Final Results

NMT Group PLC
26 April 2005                                                 


26 April 2005
                                 NMT GROUP PLC

                  Preliminary Results for the year ended 31 December 2004

NMT Group PLC ('NMT') announces its Preliminary Results for the year ended 31
December 2004:

   • Group focusing on developing commercial licensing opportunities.


   • Negotiations continuing with party in Far East for the 2-G safety
    syringe, following signature of the letter of intent.


   • Discussions continuing with pharmaceutical companies on the Safety
     Needle Unit.


   • Re-organisation of Company completed.


   • A loss before interest of £2.2m (2003: £16.9m).


   • Cash balances of £7.0m (£12.8m) - in line with expectations.


Tony Fletcher, Chairman NMT Group PLC said:
'Progress has been made over the last twelve months, particularly with the
signature of the letter of intent for the license to manufacture and distribute
2-G safety syringes.
Clearly, this remains a critical time for the Group.

Every effort is being made to conclude the current negotiations but it is
essential that the Group wins a significant contract shortly in order to secure
its long-term future.

Given the Group's strong cash position and the significant nature of the
contracts under negotiation, the Board believes that its present best course of
action is to pursue these contracts to an ultimate conclusion in the coming
months'
.
Enquiries:
Tony Fletcher, Chairman - NMT Group PLC Tel: [phone]
Gerard Cassels, Company Secretary - NMT Group PLC Tel:  [phone]
Gordon Beattie - Beattie Communications Tel: [phone]

Chairman's Statement

Following the transition into a licensing and development business at the
beginning of 2004, the Group's main activities have been focussed on developing
appropriate commercial opportunities for the 2nd Generation (2-G) retractable
safety syringe and the Safety Needle Unit.
As reported in the 2004 Interim Statement, discussions have taken place with a
number of parties in the Far East to secure a licensing agreement for the
manufacture and distribution of the 2-G safety syringe. This resulted in the
announcement in January 2005 that the Group had signed a letter of intent with
one of these parties.

The letter of intent was also co-signed by a number of suppliers of capital
equipment, who have been working closely with the Group to supply the
prospective customer with a turn-key package for a new dedicated manufacturing
operation. The customer sought the Group's assistance in the selection of
manufacturing equipment suppliers for suitable tooling and automated assembly
equipment.

The letter of intent provides the Group with an initial licensing fee, phased
over agreed project milestones, and a unit royalty thereafter. The size of the
potential contract is significant.

Negotiations are continuing with formal tendering for the supply of capital
equipment currently taking place. The agreement of satisfactory commercial terms
by all parties will be required for the project to proceed. A further
announcement will be made when contractual negotiations have been concluded.

The Group has previously reported that it has been in discussion with three
pharmaceutical companies for the license to manufacture and distribute its
Safety Needle Unit in specific pre-fill syringe drug delivery applications. The
company with the smallest potential application in volume terms has opted to
proceed with an alternative off-the-shelf 'active' device. To date, we have been
unable to secure agreement with the other two parties, due to delay in their
decisions on how to proceed. Although we remain in discussion with both
companies, it now appears that commercial availability of the Safety Needle Unit
is unlikely to be required before 2007.

Results

An operating loss before interest of £2.2m (2003: £16.9m) comprised of an
operating loss on continuing activities of £1.4m (2003: £1.6m) and a loss on
discontinued activities of £0.8m (2003: £15.3m),the loss on discontinued
activities related principally to the settlement of the law suit with
Retractable Technologies Inc. Interest income and taxation resulted in a loss
after tax of £1.7m (2003: £16.5m).

Net cash inflow from operating activities was £0.2m (2003: £1.8m outflow), which
comprised of a net cash outflow from continuing operations of £1.2m (2003:
£1.6m), offset by a cash inflow from discontinued operations of £1.4m (2003:
£0.2m outflow). Utilisation of re-organisation provisions amounted to a cash
outflow of £6.2m, which matched the outstanding provision at 31 December 2003 of
£6.3m.

Cash balances at the year end of £7.0m (2003: £12.8m) were in line with
expectations.

Re-organisation

The re-organisation was completed in October 2004 when the manufacturing
facility at Oakbank Park was vacated, following disposal of the manufacturing
equipment and the completion of re-instatement work to the premises. The
re-organisation provision, which was made in the 2003 accounts, has been
substantially utilised and the balance of £0.1m released.

Board and Management

Roy Smith, Chief Executive and Gerard Cassels, Group Finance Director left the
Group in April and July 2004 respectively, although Gerard is continuing to act
as Company Secretary on a part-time basis. I thank both of them for their
contribution to the Group.

With the slimmer management team and in order to allow Graham Crowther, Chief
Executive, to concentrate on establishing the new development and licensing
business, I retained certain executive responsibilities during the year,
principally relating to the re-organisation, investor relations and corporate
affairs.

To further strengthen Corporate Governance, the Directors plan to appoint an
additional non-executive director to the Board, once the medium-term future of
the Group can be assured through the attainment of a significant licensing
contract.

Share Capital Consolidation

A special resolution was approved at the Extraordinary General Meeting, held on
3rd November 2004, to consolidate the Group's ordinary share capital to 1 new
ordinary share of £4 for every 100 shares of 4 pence in issue. The total number
of ordinary shares in issue now amounts to 8,711,000 shares.

Outlook

Clearly this is a critical time for the Group.

Whilst every effort is being made to conclude the current negotiations, I would
emphasize to shareholders that it is essential that the Group wins a significant
contract shortly in order to secure its long-term future.

Due to the long lead times of the contractual processes in the markets targeted
by the Group's safety needle products, the Board presently sees little
likelihood of obtaining additional business which will contribute significantly
to profitability in the next two years, other than from contracts currently
under active negotiation.

Failure to achieve success in securing a major contract will result in the Board
considering alternative strategies to maximise the value of the Group's
financial assets.

However, given the Group's strong cash position and the significant nature of
the contracts under negotiation, the Board believes that its present best course
of action is to pursue these contracts to an ultimate conclusion in the coming
months.

Tony Fletcher
Chairman.




Operating and Financial Review

Operating Review

Restructuring into a development and licensing business was completed during the
year. Whilst minimising cash burn, the Group focused on commercialising its
range of safety needle devices, based on its patented automatic needle
retraction and passive needle re-sheathing technology.

Following the cessation of manufacturing at Oakbank Park, the new organisation
of 10 people relocated to a much smaller office and laboratory facility at Deer
Park, Livingston in June 2004.

Design and Development

In spite of the disruption caused by the relocation, our design and development
team continued to make excellent progress on the Safety Needle Unit to ensure
that 'proof of principle' status was achieved on schedule. In-house testing
together with independent marketing trials, have proven that the latest devices
deliver precisely what our market research indicates clients require.
Applications have been made for further patents relating to improved design
features.

No additional development resources were committed to the 2nd Generation (2-G)
retractable safety syringe until a licensing partner had been identified,
although sales and marketing efforts continued unabated. Industry recognition
for the plastics technology built into the 2-G safety syringe was recognised
with a UK Plastics Industry Award for Technical Innovation.

Safety Needle Unit

Our commercial strategy for the Safety Needle Unit remained focused on securing
licensing contracts, with fixed volumes and pricing being agreed, prior to
committing capital investment.

Discussions have taken place with over 40 prospective customers in the
pharmaceutical sector regarding the sale and licensing of the Safety Needle Unit
for pre-fill syringe drug delivery. The importance of safety devices is widely
seen by pharmaceutical companies as offering a competitive advantage. However
the dynamics of change are slow and whilst feedback has been positive, long lead
times appear to be prevalent.

Advanced discussions for the commercial supply of Safety Needle Units took place
with three pharmaceutical companies in the latter part of 2004. Detailed
designs, customised to relevant customer requirements, were completed and
prototype products supplied. Whilst one of these potential customers opted for
an off-the-shelf 'active' safety needle device, the two others remain in active
discussions with us.

Product was assembled for one of these pharmaceutical companies to carry out a
marketing trial in the US and several European countries. The trial, which
involved one other competitor, was completed in mid-February 2005. Whilst
feedback on the NMT product has been good, a decision on which product to adopt
is still awaited from the pharmaceutical company. They have however indicated
that they would now be unlikely to require commercial deliveries before 2007 and
a decision on how to proceed would be delayed accordingly.

The Group exhibited in January 2005 at PharmaPack in Paris, its first
pharmaceutical industry exhibition. Its products were well received, with
enquiries taken from new potential pharmaceutical customers. Initial meetings
with a number of these pharmaceutical companies have already taken place.

2nd Generation Safety Syringe

During 2002 and 2003, the Group pursued several sales and marketing
opportunities in the US and Europe for its 2-G safety syringe, but found that
little interest was shown by large medical device companies. The reality was,
and still is, that the market penetration for retractable safety syringe devices
remains low in Western healthcare organisations.

Without legislation in place, and without it being rigorously enforced, it is
highly unlikely that this situation is likely to change in the foreseeable
future. Therefore NMT decided to explore other markets and in particular the Far
East, where discussions have been taking place with potential partners.

The Group's objective is to license the manufacture and distribution of syringes
to third parties, either on a global basis or by individual territory, with a
license fee and a royalty structure negotiated to suit each individual
requirement. This strategy has the advantage of minimal capital investment for
NMT, whilst providing a revenue stream going forward on future sales.

Discussions with a number of potential partners reached an advanced stage during
2004 and negotiations with two organisations continued into 2005, resulting in a
letter of intent to manufacture and market the 2-G safety syringe being signed
with one of the organisations in January.

The subsequent contractual process of the overall project is proving to be
lengthy and complex, due to its size and the involvement of other companies in
the supply of capital equipment. Every effort is being directed to securing a
legally-binding licensing agreement as soon as practicable.

Reorganisation

The reorganisation of the Group's activities is complete. The manufacturing
facility at Oakbank Park has been vacated, with part of the facility being
assigned to a new tenant and agreement secured with the landlord to terminate
the portion of the outstanding lease in respect of the remainder of the
building. Remedial and re-instatement work to the premises was completed in
October 2004.

Graham Crowther
Chief Executive



FINANCIAL REVIEW

Operating Results

Following the announcement in 2003 of the closure of the Group's manufacturing
operations the Group focused on two main activities: finalisation of the closure
of the discontinued business and developing the continuing business, which
comprises the core design and development business.
The operating loss for the year before interest and tax was £2.2m (2003:
£16.9m), split between the loss on continuing business of £1.4m (2003:£1.6m),
and discontinued operations of £0.8m (2003: £15.3m).

Continuing operations

The loss on the continuing business was £1.4m (2003: £1.6m), representing
largely the personnel and administration costs of the restructured company.

Discontinued operations

The loss on discontinued operations relating to the manufacturing activities was
£0.8m and compares to a corresponding £15.3m loss after exceptionals in the
previous year. The Group incurred £0.6m of exceptional charges in the year
largely relating to the lawsuit filed by Retractable Technologies Inc (RTI) in
2002, which was resolved in April 2004 by out of court settlement. The
settlement comprised the payment of £0.6m and admission of non-willful
infringement of RTI patents.
After net interest receivable of £0.4m (2003: £0.4m) the loss for the financial
year was £1.7m
(2003: £16.5m).

Financial Position and Cashflow

The Group's net cash at the end of the financial year was £7m, a decrease of
£5.8m for the period. The majority of the cash outflow related to settlement of
the December 2003 re-organisation liabilities, which are now completed and the
RTI litigation exceptional charge. Cash outflow from continuing operations was
£1.2m (2003: £1.6m).

Taxation

The tax credit of £0.1m was related to Research and Development allowances in
the year and compares with the credit of £0.1m in the previous year which was
related to similar allowances for 2003.
No charge arose for the current year due to trading losses incurred. The Group
has significant unutilised tax trading losses available to carry forward against
future profits.

Treasury Policies

Treasury policies and significant treasury transactions are reviewed and
approved by the Board. The Group's aim is to secure returns in line with
prevailing market rates while minimising the risk of capital loss.

Financial Instruments

It is and has been the Group's policy that no speculation or trading in
financial instruments shall be undertaken.
The Group's financial instruments, which are defined as any contract that gives
rise to both a financial asset of one entity and a financial liability or equity
instrument of another entity, other than derivatives comprise:

   • Cash including deposits and foreign currency holdings
   • Debtors, creditors and accruals that arise directly from its trading
    operations

The Group uses these financial instruments to fund its operations and to provide
for commitments to future expenditure. The Group also enters into derivative
transactions, principally forward foreign currency contracts, the purpose of
which is to manage material transactional currency exposures.
The policies used by the Group to manage the risks arising from the Group's
financial instruments are outlined below. These policies are regularly reviewed
by the Board and have been applied consistently year on year. The numerical
disclosures detailed within the Financial Statements are representative of these
policies. Regular reports are provided to management and treasury operations are
subject to periodic review.
The main risks arising from financial instruments are liquidity risk, interest
rate risk and foreign currency risk.

Liquidity Risk

The Group's policy is to ensure continuity of funding. Funding is achieved
through a combination of equity and lease financing. It is policy to maintain
high flexibility on the liquidity of its funds, which are placed on deposit with
maturity periods not exceeding three months.

Interest Rate Risk

The Group finances its operations through a mix of equity and lease financing,
all in sterling. The Group's policy on financial liabilities is to obtain
finance at the best available market rate, fixed or floating, depending on
funding requirements.
The Group's policy on financial assets is to place surplus cash on deposit to
earn interest at optimum market rates, fixed for periods up to a maximum of 90
days.

Foreign Currency Risk

The Group also has potential transactional currency exposures that arise from
overseas sales, purchases and expenses. Group policy is to use forward foreign
currency contracts to eliminate the currency exposure arising on material
foreign currency purchase commitments that are known with reasonable certainty.
The duration of the contracts varies according to the timing of the underlying
transactions.


CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 December 2004
+--------------+----+-------+-+-------+---------+-+-------+----------+-+--------+
|              |    |       | |       |     2004| |       |          | |    2003|
|              |    |   Con-| |Discon-|    Total| |    Con|   Discon-| |   Total|
|              |    |tinuing| | tinued|    £'000| |tinuing|    tinued| |   £'000|
|              |    |  £'000| |  £'000|         | |  £'000|     £'000| |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |Note|       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Turnover      | 2  |      -| |      -| |      -| |      -| |  12,285| |  12,285|
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Cost of sales |    |      -| |      -| |      -| |      -| |(10,320)| |(10,320)|
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Gross profit  |    |      -| |      -| |      -| |      -| |   1,965| |   1,965|
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Distribution  |    |  (252)| |      -| |  (252)| |  (216)| |  (94)  | |   (310)|
|costs         |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Administration|    |(1,177)| |  (148)| |(1,325)| |(1,383)| |(2,744) | | (4,127)|
|expenses      |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Exceptional   | 3  |-      | |  (696)| |  (696)| |      -| |       -| |       -|
|administration|    |       | |       | |       | |       | |        | |        |
|expenses      |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Group         |    |(1,429)| |  (844)| |(2,273)| |(1,599)| |   (873)| | (2,472)|
|Operating Loss|    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Exceptional   | 3  |      -| |     73| |     73| |      -| |(14,476)| |(14,476)|
|items         |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Loss before   |    |(1,429)| |  (771)| |(2,200)| |(1,599)| |(15,349)| |(16,948)|
|interest      |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Interest      |    |    391| |      -| |    391| |    301| |     170| |     471|
|receivable and|    |       | |       | |       | |       | |        | |        |
|similar income|    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Interest      |    |      -| |      -| |      -| |      -| |    (72)| |    (72)|
|payable and   |    |       | |       | |       | |       | |        | |        |
|similar       |    |       | |       | |       | |       | |        | |        |
|charges       |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Loss on       |    |(1,038)| |  (771)| |(1,809)| |(1,298)| |(15,251)| |(16,549)|
|ordinary      |    |       | |       | |       | |       | |        | |        |
|activities    |    |       | |       | |       | |       | |        | |        |
|before        |    |       | |       | |       | |       | |        | |        |
|taxation      |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Taxation on   |    |     71| |      -| |     71| |     87| |       -| |      87|
|loss on       |    |       | |       | |       | |       | |        | |        |
|ordinary      |    |       | |       | |       | |       | |        | |        |
|activities    |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Loss for the  |    |  (967)| |  (771)| |(1,738)| |(1,211)| |(15,251)| |(16,462)|
|financial year|    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Loss per      |    |       | |       | |       | |       | |        | |        |
|ordinary share|    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Basic and     | 4  |(11.1)p| | (8.9)p| |(20.0)p| |(13.9)p| |(175.1)p| |(189.0)p|
|diluted       |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|Loss per      | 4  |(11.1)p| |(2.0)p | |(13.1)p| |(13.9)p| | (9.3)p | |(23.2)p |
|ordinary share|    |       | |       | |       | |       | |        | |        |
|before        |    |       | |       | |       | |       | |        | |        |
|Exceptional   |    |       | |       | |       | |       | |        | |        |
|items         |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+
|              |    |       | |       | |       | |       | |        | |        |
+--------------+----+-------+-+-------+-+-------+-+-------+-+--------+-+--------+

There is no difference between the loss on ordinary activities before taxation
and the loss for the year stated above and their historical cost equivalents.

BALANCE SHEETS
At 31 December 2004

                                  Group                   Company

                               2004         2003        2004         2003
                              £'000        £'000       £'000        £'000
Fixed assets
Tangible assets                 301          386         301          386

Current assets
Debtors                         232        3,157         232        3,043
Cash at bank and in           7,005       12,842       6,985       12,663
hand

                              7,237       15,999       7,217       15,706

Creditors: amounts
falling due
within one year               (279)      (1,018)       (259)        (999)

Net current assets            6,958       14,981       6,958       14,707

Total assets less             
current liabilities           7,259       15,367       7,259       15,093

Creditors: amounts
falling due
after more than one               -         (60)           -         (60)
year

Provisions for                    -      (6,310)           -      (6,310)
liabilities and
charges
Net assets                    7,259       8,997        7,259        8,723

Capital and reserves
Called up share              
capital                      37,187      37,187       37,187      37,187
Share premium                
account                      38,639      38,639       38,639      38,639
Profit and loss             (68,567)    (66,829)     (68,567)    (67,103)
account

Total shareholders'           7,259       8,997        7,259        8,723
equity funds

The Financial Statements on pages 8 to 13 were approved by the board of
directors on 25 April 2005 and were signed on its behalf by:
A.T. Fletcher
Director

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the year ended 31 December 2004
                                                     Group
                                                   2004         2003
                                                  £'000        £'000

Loss for the financial year                     (1,738)     (16,462)
Exchange adjustment on translation of net            
assets of subsidiary                                 -          688

Total recognised losses for the financial       
year                                            (1,738)     (15,774)


RECONCILIATION OF SHAREHOLDERS' FUNDS

For the year ended 31 December 2004
                                   Group                  Company

                               2004 ..      2003         2004      2003
                                 £'000     £'000        £'000     £'000
Loss for the financial year    (1,738)  (16,462)      (1,464)  (24,468)


Other recognised foreign             - 688                  -         -
exchange gains for the year
Total recognised losses for    (1,738)  (15,774)      (1,464)  (24,468)
the financial year
Share options - notional             -        37            -        37
cost of shares
Total movements during the     (1,738)  (15,737)      (1,464)  (24,431)
year
Shareholders' funds at 1         8,997    24,734        8,723    33,154
January
Shareholders' funds at 31        7,259     8,997        7,259     8,723
December



CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2004

                                                      2004          2003
                                       Note          £'000         £'000

Net cash inflow/(outflow) from                        
operating activities                                   249       (1,785)
Net cash outflow - discontinued                     
business                                            (6,237)        (313)

Net cash outflow from operating                     
activities                                          (5,988)      (2,098)

Returns on investments and servicing
of finance
Interest received                                      418           539
Interest paid                                            -           (72)

Net cash inflow from returns on
investments and
servicing of finance                                   418           467

Taxation                                               195           114

Capital expenditure and financial
investment
Purchase of tangible fixed assets                      (5)         (439)

Cash outflow before management of
liquid
resources and financing                            (5,380)       (1,956)

Management of liquid resources
Cash returned from term deposit                      5,003        2,714

Cash(outflow)/before financing                        (377)         758

Financing
Finance lease - repayment of principal               (457)         (608)

Net cash outflow from financing                      (457)         (608)

(Decrease)/increase in cash in the                   
year                                                 (834)          150

NOTES TO THE FINANCIAL STATEMENTS

Basis of preparation

The financial information included within this Preliminary Statement has been
prepared on the basis of accounting policies consistent with those set out in
the Director's Report and Accounts for the year ended 31 December 2004. The
financial information on pages 8 to 13 was approved by the Board on 25 April
2005.

The information shown for the years ended 31 December 2004 and 31 December 2003
does not constitute statutory accounts within the meaning of Section 240 of the
Companies Act 1985 and has been extracted from the full accounts for the years
ended 31 December 2004 and 31 December 2003 respectively. The reports of the
auditors on those Accounts were unqualified and did not contain a Statement
under either Section 237 (2) or Section 237 (3) of the Companies Act 1985. The
Accounts for the year ended 31 December 2003 have been filed with the Registrar
of Companies. The Accounts for the year ended 31 December 2004 will be delivered
to the Registrar of Companies in due course.

2. Segmental analysis
                         Turnover          Operating Loss       Net assets
                         2004      2003       2004       2003   2004     2003
                        £'000     £'000      £'000      £'000  £'000    £'000
By origin
Europe                      -         -    (1,429)    (1,599)  7,259    8,997
Total continuing            -         -    (1,429)    (1,599)  7,259    8,997
operations

Europe                      -     6,961      (844)    (2,163)      -        -
United States               -     5,324          -      1,290      -        -
Total discontinued          -    12,285      (844)      (873)      -        -
operation
                            -    12,285                        7,259    8,997

Operating loss before exceptional items    (2,273)    (2,472)
Exceptional items (note 3)                     73          -
Group operating loss                       (2,200)    (2,472)
Loss on closure of discontinued                 -    (14,476)
business
Loss before interest                       (2,200)   (16,948)
Net interest                                  391        399

Loss before tax                            (1,809)   (16,549)

                               Turnover
                              2004      2003
                             £'000     £'000
By customer location
Europe                           -     6,961
United States                    -     5,324
Discontinued operation           -    12,285

3. Exceptional items

The following exceptional items have been reflected in the accounts for the year
ended 31 December 2004.

Exceptional administration expenses of £0.7m (2003:nil) relate to the resolution
of the lawsuit filed by Retractable Technologies Inc in April 2004 by out of
court settlement. The settlement comprised the payment of £0.6m and admission of
non-wilful infringement of RTI patents. In addition, a further £0.1m of
uninsured legal costs were incurred.

The exceptional item for the current year relates to the £0.1m release from the
December 2003 organisation provision. The charge in the prior year of £14.5m was
in relation to the closure of the 1st Generation syringe facility in Livingston.

4 Loss per ordinary share

Loss per ordinary share is calculated by dividing the loss attributable to
ordinary shareholders by the weighted average number of shares in issue.


                                                     2004           2003
                                                    £'000          £'000

Loss attributable to members of NMT Group           1,738         16,462
PLC

Exceptional items (note 3)                          (623)       (14,476)
Loss before exceptional item                        1,115          1,986

                                                     2004           2003

Weighted average number of ordinary shares      8,711,317      8,711,317
in issue

On 3 November 2004 shareholders approved a 100 for 1 share consolidation to New
Ordinary shares. The comparative weighted average number of shares has been
adjusted to reflect the consolidation.

The loss before exceptional items provides a more meaningful comparison of
business performance year on year.
As a result of losses incurred in 2004, the exercise of share options would not
have been dilutive and accordingly, the basic and diluted loss per share are the
same.





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