Surgical Innovations Regulatory News (SUN)

Surgical Innovations Group plc

("SI" or "the Group")

Trading update

Surgical Innovations Group plc (AIM: SUN), the designer and manufacturer of creative solutions for minimally invasive surgery, is pleased to provide the following trading update.

During the year to 31 December 2011 the Group has traded in line with market expectations.

In difficult market conditions SI continued to trade according to plan in the second half of 2011, with a strong fourth quarter. The focus towards development of US opportunities is a major element of the company's strategy, particularly with the current challenges throughout the European market. Orders from the US have continued to grow as a result of strengthened routes to market complementing our Master Dealer's growing distribution network.

The Group has continued to see positive results from its investment program in product development; sales of the innovative PretzelFlex™ laparoscopic retractor have been encouraging following its launch in November. In addition, new handle technology with improved ergonomics for an OEM customer will soon be undergoing clinical evaluations in preparation for launch in the US market.

The concept and development teams have benefited from support from our Clinical Advisory Board, which has been strengthened by three new appointments this month from the fields of general surgery and arthroscopy. We have made advances with our arthroscopy project, and the Group is targeted to introduce a number of new pre-production products at an international arthroscopic clinical congress in the second half of 2012.

The senior management and finance team was strengthened following the appointment of Mike Thornton, formerly a partner at PricewaterhouseCoopers, as Financial Director of Surgical Innovations Limited in December. Mike, who reports directly to Graham Bowland and the Group Board, has already made a positive impact.

Graham Bowland, Chief Executive Officer, said: "SI has made progress in 2011, particularly in the US and in the development and launch of new products. The Group looks forward with confidence."

Preliminary results for the year to 31 December 2011 are expected to be released on 24 April 2012.

- Ends -

For further enquiries:

Surgical Innovations Group plcDoug Liversidge, ChairmanGraham Bowland, Chief Executive Officer +44 (0)113 230 7597

Seymour Pierce Limited

Freddy Crossley/ Sarah Jacobs Tel: +44 (0) 20 7107 8000

Corporate Broking

David Banks / Jacqui Briscoe www.seymourpierce.com

The Communications PortfolioAriane Comstive / Caolan Mahon +44 (0) 20 7536 2028 / 2029

Notes to Editors:

About Surgical Innovations Group plc

Surgical Innovations Group plc specialises in the design and manufacture of innovative devices for use in minimally invasive surgery (MIS) and industrial markets.

As well as manufacturing single-use and reusable instruments for the laparoscopic market, the Group has pioneered its flagship Resposable® instrumentation combining both single use and reusable components, ensuring ongoing revenue streams and delivering the optimum procedure performance to cost ratio.

Over 140 people are employed at the Group's 32,000 square feet facility in Leeds, with in-house design, plastic injection moulding and manufacturing equipment, producing products to the highest quality standards.

The Group's patented products are sold through three main channels:

For more information, see www.sigroupplc.com