Surgical Innovations Regulatory News (SUN)

19 Sep 2005 06:00

Press Release 19 September 2005 Surgical Innovations Group plc Agreement with Rolls-Royce for aero engine inspection technology Surgical Innovations Group plc ("Surgical") ("AIM: SUN"), the designer andmanufacturer of innovative surgical devices, is pleased to announce that it hassigned an agreement with Rolls-Royce plc to develop instruments for use in therepair, overhaul and maintenance of aero engines.Surgical's design team, working in conjunction with Rolls-Royce engineers, hasdesigned and developed patented inspection devices which incorporate advancedsurgical instrument technology. These devices facilitate access to locationsthat are three-dimensionally displaced from the original entry point, enablingthe inspection of internal components of an engine whilst it is installed ontheaircraft. This obviates the need to strip the engine down, in the same way thatkeyhole surgery eliminates the need to open up the body.Surgical plans to support up to five projects a year. Each project undertakenwill be for the design of an instrument for a specific procedure on aparticular engine. Over the course of the agreement, revenue will be generatedby the design process and device sales resulting from each project.In addition, Surgical will receive ‚£800,000 over the ten-year agreement periodfor licensing fees and access to technology. Half of this revenue should bereceived within two years, with the remainder being received via annualpayments.Commenting on the agreement, Doug Liversidge CBE, Chairman of SurgicalInnovations Group plc, said: "Our agreement with Rolls-Royce represents asignificant and innovative step forward for Surgical Innovations. The strengthof our design team is enabling us to adapt our technologies for use in otherindustries."In addition to aero engines, Surgical is actively seeking significantpartnerships in the airframe, energy and nuclear, petrochemical and offshoresectors.For further information:Surgical Innovations Group plc Doug Liversidge CBE, Chairman Tel: +44 (0) 779 889 2918 Stuart Moran, Technical Director Tel: +44 (0) 771 561 2064 stuart.moran@surginno.co.uk www.sigroupplc.comWesthouse Securities Tim Feather Tel: +44 (0) 161 838 9140 tim.feather@westhousesecurities.com www.westhousesecurities.comMedia enquiries:Abchurch Sarah Hollins Tel: +44 (0) 113 203 1340 Justin Heath www.abchurch-group.com sarah.hollins@abchurch-group.com NOTES TO EDITORSSurgical Innovations Group plcSurgical Innovations Group plc was formed in 1998 through a merger of Haemocellplc and Surgical Innovations Limited. Headquartered in Leeds, the Group employsover 40 people and specialises in two key areas:- * Autologous Blood Transfusion (ABT) Products for recycling patients' own blood. * Minimally Invasive Surgery (MIS) Products used in 'keyhole' surgery, more accurately known as laparoscopicsurgery.For the year ended 31 December 2004, Group turnover increased to ‚£3.03m (‚£2.75m) with a pre-tax profit to ‚£174,000 compared to ‚£136,000 in the previousyear.Rolls-Royce plcRolls-Royce operates in four global markets - civil aerospace, defenceaerospace, marine and energy. It is investing in technology and capability thatcan be exploited in each of these sectors to create a competitive range ofproducts. The success of these products is demonstrated by the company's rapidand substantial gains in market share over recent years. The Company now has atotal of 54,000 gas turbines in service worldwide. Rolls-Royce has a broadcustomer base.ENDSURGICAL INNOVATIONS GROUP PLC