Re Agreement

RNS Number : 2410O

AorTech International PLC

09 October 2012

AorTech International plc

AorTech lnternational plc alleges material breach of contract by division of St Jude Medical

Shareholders are aware that a principal commercial contract of AorTech International pic ("AorTech" or the "Company") and its subsidiaries (''the AorTech Group") is an agreement (the "Agreement") for the license and supply of AorTech's proprietary materials to Pacesetter Inc. dba St. Jude Medical Cardiac Rhythm Management Division ("St. Jude").

AorTech and its subsidiaries have served on St Jude a Rectification Notice which asserts material breaches by St. Jude under the Agreement and related agreements. To the extent the asserted breaches are capable of cure, the Rectification Notice provides for a 30 day Rectification Period for St. Jude to cure. The Board is informed and believes that the material breaches are likely not capable of cure.

During the Rectification Period, the AorTech Group will continue to meet its obligations to St Jude under the Agreement. If St. Jude's breaches have not been cured within the Rectification Period, the AorTech Group is entitled under the Agreement at its absolute discretion to terminate the Agreement, including all licenses and other rights for St. Jude to use AorTech's materials or intellectual property, other than use of materials already held by St. Jude. The Board has voted to terminate the Agreement if the material breaches are not cured. If termination occurs St Jude will continue to own the necessary assets to manufacture polymers but will no longer have the rights in the Company's intellectual property and know how to manufacture the proprietary AorTech materials.

The material breaches of the AorTech Group's largest contract, the serving of the Rectification Notice, the Board's informed belief that the material breaches are likely not capable of cure and AorTech's decision to terminate the contract if the material breaches are not cured together constitute a significant development and as required by the AIM Rules, AorTech is making this notification without delay.