Trading Update

Deltex Medical Group PLC
05 January 2005



                            Deltex Medical Group plc


             Update on trading for the year ended 31 December 2004



5 January 2005: Deltex Medical Group plc ('Deltex Medical' or the 'Company'),
the AIM listed haemodynamic monitoring company, today announces an update on
progress in the year ended 31 December 2004.



As anticipated in the trading update issued on 17 December 2004, negotiations
with the 14 hospitals in the UK NHS which are planning to implement routine,
wide-scale use of the Company's products are still ongoing and were not
concluded prior to the year end.  As a result, the Directors anticipate that
sales for the year will be below market expectations at approximately £2.5
million compared to £3.1 million in 2003. The Company expects to reach a
successful conclusion with the majority of the 14 hospitals in the coming
months.  Discussions with other hospitals, as also outlined in the 17 December
announcement, are progressing as expected.



During 2004 the Company made significant progress in communicating the clinical,
economic and efficiency benefits of using its CardioQ(TM)  system to manage the
fluid status of patients undergoing moderate and major risk surgery. Of key
importance was the management-led audit undertaken at the Medway Maritime
Hospital NHS Trust ('Medway') demonstrating that routine use of the CardioQ
could substantially reduce average length of hospital stay across a broad range
of surgical procedures. The Medway audit provides the information required to
eliminate cost as the perceived objection to wide-scale, routine use of CardioQ
in the UK National Health Service ('NHS') as a standard of care.



The net cash position at the end of the year was £1,101,000. The Directors
believe the current level of cash is sufficient to see the Company to
profitability.



Nigel Keen, Deltex Medical's Chairman, commented:



'The Company has achieved great progress in developing and communicating its key
marketing messages, however, sales have been slower than anticipated. In large
part I believe this reflects the complexity of the decision-making process
inherent in healthcare systems across the world and especially in the UK NHS,
where wide-ranging and fundamental changes in funding are currently being
implemented.



'The high level of support from both doctors and hospital administrators in many
countries where the CardioQ system is sold leads me to believe that the Company
is well positioned to make haemodynamic optimisation using its products a
standard of care in key 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                                                 0207 831 3113
David Yates                               [e-mail]
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