Advanced Medical Solutions Group Regulatory News (AMS)

Advanced Medical Solutions Group plc

("AMS" or the "Group")

Pre-Close Trading Update

Winsford, UK: Advanced Medical Solutions Group plc (AIM: AMS.L), the global medical technology company, today announces an update on trading prior to its close period for the half year ending 30 June 2013.

The good start to the year, as highlighted in the 2012 Preliminary Results announcement on 6 March 2013, has continued and the reorganisation of the Group into four business units is delivering results. The Board confirms that it expects both revenue and profitability for the full year 2013 to be in line with current market expectations.

The Branded Direct Business Unit has responsibility for driving own-brand sales direct to end users in Germany, the UK and the Czech Republic and accounted for 38% of 2012 revenues. Itis showing particularly good growth this year with the ActivHeal® range in the UK, together with steady progress elsewhere by both LiquiBand® and RESORBA® into the relevant markets.

The Branded Distributed Business Unit has responsibility for driving own-brand sales through a third-party network of global distribution partners, and accounted for 13% of 2012 revenues. It is also making good progress this year. In the US, the LiquiBand® range of products has continued to gain market share in the alternative site sector, although AMS's market share in the acute care sector is yet to show an increase for the first half year. In this regard, the recent FDA approval for the Group's 2-octyl cyanoacrylate, which was received on 3 June, will enable AMS to launch a further product in the second half of 2013 with a major, acute care focused partner and, as a result, the Group anticipates being able to report progress in the US acute care sector for the full year. Elsewhere, sales of LiquiBand® in other European markets have shown good growth in the first half and approval of the hernia mesh device for the European market by the end of 2013 remains on track.

The Original Equipment Manufacturing (OEM) Business Unit has responsibility for driving sales through business-to-business partners, and accounted for 42% of 2012 revenues. It has performed strongly so far in 2013 with sales of the Group's silver alginate range of products, in particular, growing at rates far in excess of the general market growth rate.

The Bulk Materials Business Unit sells roll-stock materials to third-party partners which have their own converting and packaging capabilities, and accounted for 7% of 2012 revenues. While revenues are expected to be relatively flat at the half year, this is due to a timing issue with one customer delaying some orders into the second half of the year. This Business Unit is still expected to show good growth for the full year.

In conclusion, the Board believes that the prospects of the Group remain excellent.

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About Advanced Medical Solutions Group plc - see www.admedsol.com 

Founded in 1991, AMS is a leader in the development and manufacture of innovative and technologically advanced products for the US$15 billion global wound care market. Through a mix of organic development and a number of acquisitions, AMS now has a wide range of products based on technologies that include alginates, silver alginates, foams, collagens, cyanoacrylate adhesives and sutures.

AMS manufactures wound care products for an extensive list of Original Equipment Manufacturer ("OEM") customers around the world, but the majority of the Group's revenues now come from its own brands - ActivHeal® wound care products in the UK to the NHS, LiquiBand® cyanoacrylate products primarily in the UK, Europe and the USA, and RESORBA® sutures and collagen wound care products primarily in Europe. AMS develops innovative products from its R&D pipeline which it commercialises globally, either directly or through partnerships with its OEM customers.

AMS's products are sold globally via a network of regional or multinational partners and distributors, as well as via AMS's own direct sales forces in the UK, Germany, the Czech Republic and Russia.

With 450 employees operating under four distinct business units (Branded Direct, Branded Distributed, OEM and Bulk Materials) that match its multiple products and routes-to-market, AMS's products are manufactured from two sites in the UK, one in the Netherlands, two in Germany and one in the Czech Republic.