CSRT.L Regulatory News (CSRT)

News Release

19 March 2010

Consort Medical plc

Interim Management Statement

Consort Medical plc (LSE: CSRT), today issues its Interim Management Statement for the period from 1 November 2009 to date.

Consort Medical operates two divisions; Bespak, which manufactures medical devices primarily for inhaled drug delivery and autoinjection (via its newly acquired subsidiary, The Medical House), and King Systems, which supplies premium quality airway management products.

Acquisition strategy

Consort Medical has a publicly declared intention to accelerate its projected organic growth with carefully targeted acquisitions. Consort Medical made announcements on 26 February and 2 March concerning a possible offer for Advanced Medical Solutions Group plc (AMS). The approaches were made following a detailed review, as the Board of Consort Medical believes that a combination of the two businesses makes good commercial and strategic sense and that their attractive indicative offers would reward the shareholders of both companies. AMS has rejected both indicative approaches. As announced yesterday all discussions with AMS have been terminated.

Business performance

Bespak's core respiratory business has experienced better trading conditions in the second half of the year, with order levels slightly higher than anticipated. This, combined with excellent continuing cost control, has resulted in marginally improved business performance. Good progress has been made with several important new business opportunities, including the initial supply of new valves for a major global customer, increased device sales to an existing customer and two device programmes entering the industrialisation phase with enhanced income for provision of development services.

The Medical House has been integrated into Bespak and will be rebranded Bespak Injectables. Synergies will have been fully achieved by the end of this month. The combined customer base is responding well to the new product offering of highly versatile autoinjector technology coupled with Bespak's high quality manufacturing capability and robust financial platform. FDA approval for the Dr Reddy's device is anticipated in mid 2010 and stock build orders have been received in anticipation of product launch. The contract with a major pharmaceutical company is progressing well; the customer has declared that the development phase has been completed and is now progressing towards regulatory filing on schedule. The Board remains confident that Bespak Injectables will be accretive next fiscal year as previously forecast.

King Systems continues to progress well with its manufacturing automation and transformation plans. However, the expected disruption caused by the physical relayout of the core Noblesville facility in anticipation of automation was exacerbated by the unusually severe winter weather in the US, leading to output below last year's levels. The business made exceptional efforts to ensure that customers received product as needed, and output has now returned to normal, with the physical reorganisation now largely complete. It is anticipated that King Systems will retain a higher than usual order book at year end and turnover is therefore expected to be flat on last year but with a continuing strong order intake.

Financial position

Net debt was £39m at the end of February, comfortably within banking covenants. Cash and unused headroom facilities amounted to £27m.

Analyst and investor day at Bespak

Consort Medical is hosting an analyst and investor day at Bespak's King's Lynn facility on 23 March 2010.

Summary

The Board can confirm that the initiatives required to drive growth over the medium term are progressing well, and remains confident that Consort Medical will deliver trading results for the year in line with its expectations.

Enquiries:

Consort Medical plc is a leader in medical devices for inhaled drug delivery and anaesthesia. The Group develops drug delivery systems for the pharmaceutical industry and disposable airway management products for critical care settings in hospitals.

Consort Medical develops and manufactures metered dose inhaler valves, actuators, compliance aids, dry powder devices, disposable facemasks, breathing circuits and laryngeal tubes. The Group has facilities in King's Lynn, Sheffield and Hemel Hempstead in the UK, Indianapolis, Indiana and Kent, Ohio in the US, and Mumbai, India. Consort Medical is a public company quoted on the full list of the London Stock Exchange (LSE: CSRT).