GYG Gyg Plc

RNS Number:6849D
Gyrus Group PLC
13 January 2000

GYRUS GROUP PLC ANNOUNCES ISSUANCE OF A U.S. PATENT, APPROVAL OF $1.5 MILLION
MILESTONE PAYMENT FROM JOHNSON & JOHNSON AND MANAGEMENT CHANGE


*       Gyrus Group PLC announces today approval of a $1.5 million milestone
payment from Johnson & Johnson following issuance of U.S. Patent 6,004,319 on
21st December 1999.

*       The milestone payment will be recorded as Development Fee Income as of
the date of issuance in the results for the six months ended 31st December
1999.

*       The patent covers key aspects of Gyrus' PlasmaKinetic technology
incorporated in each of the three products currently on the market - the VAPR
system used in arthroscopic surgery (minimal access surgery performed on
joints), the VersaPoint system used in hysteroscopic surgery (minimal access
surgery performed on the womb) and the Gyrus Endourology System used in
minimal access treatment of the prostate gland.   Together these products
address a worldwide market estimated at $800 million.

*      This is the second US patent to issue covering Gyrus' PlasmaKinetic
technology, a third issued two days ago (US 6,013,076) and several other
patents await issuance following Notices of Allowance received in 1999.  

*      Brian Steer, Executive Chairman, is to become full time with immediate
effect in order to dedicate more time to the Company's international
development including  US corporate opportunities.
 

Mark Goble, Managing Director, commented:

"This is an important milestone for us, it further strengthens the
differentiation and proprietary position of our PlasmaKinetic technology in
the market place as well as in the eyes of our principal customer, J&J."

BACKGROUND NOTES 

Gyrus has been at the leading edge of an evolution in the surgical treatment
of diseases using minimal access techniques for the last five years. 
PlasmaKinetic surgery - the name given to the application of Gyrus' new
radio-frequency energy delivery technology - can be uniquely controlled to
remove and modify body tissues using minimal access techniques.  PlasmaKinetic
surgery has been rapidly adopted over the 2 years since it was first
introduced and has been used to perform over 300,000 procedures world-wide.  

The first PlasmaKinetic system, the VAPR arthroscopy system, was launched by
Gyrus and Ethicon, a Johnson & Johnson (J & J) company, in the second quarter
of 1997.  Since then more than 2,500 systems have been installed.  Two new
instrument forms were introduced during 1998 and a small diameter form for
treating knee cartilage in H2 1999.  In September 1999, Gyrus announced a $6
million investment by J&J to accelerate the development of the VAPR system. 
The first products developed under this investment are due to be launched in
Q1 2000. 

The second PlasmaKinetic system, the VersaPoint hysteroscopic system, was
launched shortly afterwards by Gynecare Inc.  Gynecare was subsequently
acquired by Ethicon who now promote the system through their Women's
Healthcare division.  Gyrus has subsequently announced launch of additions to
the range to help accelerate the conversion from open surgery to the minimally
invasive hysteroscopic treatment for excessive menstrual bleeding.   Further
developments of the VersaPoint system are anticipated during the second half
of the year. 

The third PlasmaKinetic system, the Gyrus Endourology System for the treatment
of enlarged prostate glands, was launched in the second quarter of 1998. 
Gyrus sells the system under its own name in Europe.  Results obtained from
nearly 500 cases fully endorse the clinical and economic benefits of the
system.  Surgeons have nonetheless been cautious about committing without
substantial clinical data.  From the positive reaction to outcomes data
presented at recent surgical meetings, we fully anticipate a steady increase
in sales volumes during the second half of the year.  In June 1999 FDA 510(k)
approval was received and negotiations with two potential US distribution
partners are now at an advanced stage.

In the last financial year to 30th June 1999, Gyrus was able to report a 65%
increase in turnover (#9.4 million from #5.7 million), along with a sharp drop
in pre-tax losses (#2.5 million from #4.0 million). 

Gyrus employs 190 people at its headquarters and manufacturing plant near
Cardiff, Wales. The plant includes a 3,000sq. ft. Class 10,000 clean room
where the single use disposables for use with PlasmaKinetic systems are
produced.  The development of an adjacent site, which will increase production
capacity significantly, is nearing completion and the Company is now moving
into its next rapid scale-up phase.

Gyrus Group PLC has its UK headquarters at Gyrus Group PLC., Fortran Road, St
Mellons, Cardiff, Wales CF3 0LT.  Tel: (01222) 300100, fax: (01222) 300101. 
You can also visit the company on the web at: www.gyrus.co.uk

Enquiries

Gyrus Group PLC                            Tel: (01222) 300100
Dr Mark Goble, Managing Director,          Fax: (01222) 300101
or John Bradshaw, Finance Director         E-Mail:john.bradshaw @gyrus.co.uk
(Analyst, Broker, Shareholder 
Enquiries)

Jean Garon PR                              Tel: (01628) 483040
Press Enquiries)                           Fax: (01628) 486796
                                           E-Mail: jean@garonpr.demon.co.uk
END

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