Deltex Medical Regulatory News (DEMG)

Deltex Medical Group plc

Progress with implementation of CardioQ-ODM at Interior Health Authority in Canada

14 March 2012 - Deltex Medical Group plc, the global leader in oesophageal Doppler monitoring (ODM), announces the results of the first phase of the Interior Health Authority's implementation of CardioQ-ODM™.

Six hospitals within Interior Health Authority, a primarily rural health authority in British Columbia, Canada, audited the impact of introducing CardioQ-ODM to guide fluid management during bowel surgery. The audit showed improved outcomes for patients with reduced post-operative complications and a consequent 40% average reduction per patient in length of hospital stay.

As a result of the audit, the clinical team leading the project has:

·; requested ongoing funding for the maintenance and expansion of CardioQ-ODM for the largest eight hospitals in the 20 plus hospital authority: an initial order for close to 500 probes has already been placed with our Canadian distributor

·; incorporated the CardioQ-ODM and its associated fluid management principles as a key component of the enhanced recovery pathway to ensure optimal patient care

·; planned for ongoing measurement of compliance and successes of the CardioQ-ODM

·; developed a draft article to disseminate the Interior Health experience throughout Canada

Dr. Ron Collins, Department of Anesthesiology, Kelowna General Hospital, commented:

"The average patient's hospital stay was reduced from 9.5 days to 5.5 days. This improvement in patient outcomes is consistent with Interior Health's vision to set new standards of excellence in the delivery of health services in British Columbia. Indeed, the combination of benefits to patients in terms of improved outcomes and the benefits to the health care system in terms of improved bed efficiency is remarkable."

Ewan Phillips, Chief Executive of Deltex Medical, commented:

"We are pleased with Interior Health Authority's rapid progress with implementing CardioQ-ODM. Their audit results provide compelling further evidence of the clinical and economic benefits of CardioQ-ODM in surgery as well as informing ongoing implementation within the Interior Health system."

For further information, please contact:-

Deltex Medical Group plc 01243 774 837

Nigel Keen, Chairman njk@deltexmedical.com

Ewan Phillips, Chief Executive eap@deltexmedical.com

Paul Mitchell, Finance Director pjm@deltexmedical.com

Nominated Adviser & Broker

Arden Partners plc 020 7614 5900

Chris Hardie chris.hardie@arden-partners.com

Jamie Cameron jamie.cameron@arden-partners.com

Kreab Gavin Anderson 020 7074 1800

Robert Speed rspeed@kreabgavinanderson.com

Deborah Walter dwalter@kreabgavinanderson.com

Notes for Editors

Deltex Medical manufactures and markets the CardioQ-ODMÔ system. Oesophageal Doppler monitoring using the CardioQ-ODM is the only therapy to measure blood flow in the central circulation in real time. Minimally invasive, easy to set up and quick to focus, the device generates a low-frequency ultrasound signal, which is highly sensitive to changes in flow and measures them immediately. Randomised, controlled trials using Doppler have demonstrated that early fluid management intervention will reduce post-operative complications, reduce intensive care admissions, and reduce the length of hospital stay.

The CardioQ-ODM has two distinct established clinical applications: firstly, to guide fluid management during surgery and secondly, to monitor cardiac output in critical care settings.

Surgical market

In March 2011 the National Institute for Health & Clinical Excellence ('NICE') recommended that CardioQ-ODM be considered for use in patients undergoing major and high risk surgery and in high risk patients undergoing major surgery. NICE estimated the applicable number of such patients in the NHS in England alone to be over 800,000 each year. CardioQ-ODM has been shown to be effective in both elective and emergency surgery and with both general and regional anaesthetics. This recommendation was specific to CardioQ-ODM and was based on the robust evidence base that it enjoys.

The NICE evaluation and recommendation confirms that the potential global market for CardioQ-ODM in surgery includes tens of millions of patients, even if confined to developed health economies: the most conservative estimate of the potential value of the market opportunity Deltex Medical has created is in excess of £1 billion per annum. The Company's core focus is on building market leading positions in this surgical market, both geographically and by type of surgery.

Critical care market

In critical care settings, well-equipped hospitals will often have more than one cardiac output monitoring technology available. In this environment, ODM's strengths are that it is quick to set up, easy to use, safe, low cost and the ideal technology for a patient in crisis requiring rapid or frequent intervention. The potential market for cardiac output monitoring in critical care is a fraction of the size of that for intra-operative fluid management.

Through the recent launch of the CardioQ-ODM+, Deltex Medical has incorporated pulse pressure variation, the best validated parameter from the Pulse Pressure Waveform Analysis ('PPWA') approach to monitoring cardiac output. Note that, in surgery, adding PPWA parameters does not expand per se the market potential of ODM, the Company's clinical and market research indicates that it may help accelerate some clinicians' acceptance of the value of ODM measured flow variables.

Company goal

Our goal is to make oesophageal Doppler monitoring (ODM) a standard of care for patients in both these markets. We believe that, in most modern health systems, it is essential to have a robust evidence base of both clinical benefit and cost effectiveness in order to achieve system-wide adoption of a new medical technology. Deltex Medical is one of the very first medical technology companies to have completed the investment necessary to build such an evidence base: as a result, use of ODM during surgery has the proven potential to deliver both clinical and economic benefits that are material at each of patient, hospital and system level.

The Company is currently in the implementation phase of achieving this goal in a number of territories worldwide and there are already over 2,500 CardioQ-ODMs currently in use in hospitals worldwide and distribution arrangements are in place in over 30 countries.