Re Agreement

Press Release 19 September 2005 Surgical Innovations Group plc Agreement with Rolls-Royce for aero engine inspection technology Surgical Innovations Group plc ('Surgical') ('AIM: SUN'), the designer and manufacturer of innovative surgical devices, is pleased to announce that it has signed an agreement with Rolls-Royce plc to develop instruments for use in the repair, overhaul and maintenance of aero engines. Surgical's design team, working in conjunction with Rolls-Royce engineers, has designed and developed patented inspection devices which incorporate advanced surgical instrument technology. These devices facilitate access to locations that are three-dimensionally displaced from the original entry point, enabling the inspection of internal components of an engine whilst it is installed onthe aircraft. This obviates the need to strip the engine down, in the same way that keyhole surgery eliminates the need to open up the body. Surgical plans to support up to five projects a year. Each project undertaken will be for the design of an instrument for a specific procedure on a particular engine. Over the course of the agreement, revenue will be generated by the design process and device sales resulting from each project. In addition, Surgical will receive £800,000 over the ten-year agreement period for licensing fees and access to technology. Half of this revenue should be received within two years, with the remainder being received via annual payments. Commenting on the agreement, Doug Liversidge CBE, Chairman of Surgical Innovations Group plc, said: 'Our agreement with Rolls-Royce represents a significant and innovative step forward for Surgical Innovations. The strength of our design team is enabling us to adapt our technologies for use in other industries.' In addition to aero engines, Surgical is actively seeking significant partnerships in the airframe, energy and nuclear, petrochemical and offshore sectors. For further information: Surgical Innovations Group plc Doug Liversidge CBE, Chairman Tel: +44 (0) 779 889 2918 Stuart Moran, Technical Director Tel: +44 (0) 771 561 2064 stuart.moran@surginno.co.uk www.sigroupplc.com Westhouse Securities Tim Feather Tel: +44 (0) 161 838 9140 tim.feather@westhousesecurities.com www.westhousesecurities.com Media enquiries: Abchurch Sarah Hollins Tel: +44 (0) 113 203 1340 Justin Heath www.abchurch-group.com sarah.hollins@abchurch-group.com NOTES TO EDITORS Surgical Innovations Group plc Surgical Innovations Group plc was formed in 1998 through a merger of Haemocell plc and Surgical Innovations Limited. Headquartered in Leeds, the Group employs over 40 people and specialises in two key areas:- * Autologous Blood Transfusion (ABT) Products for recycling patients' own blood. * Minimally Invasive Surgery (MIS) Products used in 'keyhole' surgery, more accurately known as laparoscopic surgery. For the year ended 31 December 2004, Group turnover increased to £3.03m (£ 2.75m) with a pre-tax profit to £174,000 compared to £136,000 in the previous year. Rolls-Royce plc Rolls-Royce operates in four global markets - civil aerospace, defence aerospace, marine and energy. It is investing in technology and capability that can be exploited in each of these sectors to create a competitive range of products. The success of these products is demonstrated by the company's rapid and substantial gains in market share over recent years. The Company now has a total of 54,000 gas turbines in service worldwide. Rolls-Royce has a broad customer base.
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