Trading Update

Deltex Medical Group PLC
12 January 2006


                            Deltex Medical Group plc

              Pre-close update on the year ended 31 December 2005


12 January 2006 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 2005.



During 2005 the Company made significant progress towards its goal of
establishing the use of its CardioQTM  system as a standard of care in the
monitoring and management of patients undergoing major surgery. As a result, the
directors anticipate that sales for the year will be in excess of £3.0 million
which is within the range of market expectations.



In the UK, the number of doctors wanting to use Deltex Medical's technology
continued to grow rapidly as did the number of clinical settings in which the
CardioQ system has been shown to be both cost effective and clinically
beneficial to the patients doctors are treating.  Sales continued to grow
steadily in the UK, although at a far slower rate than clinical demand due
mostly to the very difficult financial management challenges facing many NHS
hospitals.   Over 80% of the growth in UK sales came from probe sales and
maintenance cover.



In the middle of the year, and somewhat later than originally anticipated, the
Improving Surgical Outcomes Group (ISOG) published a pamphlet outlining a range
of proposals for improving surgical patient care in the UK that have at their
heart the routine use of haemodynamic optimisation to reduce complications and
hospital stay. ISOG, an independent group of leading anaesthetists, intensivists
and surgeons, enjoys widespread support and is working with policy makers,
health service managers and industry to achieve its aims.



The Company has been working closely with a group of surgeons in northern Europe
and the UK who are leading the world in improving the quality of large bowel
surgery, primarily in cancer patients, through the Enhanced Recovery After
Surgery (ERAS) project. A number of surgeons that follow the ERAS approach have
asked that their patients be treated using the CardioQ following presentation of
excellent results in these patients by surgeons from the Freeman Hospital in
Newcastle. It is hoped that haemodynamic optimisation will become established as
a standard element of the ERAS approach in the future.



In the US, sales of CardioQ monitors were significantly ahead of prior years and
included the purchase of four units by the William Beaumont Army Hospital in El
Paso, Texas for use in the intensive care unit and in patients undergoing
elective or emergency surgery in the operating room. These sales and the
increasing awareness of the need for better, earlier and safer haemodynamic
monitoring in the US perhaps represent the first signs of real growth in this
market.



In Europe, the Company has been working with a leading French doctor to develop
the protocol for the first multi-centred, randomised clinical trial into the
effects of haemodynamic optimisation, using the CardioQ, in patients undergoing
surgery for repair of a fractured hip. This clinical trial, which has been
approved by the French authorities, will be the first to treat sufficient
patients to show an impact on death rates. Patient enrolment is scheduled to
start in the second quarter of 2006.



The sale of three of the Company's wholly non-invasive monitor, the SupraQTM,
to the Medway Hospital in Gillingham marks the successful completion of the
first phase of this research and development project. The Company will be
working closely with doctors at the Medway Hospital to undertake further
clinical research using these devices and as part of the second phase of
development work that will lead to a second-generation system for mass-market
use.



Actual cash consumption in the second half of the year was, as expected,
significantly lower than at any time in the Company's history. The Directors
believe that the Company has sufficient cash resources to see it through to
profitability.



Nigel Keen, Deltex Medical's Chairman, commented:



'Early in 2005 we configured the Company to ensure that we would have sufficient
cash resources available to reach profitability, irrespective of the ability of
doctors in our home market to secure the funding they need to purchase our
products. Given the situation facing the UK NHS, that decision has proved to be
prudent. Nevertheless, we have seen good progress this year, with those doctors
that have ready access to CardioQs using them on more and more patients as user
confidence and experience grows.



'There are early and encouraging signs real progress in a number of European
countries where we have not long had a presence and in the US market too. I look
forward to seeing further progress towards our goals in 2006.'





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]
John Gilbert                                     [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