LID.L Regulatory News (LID)

LIDCO GROUP PLC

("LiDCO" or the "Company")

First half trading update and resignation of Director

LiDCO Group Plc (AIM: LID), the cardiovascular monitoring company, is pleased to provide an update on trading for the six months ended 31 July 2012.

The Board expects that these results will show revenue for the period to have increased by approximately 4% to £3.3 million with cash at the period end of approximately £1.0 million. Product sales (excluding non recurring license fees) were up by approximately £500k (an increase of 18%).

Sales in the UK increased overall by 49% with both LiDCO and Argon distributed product sales increasing well. Surgical disposables unit sales in the UK showed a significant and encouraging increase of 33%.

LiDCO's export sales were down in comparison to last year due to a combination of non recurring license fees (£415k) flattering the prior period whilst the wider European economies continue to be slow.

The project for monitor integration and parameter convergence has progressed well during the period and is on target for launch in the last quarter of 2012. The product, incorporating a depth of anesthesia function and non-invasive blood pressure module, will be previewed at the American Society of Anesthesiologists Annual Meeting in Washington in October this year. This product will be an important component in the Company's growth in future years and its market positioning is intended to both accelerate monitor placements and the use of disposables in the upgraded installed monitor base.

A further driver for growth is expected to be the adoption by the NHS of fluid management technology. This follows the publication in May, by the NHS Technology Adoption Centre, of the Intraoperative Fluid Management Technologies ["IOFMT"] Adoption Pack, which aims to guide the successful implementation of IOFMT across the NHS in England. The report informs all NHS organisations of the steps they need to take in order to start using or increase their use of these technologies. We expect this to positively impact sales late in the second half and be a material influence from then on. The addition of the non-invasive blood pressure function to the LiDCOrapid monitor could provide a one-monitor solution for many of the patient populations identified by the NHS as candidates for this form of care.

The Board also announces John Barry has resigned as Sales and Marketing Director with immediate effect. John has been with LiDCO for 11 years; he has helped the Company establish its technology in the critical care and high-risk surgery arenas and seen LiDCO breakthrough to profitability last year. John is moving on to take up an exciting new opportunity with an emerging technology and we all wish him the very best and thank him for his contribution to the Company.

Dr Terry O'Brien, CEO of LiDCO, commented: "We are pleased to be reporting another period of good progress for the Company. During the period there has been intense product development, increasing interest in our technology from the NHS and the finalisation of our distribution arrangements in Japan, following registration and reimbursement approval for the LiDCOrapid products. Japan is a key territory for LiDCO with a potential market for improved intraoperative fluid management disposables of US$285 million per annum. We expect with these drivers we will see significant income growth in the second half."

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About LiDCO Group Plc

LiDCO is a supplier of minimally invasive hemodynamic equipment to hospitals, to monitor the amount of blood flowing around the body and ensure that vital organs are adequately oxygenated. LiDCO's products facilitate the application of hemodynamic optimization protocols for high risk patients in both critical care units and in the operating theatre.

Increasingly clinical studies are showing that the optimization of patients' hemodynamic status in high risk patients produces better outcomes and reduced hospital stay. LiDCO's computer-based technology, developed at St Thomas' Hospital in London, has been shown to significantly reduce morbidity and complications, length of stay and overall costs associated with major surgery.

Key Products:

All LiDCO monitors use single-patient disposables (sensors or smartcards) which provide an ongoing revenue stream.

Clinical Validation & Education

LiDCO has been selected as the sole technology for two ongoing multi-centre government-funded studies in the UK and US. OPTIMISE is sponsored by the UK Government for optimizing cardiovascular management in high-risk abdominal surgery patients and in the US, MOnIToR is a US Government sponsored transplantation donor organ optimization study. The Company has also developed a hemodynamic workshop at St George's Hospital, London.

LiDCO Distribution Network:

LiDCO's strategy is to sell directly to hospitals in the UK, and through a network of specialty critical care and anesthesia distributors in the rest of the world.

LiDCO's sales office is in Cambridge, its manufacturing facility and headquarters are in London and its shares are traded on AIM. For more information please see www.lidco.com.