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 year ending 31 December 2012.

AMS is pleased to report that much of the progress highlighted at the Interims has continued, with ActivHeal®, silver alginate and the converted foam portfolios all showing strong year-on-year progress. The integration of RESORBA® continues to plan and the recent NHS tender awards for the Group's sutures and haemostats means the business is in a position to start delivering commercial synergies by taking these RESORBA® brands into the UK market for the first time.

The overall performance of LiquiBand® in the US has, however, been mixed. LiquiBand® and LiquiBand® Flex have both continued to do well in the Alternative Site sector but, given the size of the opportunity and the quality of the Group's products, we have been disappointed with progress in the second half of 2012 in the much larger Acute Care hospital sector. We are actively reviewing the most effective strategy for accessing and gaining market share in this important sector. AMS's roll-stock foam revenues will also be lower than in the prior year, as previously highlighted in the Interim statement.

With the gains made across a number of fronts being offset to some extent by the performance of LiquiBand® in the US Acute Care hospital sector and continued pressure on foam roll-stock, overall indications for the full year are that AMS will be at the lower end of market expectation1 for pre-tax profits.

Dr. Don Evans, Non-Executive Chairman of AMS, said:

"We remain excited by the opportunity for LiquiBand® in the Acute Care hospital sector in the US. We are actively addressing our sales channel to achieve better market penetration as progress has been slower than expected. We have several developments coming through our R&D pipeline and these combined with further anticipated progress in our existing businesses and from our RESORBA® brands, mean that the Board remains optimistic about the Group's overall prospects."

1 The range of market expectation for profit before tax, amortisation of acquired intangible assets and exceptional items is £11.9m to £12.8m. Consensus is at £12.5m.

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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. These products are sold in countries across the globe either directly or through strategic partners and distributors.

AMS's advanced woundcare products are based on an extensive range of technologies including alginates, silver alginates and hydrophilic polyurethane foams. These and other products pioneer the concept of moist wound healing, allowing wounds to heal faster and with less pain and scarring. They protect the wound, deal with tissue fluids, provide an optimal environment for healing to occur and, in the case of silver alginates, include a safe and effective broad-spectrum anti-microbial agent for infection control. AMS's advanced woundcare products are sold globally on an Original Equipment Manufacturer basis and, in the UK, direct to the NHS under the ActivHeal® brand.

AMS's wound closure and sealants products are based on cyanoacrylate adhesive ("superglue") technology developed for medical applications. Tissue adhesives offer significant benefits over conventional ways of closing wounds following trauma or surgical incision. They are simple to use, non-invasive, help to reduce the risk of infection, minimise trauma to the patient and provide good clinical and cosmetic outcomes. The technology is also ideally suited to protecting skin from breakdown or for use as a skin sealant to help prevent infection of surgical sites. AMS's wound closure and sealants products are primarily sold under the LiquiBand® brand via a network of distributors.

In December 2011, AMS acquired RESORBA, a German based woundcare and wound closure business. RESORBA is a 75 year old manufacturer and distributor of sutures and collagen products for surgical disciplines, with direct sales capabilities from sites in Germany, the Czech Republic and Russia, targeting surgeons working in hospitals and private practices, and oral surgery. RESORBA has a range of its own technologies and brands, and also distributes a range of complementary, third-party products, including AMS's LiquiBand® tissue adhesive, which it has distributed in Germany for the previous eight years.