Sphere Medical Holding Regulatory News (SPHR)

26 January 2015

Sphere Medical Holding plc

Business Update

Cambridge, UK, 26 January 2015: Sphere Medical Holding plc (AIM: SPHR.L), ("Sphere Medical" or the "Company"), a leading provider of innovative monitoring and diagnostic devices for the critical care setting, today provides a business update.

Commercial update

Proxima 3 was launched into the UK market in September 2014 and commercialisation activities are proceeding according to plan. The Company has received its first intention to purchase from Queen Elizabeth Hospital Birmingham and there are in excess of 20 prospects in the sales pipeline of which 10 product evaluations on patients are planned in Q1 2015. The objective is to build an active customer base leading to recurring revenues.

In addition, Sphere Medical is progressing its plan to commercialise Proxima 3 in Europe in H1 2015. Proxima 3 will be launched at ISICEM in Brussels in March 2015 and sales will be initially targeted within the Netherlands, Belgium and German markets through a small, direct sales team. The considerable experience of the new Medical Advisory Board members is proving instrumental in facilitating entry into these important markets.

Board Appointments

In January 2015 the Company announced the appointment of Meinhard Schmidt and Dr David Martyr to the Company's Board as Non-Executive Directors. These appointments have significantly bolstered the Board with two highly experienced professionals with significant experience in commercialising medical devices as well as a strong business development and M&A track records.

Collaboration with Ortho-Clinical Diagnostics

The Ortho-Clinical Diagnostics Collaboration Agreement continues to progress satisfactorily, focussing on the product enhancements planned for Proxima 4.

Financial update

The Company's financial performance for the period was ahead of budget. The unaudited cash balance at 31 December 2014 was £3.7 million.

Sphere Medical's Chief Executive Officer, Wolfgang Rencken, said: "The Company has clear near-term commercial value drivers: achieve sales revenues for Proxima 3 in the UK and from our initial target European markets; negotiate a commercial deal on Proxima; and launch Proxima 4 in Europe. The recent appointments to our Board of Directors and Medical Advisory Board have endorsed Proxima as well as bringing considerable experience to assist with the delivery of our commercialisation strategy."

For further information, please contact:

Sphere Medical Holding plc Tel: +44 (0)1223 875 222

Dr Wolfgang Rencken, Chief Executive Officer

Matthew Hall, Chief Financial Officer

Peel Hunt LLP Tel: +44 (0)20 7418 8900

James Steel

Clare Terlouw

Jock Maxwell Macdonald

finnCap Tel: +44 (0)20 7220 0500

Geoff Nash / Simon Hicks

Stephen Norcross

Consilium Strategic Communications Tel: +44 (0)20 3709 5700

Mary-Jane Elliott spheremedical@consilium-comms.com

Amber Bielecka

Matthew Neal

Ivar Milligan

Notes for Editors

About Sphere Medical (AIM: SPHR.L)

Sphere Medical is a medical device company developing a range of innovative monitoring and diagnostic devices designed to significantly improve patient care.

Sphere Medical's vision is to become a leading solution provider to the critical care market offering innovative, near real time, point of care diagnostic and monitoring products to enable closer control of therapeutic response and improve patient outcomes and reduce the overall cost of care.

The Company's strategy is focused on developing the Proxima (CE marked device) platform for measuring blood gases, electrolytes and metabolites. The Company is already marketing its Proxima product directly to the critical care market, which includes the ICU and OR, with a dedicated field sales force in the UK. Sphere has plans to follow in Germany and Benelux via a direct sales force in Europe and will work with partners for worldwide distribution.

Sphere Medical's products deliver near real time analysis of blood gases, electrolytes and drug levels with laboratory accuracy, at the patient's bedside. Sphere Medical's products can be used in a wide range of medical applications, enabling faster clinical decision making and improved patient outcomes, whilst reducing costs for healthcare payers.

Sphere Medical entered into a collaboration agreement with Ortho Clinical Diagnostics, Inc. in 2013 for the development of Proxima and enhancement of Sphere's operational and production capabilities.

Sphere Medical has a number of partnerships with industry leading medical device companies and has received a strategic investment from Ortho Clinical Diagnostics (now part of Carlyle Group). Other significant investors include Life Sciences Partners (LSP Life Sciences Fund).

For further information, please visit www.spheremedical.com