New Agreements

SURGICAL INNOVATIONS GROUP PLC
4 August 1999


            POSITIVE MOVES FOR SURGICAL INNOVATIONS

Surgical Innovations Group plc (Surgical Innovations), the AIM
listed  provider of medical products, today announces that  it
has  recently  entered into two agreements that  will  further
secure its position in the medical device arena:

Agreement  with Genzyme to design and manufacture new  keyhole
surgery device:
The  first  batch  of keyhole surgery devices manufactured  by
Surgical  Innovations for a subsidiary of Genzyme Corporation,
Genzyme  Surgical  Products, is due to be  shipped  to  France
later this month.

This  follows  an  agreement signed  earlier  this  year  with
Genzyme  for Surgical Innovations to design and manufacture  a
new 'port access device' (used for creating the point of entry
in  keyhole  surgery) which will reduce the  costs  associated
with  this type of surgery.  The 'resposable' product combines
both reusable and disposable components.

The  manufacturing agreement is expected to add in  excess  of
£200,000  to sales for Surgical Innovations over the  next  12
months.  Genzyme will own and market the product with Surgical
Innovations as the sole manufacturer.

Research  agreed  with Oxford University to  develop  existing
autologous blood product:
The  department  of Engineering Science at Oxford  University,
headed by Professor Brian Bellhouse, has agreed to undertake a
research  project  to  develop the next  generation  of  blood
filtration technology for Surgical Innovations' intraoperative
ABT  programme.  Autologous blood transfusion (ABT) is the use
of  one's  own  blood  during medical procedures  requiring  a
transfusion.

The  project  funded  by Surgical Innovations  will  begin  in
August  for  a  five month period and will  look  at  ways  of
improving  the  speed  and volume of blood  processed  in  the
existing product, which Professor Bellhouse helped develop.

The  demand  for  autologous  blood  products  looks  set   to
increase.   In  December  last  year,  as  a  result  of   the
Government's White Paper for modernising the NHS, an objective
was  set  (with the aim of being achieved by March  2000),  to
routinely  inform patients of the availability  of  autologous
blood.    Surgical  Innovations  is  currently  the  only   UK
manufacturer of autologous blood products.

Commenting  on the developments, Ian Lomas, Managing  Director
of Surgical Innovations said:

'The  Genzyme deal has proved that our investment in  research
is  paying  off.   We aim to push hard on our design  projects
that  lead  to manufacturing opportunities as we believe  this
will give us an edge over our competitors.'

He  continued:   'The  research  being  undertaken  by  Oxford
University  will  help  us  to  secure  our  position  in  the
autologous  blood  market,  where we  are  already  seeing  an
increase in the global requirement for autologous blood.'

For further information contact:

Ian Lomas
Surgical Innovations Group plc
Tel: [phone]

Keeley Middleton
Citigate Dewe Rogerson
Tel: [phone]