Final Results

Aortech International PLC
23 September 2005


For Immediate Release                                          23 September 2005

                           AorTech International plc

                          ('AorTech' or 'the Company')

                              Preliminary Results
                        for the year ended 31 March 2005


AorTech International plc (AIM: AOR), the Biomaterials Intellectual Property and
material manufacturing Company announces its Preliminary Results for the year
ended 31 March 2005.


Operational Highlights
     
•    Expansion of the Elast-Eon Master technology data base
•    Successful bench testing of formulations for spinal disc applications
•    Major internal developments in next generation breast implants to include
     • Validation of superiority of Elast-Eon for breast implant shell,
       particularly in comparison with silicone
     • Meeting with the FDA to assess the use of Elast-Eon in breast implants
     • Development of specific Elast-Eon formulations suitable for minimally
       invasive devices, injectable in situ cure and progress in defining the
       regulatory road map for the ultimate approval of this product
•    Development of form-stable, metal-free and ultra-low extractable gels
•    Support for client manufacturing as part of first human use
•    Renaming of the Company to AorTech Biomaterials plc - to be proposed at AGM


Financial Highlights
     
•    Loss After Tax for the year was £1,867,390. (2004: Profit £527,260)
•    Net cash position as at 31 March 2005 was £4,015,126 (2004: £5,968,200)


Commenting on the results, Frank Maguire, Chief Executive of AorTech said:

'Having come through a major refocus of the business, AorTech now has a number
of exciting products and applications based on Elast-Eon.  Our work to develop
the Masterfile for the FDA is a credit to our team as their commitment is now
being reflected in real commercial opportunities.

'We would like to thank our shareholders for their support during this time and
look forward to reporting further progress in all of our key projects over the
coming months.'


For further information please contact:

AorTech International plc                                      00 1 801 201 4336
Frank Maguire, Chief Executive

Buchanan Communications                                            020 7466 5000
Ben Willey, Lisa Baderoon, Rebecca Skye Dietrich


Notes to Editors:

AorTech International plc is a public limited company formed under the laws of
Scotland, UK and is traded on the Alternative Investment Market, a market
operated by the London Stock Exchange plc, under the trading symbol AOR.

Additional material concerning AorTech International is available on the
Company's website at www.aortech.com, or may be obtained by contacting the
Company's Investor Relations firm, Buchanan Communications Limited.


CHAIRMAN'S STATEMENT


RESULTS

The Company had turnover in the year ended 31 March 2005 of £136,958 (2004
£360,185), whilst operating expenses for the year were £2,189,908, some 13% less
than in the preceding year.  These expenses included development expenditure of
£653,896 and amortization of intangible fixed assets of £94,589.  The Loss on
Ordinary Activities Before Tax was £1,867,390 - some £417,833 more than in 2004
during which year the Company benefited from £552,856 of gains on exceptional
items.

Loss After tax for the year was £1,867,390.  This compares with a Profit After
Tax of £527,260 during the year ended 31 March 2004 following receipt of
£1,976,817 in tax credits in respect of development work during earlier years.

The cash position as at 31 March 2005 was £4,015,126 - some £1,953,074 less than
on the corresponding day in 2004.

In line with the resolution passed at the last Annual General Meeting, the Share
Premium Account has been cancelled, and this is reflected in the statutory
Accounts.


BUSINESS REVIEW AND ACTIVITIES

The progress made at AorTech in Financial Year 2005 is a story that began with
the vigorous turnaround of FY 2003 and the foundation building in the year 2004.
The turnaround comprised of a number of key strategic actions, including:
     
•    The appointment of new management
•    Termination of £30 million Becton Dickinson acquisition
•    Sale of the loss making heart valve business
•    Voluntary withdrawal of TruCCOMs from market
•    Sale of TruCCOMs intellectual property
•    Termination of in-house development of Tri-leaflet heart valve
•    Start up of Biomaterial licensing and supply business
•    A reduction in cash burn from £10m in FY 2003 to under £1m in 2004
•    Biomaterial technology licenses and supply agreements executed June 2003.


Having accomplished these changes, management developed a strategy for the new
business. During the foundation year of 2004, the business:
          
•    generated 17 new materials evaluation programmes reflecting the expansion 
     of Elast-Eon platform into new areas
•    progressed 2 step-out projects through to advanced stages of product 
     development
•    increased its scientific profile through World Biomaterials Congress
     presentations
•    provided support for key client relationships, resulting from dramatic 
     improvements in quality of materials achieved through process optimisation 
     to facilitate higher yields in device production
•    submitted its first master file to FDA
•    developed a supplier management programme and the expansion of the supplier 
     base                                                 
•    successfully completed research programmes on drug-eluting stents and 
     spinal discs
•    achieved advances in breast implant potential
•    succeeded in developing the Melbourne manufacturing and technology centre 
     into a key strategic asset.

Frank Maguire and I would like to acknowledge the contributions made by Laurie
Rostron, Chairman of the Company until May 2005, to the turnaround and
foundation phases of this reincarnated business. His guidance and steady hand
were instrumental in setting this new business off in a positive direction.

The accomplishments of the past year reflect the beginnings of commercial as
well as strategic, regulatory and technical progress.  Milestones of note
include:
     
•    Expansion of the Elast-Eon Master technology data base
•    Maintenance of high quality and stable supply of Elast-Eon
•    Development of new abrasion resistant, low creep grades for orthopaedic 
     applications, in particular the rapidly growing spinal disc segment
•    Major internal developments in next generation breast implants that address 
     material selection and preliminary toxicity and biostability results
•    Validation of superiority of Elast-Eon for breast implant shell,
     particularly in comparison with silicone
•    Completion of sterilization feasibility for the Elast-Eon breast implant
•    Meeting with the FDA to assess the use of Elast-Eon in breast implants
•    Development of specific Elast-Eon formulations suitable for minimally
     invasive devices, injectable in situ cure and progress in defining the
     regulatory road map for the ultimate approval of this product
•    Development of form-stable, metal-free and ultra-low extractable gels
•    Successful bench testing of formulations for spinal disc applications
•    Support for client manufacturing as part of first human use project


OUTLOOK

The Company believes that first human use of Elast-Eon and the generation of the
first royalty income for the business will occur within one year. The effect
that this event will have on the biomaterial licensing and supply business will
be positive and manifest itself along with steadily growing revenue streams - in
terms of an increasing number of licensing deals and projects and the individual
value of these projects to AorTech.

It will be the result of the consistent diligent and expert work by all of our
valued employees.

It will be the point in time where the work of the past three years can be
acknowledged and the 'new' AorTech will have been launched.  After considering
the feedback from the investment community and a number of key shareholders, the
Board has reached a decision to propose a re-naming of the Company to AorTech
Biomaterials plc. This will be subject to approval at the Annual General Meeting
of the Company.

I am delighted at the progress we have made with both our 'generation 5', safer
surgical type breast implant and the breakthroughs we are experiencing with the
development of a true minimally invasive breast implant.

The AorTech Board is looking forward to increasingly positive commercial results
in the coming year.  There are a number of new applications, licensees and the
prospect of clinical use of Elast-Eon for a number of long-term implants where
there is a high demand for extraordinary fatigue performance, abrasion
resistance, blood compatibility and general physical strength.


BOARD CHANGES

We announced at the end of October 2004 that Ian Cameron was stepping down from
his position as Finance Director but would remain as a Non Executive Director
and Company Secretary in the short term.  Ian retired from the Board with effect
from 20th December 2004.  Having contributed substantially to AorTech during his
six years with the Company.   He has been succeeded as Company Secretary by
David Parsons, ACIS.

In May 2005, my predecessor as Chairman, Laurie Rostron, and Peter Gibson,
Non-Executive Director of the Company, retired from the Board.  Earlier in this
Statement I have acknowledged the contribution made by Laurie Rostron, but I
would also take this opportunity to express my warm thanks to both colleagues
for their considerable efforts and input during a difficult, transitional period
for the Company.

In May 2005, we also announced the appointment of Dr Stuart Rollason as a
Non-Executive Director. Dr Rollason brings a wealth of experience, both medical
and corporate, to the Board and it has become clear that his input will prove of
much value in the months ahead.


AUDITORS

The Company's current auditors, PricewaterhouseCoopers LLP, have resigned with
effect from the forthcoming Annual General Meeting.  PricewaterhouseCoopers LLP
have confirmed to us that there are no circumstances connected with their
resignation that they consider should be brought to the attention of members.
Grant Thornton UK LLP have confirmed that they would be pleased to accept
appointment as the Company's auditors.

I am grateful to the partners and staff of PricewaterhouseCoopers LLP for the
professionalism and services they have provided during their tenure.


CONCLUSION

The task ahead remains challenging, but I believe that the credibility attained
from the successful completion of the long, arduous process of qualifying
Elast-Eon for human use will provide a substantive boost for our heart valve and
breast implant projects with investors, regulators and potential industry
partners.

My sincere thanks go to Frank Maguire, and his highly skilled team, for their
considerable achievements, efforts and support during the past year.


Jon Pither
Chairman
23 September 2005


CONSOLIDATED PROFIT AND LOSS ACCOUNT
 for the year ended 31 March 2005

                                                  Notes                 2005               2004
                                                                           £                  £

Turnover                                            2                136,958            360,185

Cost of Sales                                       3               (31,339)           (30,649)

Gross Profit                                                         105,619            329,536

Net operating expenses                              3            (2,189,908)        (2,527,045)
     Net operating expenses include:
     Development expenditure                                       (653,896)          (559,032)
     Amortisation of intangible fixed assets                        (94,589)           (97,863)

Group operating loss                                3            (2,084,289)        (2,197,509)

Exceptional items                                   4                      -            552,856

Loss on ordinary activities before interest                      (2,084,289)        (1,644,653)
Interest receivable                                                  216,899            195,096

Loss on ordinary activities before taxation                      (1,867,390)        (1,449,557)
Taxation                                            5                      -          1,976,817

(Loss)/Profit for the financial year                             (1,867,390)            527,260

(Loss)/Profit per ordinary share
Basic                                               6               (49.01p)             13.84p
Diluted                                                             (49.01p)             13.84p

There is no difference between the losses stated above and their historical cost 
equivalent.
All results are derived from continuing operations.


STATEMENT OF TOTAL RECOGNISED GAINS/(LOSSES)
for the year ended 31 March 2005
                                                                         2005                2004
                                                                            £                   £

(Loss)/Profit for the financial year                              (1,867,390)             527,260
Currency translation differences arising on consolidation            (45,215)             130,024

Total (losses)/gains recognised since last annual report          (1,912,605)             657,284



BALANCE SHEET
 as at 31 March 2005

                                                                2005                     2004
Fixed assets
Intangible assets                                          1,449,366                1,565,806
Tangible assets                                              189,678                  235,608
Investment in subsidiary undertakings                              -                        -

                                                           1,639,044                1,801,414
Current assets
Stocks                                                        68,852                   48,853
Debtors                                                      278,948                  185,848
Cash at bank                                               4,015,126                5,968,200

                                                           4,362,926                6,202,901

Creditors: amounts falling due within one year             (348,460)                (438,200)

Net current assets                                         4,014,466                5,764,701
Total assets less current liabilities                      5,653,510                7,566,115
Net assets                                                 5,653,510                7,566,115

Capital and reserves
Called up share capital                                    9,525,695                9,525,695
Share premium account                                              -               63,359,594
Other reserve                                            (2,003,143)              (2,003,143)
Profit & Loss account                                    (1,869,042)             (63,316,031)
Equity shareholders' funds                                 5,653,510                7,566,115



CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March 2005

                                                           Note          2005             2004
                                                                            £                £
Net cash outflow from operating activities
Net cash outflow before exceptional items                    7    (2,139,103)      (1,898,890)
                                                                  (2,139,103)      (1,898,890)
Outflow related to exceptional items                                        -      (1,335,862)

Net cash outflow from operating activities                        (2,139,103)      (3,234,752)

Returns on investment and servicing of finance
Interest received                                                     216,899          188,359

Taxation
Research and development tax credits received                               -        2,075,716

Capital expenditure and financial investment
Purchase of intangible fixed assets                                         -                -
Purchase of tangible fixed assets                                    (28,000)         (14,908)
Sale of tangible fixed assets                                               -          136,440

Net cash inflow/(outflow) from capital expenditure and               (28,000)          121,532
financial investment

Disposals
Disposal of commercial valve operations                                     -         (50,000)

Cash outflow before management of liquid resources and            (1,950,204)        (899,145)
financing

Management of liquid resources
Cash released from short term deposit                               1,994,364          734,983

Increase/(decrease) in cash in the year                                44,160        (164,162)


Note 1.
The financial statements for AorTech International plc have been approved but
have yet to be signed for the year ended 31 March 2005.  The financial
information set out in the announcement does not constitute the Company's
statutory Accounts for that year nor for the year ended 31 March 2004.  The
financial information for the year ended 31 March 2004 is derived from the
statutory accounts for that year which have been delivered to the Registrar of
Companies.  The auditors reported on those Accounts; their report was
unqualified and did not contain a statement under either Section 237 (2) or
Section (3) of the Companies Act 1985.  The statutory Accounts for the year
ended 31 March 2005 have been finalised on the basis of the financial
information presented by the Directors in this preliminary announcement and will
be delivered to the Registrar of Companies following the Company's Annual
General Meeting.

Note 2  Segmental analysis by class of business and geographical area
(a) Class of business - The Group operates one class of business

(b) Geographical area - The analysis by geographical area of the Group's 
turnover is set out below:
                                                      2005                       2004
                                              sales by       sales by    sales by       sales by
                                           destination         origin destination         origin
                                                     £              £           £              £
Geographical segment:
United Kingdom                                  13,024              -           -              -
Rest of Europe                                       -              -           -              -
Rest of World                                  123,934        136,958     360,185        360,185
                                               136,958        136,958     360,185        360,185

Note 3 - Cost of sales, gross profit, selling and marketing costs and 
administrative expenses
                                                                 2005                       2004
                                                                    £                          £

Turnover                                                      136,958                    360,185
Cost of Sales                                                (31,339)                   (30,649)
Gross Profit                                                  105,619                    329,536

Selling and marketing costs                                 (185,384)                  (296,492)

Administrative expenses:
Development expenditure                                     (653,896)                  (559,032)
Amortisation of intangible fixed assets                      (94,589)                   (97,863)
Other                                                     (1,256,039)                (1,573,658)

Total administrative expenses                             (2,004,524)                (2,230,553)

Net operating expenses                                    (2,189,908)                (2,527,045)

Group operating loss                                      (2,084,289)                (2,197,509)



Note 4 - exceptional items
                                                                 2005                       2004
                                                                (nil)                          £

Gain on termination of truCCOMS operations                                               307,660
Gain on disposal of commercial valve                                                     111,581
operations
Fundamental restructuring costs                                                          133,615
                                                                                         552,856
Cash consideration                                                                        87,660
held in Escrow for 12 months                                                             220,000
                                                                                         307,660
Gain on disposal                                                                         307,660

The gain during the year ended 31 March 2004 for fundamental restructuring costs
arose from the overprovision of estimated costs at 31 March 2003

Note 5 - Taxation
The tax credit of £1,976,817 in 2004 relates to research and development credits
received in respect of expenditure incurred in previous years.

Note 6 - (Loss) / Profit on Ordinary Share
The basic (loss) per ordinary share is calculated on the loss of the Group of
£1,867,390 (2004: profit of £527,260) and on 3,810,278 (2004 : 3,810,278) equity
shares, being the weighted average number of shares deemed to be in issue.  The
exercise of share options would not have been dilutive and accordingly the basic
and diluted (loss)/profit per share are the same.


Note 7 - Net cash outflow from operating activities
Net cash outflow from operating activities for the year to 31 March 2004
included expenditure of £636,518 which was not incurred in the current year.



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