haemodynamic optimisation using its CardioQ(TM)
system.  This progress has accelerated since 24 September 2004 when the Company
announced both the results of a new clinical study in Worthing and the results
of a post-procurement audit of wide-scale use of the CardioQ at the Medway
Maritime Hospital ('Medway').  Together with the significant body of clinical
evidence, these new results meant the Company could now demonstrate clearly to
both doctors and hospital administrators that using the CardioQ as a standard of
care delivers more cost effective, better quality of care for large numbers of
patients.

Our discussions in hospitals indicate that iincreasing numbers of anaesthetists,
surgeons and senior hospital managers have now recognised the importance of
implementing this change in the management of higher risk surgical patients. The
Company is currently working to conclude sales negotiations with 14 hospitals in
the UK National Health Service ('NHS') who are planning to implement routine,
wide-scale use of the Company's products.  The Company has already reached
agreement in principle with a further six NHS hospitals which they will work
with the Company towards wide-scale purchase of the Company's product(s),
subject to focused local evaluations scheduled to be undertaken in the first
quarter of 2005.  In addition clinicians at over 20 more NHS hospitals support
the adoption of CardioQ as a standard of care into priority uses of hospital
budgets in the NHS financial year beginning 1 April 2005.

In the USA, Deltex Medical has been working in partnership with the Veteran's
Administration (VA) Hospital in San Antonio to undertake a similar audit to that
concluded earlier in the year at Medway.  The doctors at this site have
demonstrated to their own satisfaction that routine haemodynamic optimisation
delivers the clinical benefits and length of stay improvements in the setting of
the VA system and have already begun to modify treatment protocols based on
their experience.  From 1 November 2004 haemodynamic optimisation was adopted as
a standard of care at the VA Hospital in San Antonio and requisitions have been
raised internally by the hospital to fund the increased numbers of monitors and
probes required to enable full implementation.  These requisitions are supported
by the hospital's senior administrators.

The Company is also working with its distributor partners in Europe to establish
'flagship' hospital-wide adoption sites in five countries.  These sites are
aiming to demonstrate over the first half of 2005 that the clinical, economic
and efficiency benefits demonstrated through the Medway post-procurement audit
can be achieved in their individual healthcare environments.

In order for the Company to report sales for the year ending 31 December 2004 in
line with current market expectations, it would be necessary for the majority of
the fifteen identified hospitals in the UK and USA to complete their internal
procurement processes and place an order with the Company in time for delivery
before 31 December.  The Directors now consider it likely that several or
possibly even all of these hospitals will be unable to meet the timeframes which
the Company has proposed and that the Company's sales for the year will be lower
than market expectations by corresponding amounts.  However, the Directors
remain confident that these orders will be forthcoming in the first half of
2005.  The Directors continue to believe that the Company is well positioned to
make haemodynamic optimisation using its products a standard of care in a number
of major markets.




For further information, please contact:-

Deltex Medical Group plc                                           01243 774 837
Nigel Keen, Chairman                  [e-mail]
Andy Hill, Chief Executive            [e-mail]
Ewan Phillips, Finance Director       [e-mail]

Financial Dynamics
David Yates                           [e-mail]           0207 831 3113
Lucy Briggs                           [e-mail]



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