AOR.L Regulatory News (AOR)

For Immediate Release 16 June 2011

AorTech to Open US Manufacturing and Technology Centre

AorTech International plc ("AorTech" or "the Company") (AIM: AOR) is pleased to announce the relocation of its primary manufacturing operations from Melbourne, Australia to the Minneapolis/St. Paul area (MSP) in the USA. The total cost of this strategically important move is expected to be $1.8 million, which will be fully funded from payments that the Company will receive following the restructuring of certain customer licences (amounting to $4.2 million) and the sale of certain highly depreciated capital assets (amounting to $300,000). The surplus funds will enable production to be commenced in the US facility, provide cash for working capital purposes, and provide a solid base upon which to grow the component business, with the emphasis on accelerating a number of pacemaker header and other reaction injection moulding projects.

AorTech anticipates the relocation will be beneficial in a number of ways. Firstly, it will allow for the growth of AorTech's polymer and component businesses. Secondly, the MSP area is the hub for the largest concentration of medical technology companies in the world and includes many of AorTech's current and potential customers. Finally, the relocation will remove certain exchange rate risk to the Company as the expenses associated with the Company's primary cost centre (its factory) and its revenues will be in the same currency.

Included in this move are AorTech's medical polymer and component divisions, along with the customer application engineering, R&D, and quality assurance labs to support these two manufacturing divisions. The customer reaction to this initiative has been very positive and production is expected to commence in the Rogers facility, near MSP, in Q3 2011.

Access to a larger, highly qualified and skilled workforce in medical materials and device technology in the MSP area will enable AorTech to tailor its skill base to match specific project requirements and will accelerate product qualifications for customers. Certain key employees, including Chief Scientific Officer Ajay Padsalgikar PhD, will be retained. AorTech is also delighted to announce the appointment of Gregg Chiponis as Vice President of Operations and Quality. Mr. Chiponis has 23 years of diverse Product Development, Operations and Manufacturing Engineering experience with a broad range of implantable medical devices at a number of leading medical technology companies, including Medtronic, C R Bard and most recently AGA Medical Corporation. His primary focus will be to support the growth of the component business.

Frank Maguire, Chief Executive Officer, said "This is a significant strategic development for AorTech. The relocation of our Manufacturing and Technology Centre into the US medical device marketplace has been something our existing and prospective customers have been requesting for some time. Confidential discussions with customers ahead of this announcement have led us to believe that this move will be extremely well received. We expect the move to have an important impact on the creation of new business, accelerating our customer application projects and our cost structure. In addition, the funds from this transaction will provide resources to accelerate a number of key AorTech device and product development programs."

About AorTech: AorTech develops and manufactures biostable, implantable polymers, including Elast-Eon™ and ECSil™, the world's leading long-term implantable co-polymers, as well as proprietary processing methods for various devices, including small part reaction injection moulding (RIM) manufacturing. With more than 3 million implants and 6 years of successful clinical use, AorTech polymers are currently used in cardiology, orthopaedic, urological and gastroenterological applications, including pacing leads, cardiac cannulae and stents. Devices manufactured from AorTech polymers have numerous US FDA PMA approvals, 510k's, CE Marks, Australian TGA and Japanese Ministry of Health approvals.

Elast-Eon™ and ECSil's™ biostability is comparable to silicone while exhibiting excellent mechanical, blood contacting and flex-fatigue properties. Our polymers can be processed using conventional thermoplastic extrusion and moulding techniques. AorTech provides a range of materials in a variety of application-specific formulations for use in medical devices and components.

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For further information please contact:

AorTech International plc

Frank Maguire, Chief Executive Officer

Tel: + 1 801 201 4336

Evolution SecuritiesBobbie Hilliam / Chris Clarke

Tel: +44 20 7071 4300

AorTech International plc

Sarah Price, Media Relations

Tel: + 1 801 649 4163

e-mail sprice@aortech.com