Sosandar Regulatory News (SOS)

1 Aug 2007 07:00

Embargoed: 0700hrs, 1 August 2007

MeDaVinci plc ("MeDaVinci" or the "Company") MeDaVinci Invests in Breakthrough Blood Analysis Technology

MeDaVinci, the investment company focussed on technologies, products and services in the health and wellness markets, is pleased to announce that it has acquired a 30% interest in Demecal Europe B.V. ("Demecal") for ‚£2.1 million to be satisfied by the issue of 17,500,000 new ordinary shares of MeDaVinci (the "Consideration Shares") (which represents 29.8% of the enlarged share capital of the Company). This equates to a share price of 12 pence per share, which is at a premium of 30% to the current mid market share price of 9.25p. Application has been made for the Consideration Shares, which will rank pari passu with existing ordinary shares in MeDaVinci, to be admitted to trading on AIM on August 7, 2007.

Demecal

Demecal has developed, with Erasmus Medical Centre in Rotterdam, a patented technology for the analysis of blood. It shares the patents with Leisure Incorporated, a Japanese company. Demecal owns the rights exclusively to Europe and jointly to the USA, whilst Leisure owns the rights to Asia. Demecal's equipment, known as "The Demecal Lifestyle Test", enables on-the-spot plasma production using only one drop of blood. This plasma is sent to the ISO certified laboratory and analysed according to hospital standards. A validation study was presented by Demecal at the congress for Pre Diabetes in Barcelona last April and during the Euromedlab congress in Amsterdam in June this year, showing that the Demecal method is as reliable, on ten different parameters, as a conventional blood test. More parameters including HIV and other STD's, liverfunction, and PSA (Prostate) will be added.

Demecal commenced operations in the summer of 2006 and in its first financial and start up period ended December 31, 2006, Demecal reported a loss before taxation of Euros 421,000. Net assets of Demecal at December 31, 2006 were Euros 172,000. Demecal has made its first pilot sales during Q2 2007.

MeDaVinci has also agreed to provide a convertible loan to Demecal of up to ¢â€š¬ 1,000,000, convertible at the same valuation at which MeDaVinci has acquired its 30% interest. Upon full conversion, this would lead to an increase of the interest by MeDaVinci in Demecal to 38.4 per cent.

Transaction

4,900,000 of the Consideration Shares will be issued to a company controlled by Peter Teerlink, Chairman of MeDaVinci, thereby constituting a related party transaction.

The Directors (with the exception of Mr. Teerlink) consider, having consulted with MeDaVinci's Nominated Adviser, Collins Stewart Europe Limited, that the terms of the investment in Demecal are fair and reasonable insofar as MeDaVinci's shareholders are concerned.

The Panel on Takeovers and Mergers regard of all the vendors of Demecal shares (which includes Carbonnieux Invest B.V., an existing shareholder of the Company) to be acting in concert. Immediately following the issue and allotment of the Consideration Shares, the concert party will hold 20,948,276 ordinary shares, equivalent to 35.7% of the issued share capital of the Company, as enlarged by the issue of the Consideration Shares. Following receipt of written confirmation from two shareholders of the Company who in aggregate hold 54.3% of the present issued share capital, the Takeover Panel has agreed to waive the requirements for a whitewash resolution to be presented to members of the Company.

MeDaVinci Chief Executive, Rob Westerhof, commented,

"The vast majority of people will be familiar with the process of going to the doctor, who then instructs a nurse to take several containers of blood, which is then sent off to a laboratory for analysis. At that point the laboratory then separates the blood from its plasma in order to analyse the plasma. Demecal's system enables that same process to be achieved, to the same extent and quality, but requires only one drop of blood from a simple pin-prick."

For further information please contact,

Rob Westerhof, Chief Executive

Peter Teerlink, ChairmanTel. +31 (0)10 288.43.43Ben SimonsHansard GroupTel. +44 (0) 207 245 1100Hugh FieldCollins StewartTel. +44 (0) 20 7523 8000Notes to Editors:

There are multiple benefits to the Demecal tests. Patients will no longer be required to provide large amounts of blood - often an unpleasant and time consuming process. Doctors will have the advantage of an additional revenue stream as they themselves will be able to perform the procedure rapidly, during the consultation, whilst insurance companies will have significantly reduced reimbursement costs from the blood analysis process. There are further vast opportunities for example through internet sales, whereby consumers will be able to order a test in the mail, perform it themselves and mail it to the laboratory for interpretation. Pharmaceutical companies wishing to obtain large-scale blood samples will be able to do so more easily.

Of the four main target areas of hospitals/service laboratories, retail, health insurance companies and internet sales, Demecal is currently focusing the bulk of its efforts on hospitals/service laboratories and internet sales. The first contracts have already been signed and Demecal has started the first pilot projects.

The complete blood testing market in Europe alone is currently estimated at 3.8 billion laboratory tests and 3.9 billion self tests per year. Both are projected to grow at a rate of 5% per year. The directors of MeDaVinci see no logical reason for the medical industry to continue to employ the existing methods of blood analysis for the majority of these annual tests.