Surgical Innovations Regulatory News (SUN)

30 Jul 2007 07:01

Surgical Innovations Group PLC30 July 2007 Press Release - final 30 July 2007 Surgical Innovations Group plc ("SI" or "The Group") US Distribution Agreement Surgical Innovations Group plc (AIM: SUN), the designer and manufacturer ofinnovative surgical devices, announces that it has signed a distributionagreement with MGM Med Inc. ("MGM"), a wholesale distributor of medical andhospital equipment, for the provision of its laparoscopic equipment to the USmarket. Under the terms of the agreement, MGM has the right to use the SurgicalInnovations ("SI") name and will promote the SI brand through its newly formedsubsidiary, Surgical Innovations US Inc. ("Surgical US"). Surgical US will become the master distributor of SI branded products in the USand will engage with new key channel partners including surgical procedural traycompanies, major medical distributors and small independent representatives thatservice more than 6,000 hospitals in the US market The agreement incorporates a minimum sales target of US$20 million, net to SI,over the five year term. The agreement has already led to the appointment by Surgical US of its firstchannel partner, Tri-anim Health Services, Inc. ("Tri-anim"), a leadingspecialty distributor of medical and hospital equipment in the US. Tri-animwill begin sales of SI's single use laparoscopic scissors from August 2007,initially in the south east of the US and increasing thereafter on a regionalbasis, eventually providing nationwide coverage. Mary Meyer, President and CEO of Surgical US, said: "The US market for singleuse scissors is currently valued at over US$125 million and we see hugepotential for SI products throughout the entire US laparoscopic equipmentmarket." Graham Bowland, Finance Director of Surgical Innovations Group plc, commented: "The creation by MGM of Surgical US provides new and exciting routes to marketfor SI's products, further expanding our presence within North America. The useof the Surgical Innovations trademark will increase our brand recognition acrossthe US and will support our strategy for future growth." - Ends - For further information:Surgical Innovations Group plcGraham Bowland, Finance Director Tel: +44 (0) 113 230 7597graham.bowland@surginno.co.uk www.sigroupplc.com Hanson Westhouse LimitedTim Feather / Matthew Johnson Tel: +44 (0) 113 246 2610tim.feather@hansonwesthouse.com www.hansonwesthouse.com Media enquiries:AbchurchGareth Mead / Justin Heath Tel: +44 (0) 20 7398 7700gareth.mead@abchurch-group.com www.abchurch-group.com Notes to Editors: Surgical Innovations Group plc specialises in the design and manufacture ofinnovative devices for use in minimally invasive surgery and industrial markets.The Group employs over 50 people and is headquartered in Leeds. The Group's medical division is focused on strong international growth in twospecialist areas namely minimally invasive surgery, where products are used in'keyhole' surgery which is more accurately known as laparoscopic surgery, andproducts for autologous blood transfusion whereby a patient's own blood isrecycled. The Group's industrial division utilises Surgical Innovations' core medicaldevice design expertise and technology in innovative engineering applications. For more information, see www.sigroupplc.com This information is provided by RNS The company news service from the London Stock Exchange