AGM Statement

Surgical Innovations Group PLC
26 April 2002

Surgical Innovations Group plc

Chairman's Statement

Annual General Meeting - 26 April 2002



Since my Chairman's statement issued with the 2001 Annual Report just over a
month ago, there have been a number of significant developments in your Group.
I am delighted to have this opportunity to provide you with an update on these
important events.

I am pleased to be able to inform you that the development of our exciting and
innovative laparoscopic port access system is nearing completion.  We believe
there is a market in excess of $500 million for this product and, given our
expanding international distribution network, we confidently expect to achieve a
significant share for our proprietary device.

As a consequence of the improved financial performance in 2001, the Group is in
a position to embark upon a substantial capital expenditure programme.  This
will enable us to make a substantial investment in 'state-of-the-art' CNC
machine tools.  These machines, together with new precision jigs and fixtures,
will be housed in a recently acquired manufacturing facility.  This will ensure
that your Group is able to meet anticipated demand for its unique single-use
scissors.

Our strategy of focusing on the core product areas of Minimally Invasive Surgery
(MIS) and Autologous Blood Transfusion (ABT) is developing in accordance with
our expectations.

In the MIS arena, our single-use scissors were launched in the United States by
one of our major partners at the World Congress of Endoscopic Surgery in New
York.  The product was well received and we are now making shipments against the
£2.5m distribution contract, which was announced on 14th January 2002.  We
supported the product launch and conducted sales training for over 50 sales
representatives.

Our 'pistol grip' handle is now moving towards production and it is anticipated
that it will be ready for distribution in September 2002.  We firmly believe
that this product will drive forward the sales of the single-use scissors in our
key markets.

I am pleased to announce that we have appointed a senior figure in the field of
clinical and experimental research in the field of blood processing to chair the
Group's Scientific Advisory Panel in this important area.

Our core business continues to improve and, with over 60 distributors
world-wide, sales volumes to date continue to exceed internal budgets.  We
believe that by continually supporting and developing relationships with our
distribution partners, we are well placed to expand our business opportunities.

The Board is conscious of the need to keep shareholders and investors informed
and, therefore, we are constantly looking towards improving our methods of
communication.

Your Board is confident that there is an exciting future for the Group and I
look forward to reporting to you again with news of our progress.

For further information:


Surgical Innovation Group plc                        Tel: [phone]

Doug Liversidge, Chairman
Graham Bowland, Finance Director
Stuart Moran, Technical Director


Binns & Co PR Ltd                                    Tel: [phone]

Sophie Morton, Binns & Co PR Ltd                    Mobile (Today): 07812 356442





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