AOR.L Regulatory News (AOR)

1 Aug 2005 07:01

Aortech International PLC01 August 2005 For immediate release 1 August 2005 AorTech International plc ("AorTech" or the "Company") Spinal Disc Licence AorTech International plc announces the signing of a non-exclusive technologylicence and material supply agreement with Pearsalls Development Limited ("Pearsalls") of Somerset, UK for its fatigue resistant, biostable polymer,Elast-Eon(TM). The agreement includes a nominal up-front fee and anticipates a series ofescalating pre-commercial co-development milestone payments. If these milestonesare accomplished, the agreement may generate revenue for AorTech ofapproximately £1.0 million over the development period. The agreement contains asingle digit royalty for AorTech on end product sales in the commercial phase. The specified field of development is for spinal disc products with a focus onthe lumber spine. The agreement anticipates that AorTech will supply moulded Elast-Eon(TM)components to Pearsalls and contains provisions for the expansion into otherorthopaedic applications, along with incremental revenue for AorTech. Commenting on the agreement, Frank Maguire, AorTech's Chief Executive said: "The spinal disc replacement market is multi-billion and is projected to grow ata rapid pace throughout the next decade. AorTech has a number of active materialtechnology programs underway with orthopaedic product technology companies andis delighted that this first partnership with Pearsalls can be announced today". For further information please contact: AorTech International plc 00 1 801 201 4336Frank Maguire, Chief Executive Buchanan Communications 020 7466 5000Ben Willey, Lisa Baderoon, Rebecca Skye Dietrich Notes to Editors: AorTech International plc is a public limited company formed under the laws ofScotland, UK and is traded on the Alternative Investment Market, a marketoperated by the London Stock Exchange plc, under the trading symbol AOR. Additional material concerning AorTech International is available on theCompany's website at www.aortech.com , or may be obtained by contacting theCompany's Investor Relations firm, Buchanan Communications Limited. This information is provided by RNS The company news service from the London Stock Exchange