US Distribution Agreement

Surgical Innovations Group PLC
30 July 2007




Press Release - final                                              30 July 2007



                       Surgical Innovations Group plc

                             ('SI' or 'The Group')





                            US Distribution Agreement



Surgical Innovations Group plc (AIM: SUN), the designer and manufacturer of
innovative surgical devices, announces that it has signed a distribution
agreement with MGM Med Inc. ('MGM'), a wholesale distributor of medical and
hospital equipment, for the provision of its laparoscopic equipment to the US
market.



Under the terms of the agreement, MGM has the right to use the Surgical
Innovations ('SI') name and will promote the SI brand through its newly formed
subsidiary, Surgical Innovations US Inc. ('Surgical US').



Surgical US will become the master distributor of SI branded products in the US
and will engage with new key channel partners including surgical procedural tray
companies, major medical distributors and small independent representatives that
service more than 6,000 hospitals in the US market



The agreement incorporates a minimum sales target of US$20 million, net to SI,
over the five year term.



The agreement has already led to the appointment by Surgical US of its first
channel partner, Tri-anim Health Services, Inc. ('Tri-anim'), a leading
specialty distributor of medical and hospital equipment in the US.  Tri-anim
will begin sales of SI's single use laparoscopic scissors from August 2007,
initially in the south east of the US and increasing thereafter on a regional
basis, eventually providing nationwide coverage.

Mary Meyer, President and CEO of Surgical US, said: 'The US market for single
use scissors is currently valued at over US$125 million and we see huge
potential for SI products throughout the entire US laparoscopic equipment
market.'



Graham Bowland, Finance Director of Surgical Innovations Group plc, commented: 
'The creation by MGM of Surgical US provides new and exciting routes to market
for SI's products, further expanding our presence within North America.  The use
of the Surgical Innovations trademark will increase our brand recognition across
the US and will support our strategy for future growth.'





                                    - Ends -



For further information:
Surgical Innovations Group plc
Graham Bowland, Finance Director                       Tel: [phone]
[e-mail]                                 www.sigroupplc.com


Hanson Westhouse Limited
Tim Feather / Matthew Johnson                          Tel: [phone]
[e-mail]                          www.hansonwesthouse.com



Media enquiries:
Abchurch
Gareth Mead / Justin Heath                             Tel: [phone]
[e-mail]                            www.abchurch-group.com




Notes to Editors:

Surgical Innovations Group plc specialises in the design and manufacture of
innovative devices for use in minimally invasive surgery and industrial markets.
The Group employs over 50 people and is headquartered in Leeds.



The Group's medical division is focused on strong international growth in two
specialist areas namely minimally invasive surgery, where products are used in
'keyhole' surgery which is more accurately known as laparoscopic surgery, and
products for autologous blood transfusion whereby a patient's own blood is
recycled.



The Group's industrial division utilises Surgical Innovations' core medical
device design expertise and technology in innovative engineering applications.



For more information, see www.sigroupplc.com




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