Distribution agreement via Elemental Healthcare

Surgical Innovations Group plc

("Surgical Innovations")

Elemental Healthcare extend Microline inc. distribution agreement

Surgical Innovations Group plc (AIM: SUN), the designer and manufacturer of innovative technology for minimally invasive surgery ("MIS"), announces that its wholly owned subsidiary, Elemental Healthcare Limited, has signed an additional three year exclusive UK distribution agreement with Microline Surgical Inc, Boston USA ("Microline") which was due for renewal on 31 March 2018. Microline manufactures instruments for MIS that are complementary to the Surgical Innovations branded range. The new distribution agreement is expected to generate revenue of an estimated £7m over the duration of the contract.

David Marsh, Group Commercial Director of Surgical Innovations Group plc, commented: "Microline has been one of the cornerstones of the Elemental Healthcare business for the last ten years and we are delighted to continue this partnership. Microline share the same ethos of cost containment and reduction in clinical waste as Surgical Innovations, allowing Elemental Healthcare to provide unique solutions to the NHS and private healthcare providers which make significant savings with procedural kits."

Johan van Doremalen, General Manager EMEA, Microline Surgical BV commented: "Elemental Healthcare has been an important partner for us in Europe for nearly 10 years and we are delighted to continue this relationship with one of the leading MIS distributors in the UK."

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