Interim Results

NMT GROUP PLC
14 September 1999


                                 NMT GROUP PLC
             Interim results for the six months ended 30 June 1999

NMT Group PLC ('NMT'), the manufacturer of retractable devices to prevent
needlestick injury, announces its interim results for the six months ended 30
June 1999.

Key Points

-    Sales levels running six months behind schedule, but NMT anticipates
     moving into profitability during year 2000
     
-    Revenues in the period of £43,000, with a loss of £2.9 million.  Cash of
     £15.4 million at period end

-    Successful Placing and Open Offer raised £16 million

-    Additional manufacturing capacity ordered and facilities expansion
     planned

-    ISO 9001 and EN 46001 accreditation achieved

-    Momentum building in the market in favour of safety devices

-    Continued expansion of market access channels

-    Distribution deal signed for Australia/New Zealand

Commenting on the results, Dr John Campbell, Chief Executive Officer of NMT,
said:

'Legislative pressure for the use of safe needle devices is continuing to
build in the US which is resulting in an increased demand for NMT's safety
syringes from both existing and new customers.  Awareness is also spreading
into European markets and we anticipate that pressure will build towards the
use of safe products in these territories.  The funds raised in March have
enabled us to focus on increasing our manufacturing capacity and our
production levels, and will also help us to expand our product range to
exploit this global market opportunity.

'During the past six months, we have experienced short-term challenges which
typically face developing companies such as NMT.  We are confident that we can
meet these and that we can take advantage of the exciting growth prospects
ahead.'


Enquiries:

NMT Group PLC                              Today:      0207 831 3113
Dr John Campbell, Chief Executive Officer  Thereafter: 01506 445000

Financial Dynamics                         Tel:        [phone]
David Yates/Sophie Pender-Cudlip



Introduction

During the last six months, NMT has experienced some of the challenges which
typically face developing companies.  None of these challenges is
insurmountable but they have meant that our sales are running approximately 6
months behind the levels that we had anticipated.  These challenges, which we
are in the process of resolving, can be outlined as follows:

-    It has taken longer than we had anticipated to bring the Sortimat
     assembly system up to satisfactory levels of quality production.  This is
     being addressed and we estimate that before the end of this year
     manufacturing capacity and efficiency on this assembly machine will be at
     a satisfactory level.

-    Some of our customers have requested that we make some minor alterations
     to our marketed products, which are underway.  They have also indicated
     to us that they require us to supply a broader product range.  This is
     also being addressed, as discussed more fully under 'Product Development'
     below.

Through listening to the needs of our customers, and with the new legislation
coming into force, we remain convinced that our products are right for this
marketplace.  We will continue to take measures to improve both our product
range and manufacturing output to ensure that we have the products available
that our customers require.

Financial Summary

Turnover for the period was £43,000 (1998 - nil) with cost of sales being
£475,000 of which some £373,000 related to the costs associated with
production on the Kahle semi-automatic line.  Since June 30, our cost of
materials has improved and is now lower than originally budgeted for.  Overall
improvements in machine efficiencies have resulted in significant reduction in
total cost of goods and this is expected to continue into 2000.

Operating expenditure for the period was £3.2 million (1998: £1.6 million) and
cash outflow was £3 million (1998: £2.1 million).  Continued tight controls,
however, have resulted in both measures being well within budget for the
period.  Cash in hand at the end of the period was £15.4 million (1998: £4.2
million), also showing a favourable comparison to budget.

In March, we announced a Placing and Open Offer of new shares in order to
expand both our manufacturing capacity and our product range. This offering
successfully raised £16 million.

We have identified no major Year 2000 issues to be remedied.  All mission
critical systems are Year 2000 ready.  Of our other, office-based systems,
those that require upgrading will be upgraded by manufacturers free of charge,
or at a cost which is not expected to be material.

Production & Manufacturing

Towards the end of 1998, we took delivery of our first, fully automated
assembly system (custom manufactured for us by Sortimat Automations GmbH).  In
February of this year, the system was validated for the commercial manufacture
of our 3ml 25G x 5/8' Safety Syringe (for subcutaneous injections).  We have,
however, experienced some problems building up production levels but are now
working to increase the productivity of the system towards its specified
operating rate to meet the anticipated demand for our product.  We have
applied some of the learning from operating our first assembly line into the
design of our second machine, due later this year.  This should enable us to
reach a higher operating rate more speedily.

In addition to the Sortimat activities, we have also been manufacturing 3ml
21G x 1.5' Safety Syringes (for intra-muscular injections) on our semi-
automated line made for us by Kahle Europea SpA.

In the second half of the year, with an improved production capability for our
3ml Safety Syringe product range, we should be able to more aggressively
attack the market, as described below.

Product Development

As indicated above, we are very aware of the growing need to expand our
product range to meet the demand from customers for our technology in the
marketplace.   Therefore we have recently successfully produced the first
commercial quantities of our 3ml 23G x 1' Safety Syringe.  This third needle
size is an important addition to our product line and our second Sortimat
assembly system, which will be delivered to our Livingston facility later this
year, will be capable of manufacturing all of the needle lengths and gauges
for our full 3ml Safety Syringe product line.

The design of our 1ml Safety Syringe product family is also complete. This
product family has a range of needle lengths and gauges and will be labelled
for a variety of different applications.  Early next year, we will install the
automated assembly system (manufactured for us by Mikron SA Boudry,
Switzerland) and will begin volume manufacture of these products.  The
addition of this product family to our line will be very significant for us,
particularly given that there are very few 1ml Safety Syringe designs
currently on the market.  Those on the market are manually activated, unlike
our syringes which are automatically activated.

In addition, we are accelerating the development of our other products which
are progressing well and will ensure a pipeline of additional competitive
products for us in the coming years.  These include:

-    the Second Generation Safety Syringe (any one of a range of safety
     needles can be mated with a 3ml, 5ml or 10ml Safety Syringe);
-    safety Phlebotomy System (for blood drawing);
-    the Safety Catheter (for drug or nutrition infusion); and
-    Pre-filled Safety Syringe (for liquid drug delivery and/or reconstitution
     and delivery of dry drugs).

Legislation

In the US, the legislative pressure, which has already caused healthcare
facilities in certain States to convert to safety products, continues to
build. Currently, California, Texas, Tennessee, New Jersey and Maryland all
have enacted laws that mandate healthcare facilities to use safety needles if
they are available. The law is in effect in California, with laws in the other
four States scheduled to come into effect in the near future. Taken together,
these five States represent over 20% of the hospital beds in the US.
Moreover, more than 20 additional States have similar legislation either being
drafted or already introduced into their legislative system.

More recently, Federal bipartisan needlestick protection legislation was
introduced into both the US House of Representatives and the Senate, and the
Federal Occupational Safety and Health Administration (OSHA) is discussing the
introduction of legislation which will harmonise needle protection activities
nationwide.

We believe that it is just a question of time before needle-containing devices
with a designed safety feature (such as our products) will be the only types
of needle containing devices available for use in the whole of the US.

A large union representing many of the US healthcare workers, the Service
Employees International Union (SEIU), has been a major force in sparking this
legislative momentum.  In Europe, we have begun to see signs of a similar
union-backed campaign, focused on healthcare worker safety, which is beginning
to take hold.  This is already materialising in Scotland and we anticipate
that it will spread across Europe, just as the early legislation in California
is spreading across the 50 American States.

Sales and Marketing

Sales in the period were £43,000, constrained by the manufacturing and product
challenges referred to above.

In anticipation of the resolution of these challenges, we have been building
our distribution channels to market.  NMT's technology and the quality of its
products, together with the increased legislative pressure for safe products,
has generated interest from many distributors.  We are currently in
discussions with several companies with a view to increasing our distribution
across a number of geographical territories.

During the first half of this year, we have continued to expand our
distribution network in Europe.  As a result, we now have 23 European
distributors with 180 sales representatives covering Germany, Italy, France,
Spain, Portugal, Switzerland, Austria, Belgium, Scandinavia and the UK.

In the US, we have appointed 25 distributors with over 200 sales
representatives covering the majority of the 50 States.  Our strategy is to
select distribution partners who, in addition to providing us with broad
geographical coverage, also provide us with broad market segmentation
coverage.  The major segments covered to date include physicians' offices,
occupational health facilities, prisons and correctional facilities, as well
as the major hospital segment.

Earlier this year, we signed an 18-month evaluation contract with Premier
Purchasing Partners, the largest group purchasing organisation (GPO) in the
US. More than 1,750 hospitals across the US use Premier's group contracts for
the purchase of medical devices as well as other medical supplies.  Our
products are currently under evaluation in several Premier hospitals and
initial feedback is encouraging.

In addition, we are pleased to announce today that we have signed a
distribution agreement with Promedica Pty Ltd in Australia and New Zealand.
Promedica is a leading supplier of medical and surgical products to the
hospital and other medical markets in these territories and has committed to
minimum purchases over the next few years amounting to several million
syringes.

We continue to seek the most qualified distribution partners for the other
territories outside North America and Western Europe.

Regulatory and Intellectual Property

Patents related to our Zero-Stik technology have now been issued in over 20
countries.  We have also filed patent applications in respect of an additional
six inventions, including designs relating to our Second Generation Safety
Syringe, Safety Phlebotomy Set, Pre-filled Safety Syringe and a Filling
Sheath, as well as extending the protection of our core needle retraction
technology.

We continue to believe that the patent infringement lawsuit concerning our
automatic needle retraction technology in the USA (which we reported on
previously) is unlikely to have a long-term material impact on the Company's
business.  During the period, we rejected a routine offer of settlement from
the plaintiff due to the unfavourable nature of the terms offered.

The importance of having a solid quality basis for NMT is essential and over
time the NMT Quality Management System has been developing and maturing. This
is based on an internationally recognised model for quality assurance in
design, development, production, installation and service (ISO9001) and
provides the definition and control necessary to ensure that high quality
products are consistently produced.  This Quality System model has been
improved by taking into consideration the requirements of another standard
known as EN46001, a European interpretation of ISO9001, specifically for the
medical device industry.

In May, an audit of our Livingston facility resulted in the award of ISO9001,
EN46001 and ISO13485 certificates for the Company.  These awards demonstrate
the commitment of all of the Company's employees to the highest quality
standards in our industry.

Facilities and Personnel

To date, our total headcount is 115 and, with our continued expansion and the
necessary globalisation of the management of our business, we will be making
several additional key staff appointments in the coming months.  In March this
year, our commitment to our staff was recognised by the award of Investors in
People.

Since the fundraising in March, we have developed a plan for the full
expansion of our facilities in Livingston.  We have already installed and
validated a second clean room in our factory which will accommodate the next
Sortimat assembly system due for delivery in the coming weeks.

In parallel, we have studied a variety of sites in several US States in order
to evaluate the optimal location for our US manufacturing plant. Our decision
making process has involved the consideration of factors such as access to an
appropriately skilled workforce, proximity to qualified injection moulders and
sterilisation facilities, access to a cost effective distribution centre for
the whole US and access to local incentives for investment.  We are now
considering a couple of locations and, at the appropriate time, will move
forward in establishing our US operations.  For the time being, however,
because of the importance of broadening our product range as prudently as
possible, we propose to continue to expand development in our Livingston base
where most of our expertise is currently located.

Outlook

Legislative pressure for the use of safe products has been building up much
faster than we had originally anticipated and demand for our products from our
international customers is increasing.  We expect this to spread to Europe and
therefore we aim to continue focusing our efforts on broadening our product
range and significantly building up manufacturing capacity.

As a result of the delay in sales referred to above, we now expect our loss
for the full year to exceed market expectations.  However, we are confident
that we can address the short-term challenges facing us and anticipate moving
into profitability during the year 2000.  We are also confident that the
favourable environment for our products will present our shareholders with
exciting growth prospects for the Millennium.



UNAUDITED CONSOLIDATED PROFIT & LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 30 JUNE 1999

                                          Six months  Six months          Year
                                               ended       ended         ended
                                             30 June     30 June   31 December
                                                1999        1998          1998
                                               £'000       £'000         £'000
Turnover                        (note 4)          43           -            14
Cost of sales                   (note 5)       (475)           -          (13)
Gross profit                                   (432)           -             1
Administration expenses                      (2,708)     (1,596)       (3,961)
Exceptional administration                         -           -             -
expense
Other operating income                             6           -           500
Operating loss                               (3,134)     (1,596)       (3,460)
                                                                              
Interest receivable                              207         147           228
Interest payable                                (20)           -           (6)
Loss for period                              (2,947)     (1,449)       (3,238)
                                                                              
Loss per share                  (note 2)      (6.1)p      (3.7)p        (8.2)p
                                                                              
Diluted loss per share          (note 2)      (5.8)p      (3.7)p        (8.2)p
                                                                              


The company has no recognised gains and losses other than the losses above and
therefore no separate statement of total recognised gains and losses has been
presented.

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



UNAUDITED CONSOLIDATED BALANCE SHEET AT 30 JUNE 1999

                                             30 June     30 June  31 December
                                                1999        1998         1998
                                               £'000       £'000        £'000
FIXED ASSETS                                                                 
Intangible assets                              1,823       1,950        1,930
Tangible assets                                3,783       2,219        3,187
                                               5,606       4,169        5,117
                                                                             
CURRENT ASSETS                                                               
Stocks                                           531           -           54
Debtors                                          433         274          177
Cash at bank and in hand                      15,419       4,161        3,411
                                              16,383       4,435        3,642
CREDITORS: Amounts falling due               (1,069)       (445)        (886)
within one year
                                                                             
Net current assets                            15,314       3,990        2,756
Total assets less current                     20,920       8,159        7,873
liabilities
CREDITORS: amounts falling due               (2,169)        (72)      (1,548)
after more than one year
                                                                             
NET ASSETS                                    18,751       8,087        6,325
                                                                             
CAPITAL AND RESERVES                                                         
Called up share capital                        3,142       1,964        1,964
Share premium account           (note 3)      23,784       9,589        9,616
Profit and loss account                      (8,175)     (3,466)      (5,255)
                                              18,751       8,087        6,325

The unaudited interim financial statements were approved by the Board of
Directors on 14 September 1999.

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 1999

                                          Six months  Six months         Year
                                               ended       ended        ended
                                             30 June     30 June  31 December
                                                1999        1998         1998
                                               £'000       £'000        £'000
Net cash outflow from                                                        
operating activities            (note 1)     (3,045)     (1,299)      (2,815)
                                                                             
Returns on investments &                                                     
servicing of finance
Interest received                                135          94          248
Interest paid on finance                                                     
leases                                          (20)           -          (6)
                                                                             
Capital expenditure &                                                        
financial investment
Purchase of tangible fixed                                                   
assets                                          (68)       (989)      (1,772)
                                                                             
Cash outflow before management                                               
of liquid resources and                                                      
financing                                    (2,998)     (2,194)      (4,345)
                                                                             
Management of liquid resources                                               
Cash (placed on)/withdrawn                                                   
from term deposit                            (6,800)     (2,400)        1,550
                                                                             
Financing                                                                    
Term loan                                          -           -        1,500
Finance lease - repayment of                                                 
principal                                      (340)           -         (99)
Issue of shares                               15,346           -            -
                                                                             
Increase (decrease) in cash in                                               
the period                                     5,208     (4,594)      (1,394)



NMT Group PLC

Notes to the financial statements for the period ended 30 June 1999


1.   RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW

                                             30 June     30 June  31 December
                                                1999        1998         1998
                                               £'000       £'000        £'000
Operating loss                               (3,134)     (1,596)      (3,460)
Depreciation:                                                                
  Intangible fixed assets                        107           -           20
  Tangible fixed assets                          312          60          282
Share options - application of UITF 17            27          27           55
Movement in:                                                                 
  Stocks (increase)decrease                    (477)           -         (54)
  Debtors (increase)decrease                   (184)          79           45
  Creditors increase(decrease)                   304         131          297
Net cash outflow from operating                                              
activities                                   (3,045)     (1,299)      (2,815)


2.   LOSS PER ORDINARY SHARE

Loss per ordinary share has been calculated in accordance with FRS 14
('Earnings per share') for all periods by dividing the loss attributable to
ordinary shareholders by the weighted average number of shares in issue.  The
difference between the basic and diluted loss per share weighted average
number of shares is wholly attributable to outstanding share options.


                                             30 June     30 June  31 December
                                                1999        1998         1998
                                                '000        '000         '000
Loss per ordinary share is calculated as                                     
follows:
Loss attributable to members of NMT                                          
Group PLC                                     £2,947      £1,449       £3,238
Weighted average number of ordinary                                          
shares in issue                               48,651      39,276       39,276
Loss per ordinary share                       (6.1)p      (3.7)p       (8.2)p
                                                                             
Diluted loss per ordinary share is                                           
calculated as follows:
Loss attributable to members of NMT                                          
Group PLC                                     £2,947      £1,449       £3,238
Weighted average number of ordinary                                          
shares and dilutive shares under option       50,458      39,269       39,313
Diluted loss per ordinary share               (5.8)p      (3.7)p       (8.2)p
                                                                             


3.   RECONCILIATION OF SHAREHOLDERS' FUNDS AND MOVEMENTS ON RESERVES

                                       Share       Share     Profit     Total
                                     capital     premium     & loss
                                                 account    account
                                       £'000       £'000      £'000     £'000
At 1 January 1999                      1,964       9,616    (5,255)     6,325
Shares issued in Placing and Open                                            
Offer 19 April 1999                    1,178      14,847          -    16,025
Expenses of share issue (note 15)          -       (679)          -     (679)
Retained loss for period                   -           -    (2,947)   (2,947)
Share options - application of             -           -         27        27
UITF 17
                                                                             
At 30 June 1999                        3,142      23,784    (8,175)    18,751




4.    SEGMENTAL ANALYSIS BY CLASS OF BUSINESS

Turnover

Geographical segment                      30 June       30 June   31 December
                                             1999          1998          1998
                                            £'000         £'000         £'000
United Kingdom                                 25             -            14
United States                                  18             -             -
                                                                             
                                               43             -            14


5.   COST OF SALES

Cost of sales for the six months to 30 June 1999 includes £373,000
attributable to producing product for sale on the Kahle assembly line.  This
line is designed primarily for the development of future products, not for the
assembly of product on a commercial basis as it is considerably more costly to
operate in terms of labour and manufacturing overhead costs.  The line was
used at this stage in the development of the company to maximise the breadth
of product available to customers.  As more of the company's fully automated
production capacity comes on line, the use of the development line for this
purpose will be phased out.


6.   RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                                         30 June      30 June     31 December
                                            1999         1998            1998
                                           £'000        £'000           £'000
Increase (decrease) in cash in the                                           
period                                     5,208      (4,594)         (1,394)
Cash inflow from increase in debt                                            
and lease financing                        (801)            -         (1,596)
Cash inflow from increase in liquid                                          
resources                                  6,800        2,400         (1,550)
Change in net debt resulting from                                            
cash flows and movement in net debt                                          
in the period                             11,207      (2,194)         (4,540)
Net debt at 1 January 1999                 1,815        6,355           6,355
Net debt at 30 June 1999                  13,022        4,161           1,815


7.   ANALYSIS OF NET DEBT

                                         30 June      30 June     31 December
                                            1999         1998            1998
                                           £'000        £'000           £'000
Cash at bank and in hand                  15,419        4,161           3,411
Bank loan due after one year             (1,500)            -         (1,500)
Finance lease due within one year          (228)            -            (48)
Finance lease due after one year           (669)            -            (48)
                                          13,022        4,161           1,815



INDEPENDENT REVIEW REPORT TO NMT GROUP PLC

Introduction
We have been instructed by the company to review the financial information set
out on pages 4 to 14 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.

Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors.  The Listing
Rules of the London Stock Exchange require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes,
and the reasons for them, are disclosed.

Review work performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board.  A review consists principally
of making enquiries of Group management and applying analytical procedures to
the financial information and underlying financial data and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed.  A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions.  It is substantially less in scope than an audit performed
in accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit.  Accordingly we do not express an audit opinion on
the financial information.

Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the interim financial information as presented for the six
months ended 30 June 1999.


PricewaterhouseCoopers
Chartered Accountants
Glasgow