GYG Gyg Plc

RNS Number:3404S
Gyrus Group PLC
11 October 2000

GYRUS GROUP PLC
("Gyrus" or the "Company")

GYRUS ACQUIRE SKYMED LIMITED ("SkyMed") AND APPOINT NEW SALES DIRECTOR


Gyrus has announced today that it is acquiring SkyMed, a UK company
specialising in the distribution of medical instruments for use in minimal
access surgery. This strategic investment, of up to #850,000, will result in
significant near term benefits for Gyrus.

Highlights

*  SkyMed - with a #1.6 million sales revenue growing at 20% per annum - is a 
profitable business with gross margins in excess of 40%. Operating profits of 
#40,000 are capable of further leverage.

*  David Ball, SkyMed's owner manager, has been appointed Sales Director of
Gyrus Medical fulfilling his ambition to return to a global business. He has
strong sales and marketing skills, having held senior positions in US Surgical
Corp, Baxter Healthcare Inc and Bristol Myers Squibb Inc and bought out the
distribution rights for Pilling Weck in 1996 when founding SkyMed.

*  SkyMed brings to Gyrus an experienced laparoscopic sales team, backed by
strong management and an international customer service and distribution
capability.

*  The entire SkyMed team will remain in place to form the nucleus of Gyrus's
direct business which is now being strongly positioned outside the US.

Chairman, Brian Steer, commenting today said -
"This is an important and exciting acquisition for us which will spearhead a
global sales drive for Gyrus outside the US. The addition of David Ball to our
Senior Management team brings a wealth of sales and marketing experience in
the industry. Our direct business, both in the US and globally, is growing
strongly and I expect that David Ball will rapidly accelerate this growth."

GYRUS ACQUIRE SKYMED LIMITED ("SkyMed") AND APPOINT NEW SALES DIRECTOR

Gyrus has acquired SkyMed Limited, a UK company specialising in the
distribution of medical instruments for use in minimal access surgery.

Gyrus will pay up to #850,000 for the entire share capital of SkyMed Limited. 
On completion the shareholders of SkyMed will receive cash of #300,000 and
shares in Gyrus Group PLC to the value of #300,000 at #3.35p.  The vendors
will not be able to sell these shares until 10th October 2001.  Further cash
consideration of up to #250,000 will be paid on the achievement of sales
related performance targets over the next 18 months.

The net assets of SkyMed at 31st March 2000 were #73,429 and profits on
ordinary activities before taxation for the year ended 31st March 2000 were
#40,146.

SkyMed's Managing Director, David Ball, will join Gyrus Medical Limited as
Sales Director, bringing with him his 30 years of international sales and
marketing experience in the medical industry.  He will be responsible for all
product sales outside the USA.  

Gyrus design, develop, manufacture and market a sophisticated range of
instruments for use in minimal access surgery.  These are commercialised using
a mix of licence agreements, corporate partnerships and direct sales.  At
present direct sales are primarily in the US via a commission only 108 strong
sales force.  In the UK sales are handled by a two man team with distributors
covering other European countries.

SkyMed  distributes instruments for use in minimal access surgery in the UK.
The ranges handled include Everest, Pilling Weck and Microline via a
specialist six strong sales team.

This acquisition brings wide-ranging benefits which strengthen Gyrus's
position in Europe.  In summary -

*  A company with #1.6 million sales revenue growing at 20% per annum.

* A profitable business with gross margins in excess of 40% and operating
profits of #40,000 capable of further leverage.

*  Secure well established distribution agreements.

*  Experience with Everest products as their UK distributor.

*  A highly trained sales force, experienced in laparoscopic sales backed by
excellent commercial management.

*  An established international customer service and distribution capability.

*  An experienced industry executive in David Ball who has been appointed
Sales Director of Gyrus Medical.

*  The SkyMed team will remain in place to form the nucleus of the Gyrus
direct business outside the US.


ENQUIRIES

Gyrus Group PLC                     
John Bradshaw, Finance Director
Analyst/Broker/Shareholder Enquiries
Tel: (01628) 535 815
Fax: (01628) 535 801
E-Mail: john.bradshaw@gyrus.co.uk       

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

BACKGROUND POSITIONING

SkyMed Limited

SkyMed is a highly successful tightly focused sales and marketing organisation
which was established in 1996 to provide a niche service to hospital operating
theatres throughout the UK. 

The company supply state of the art instruments and services for use in
minimally invasive surgical (MIS) procedures and place strong emphasis on
patient safety.

For the year ended 31st March 2000 SkyMed reported sales of #1.6 million,
gross margins in excess of 40% and an operating profit of #40,000 capable of
further leverage.  

The SkyMed sales force is staffed by a team of ex operating theatre nurses
with a full grasp of new and emerging technologies and extensive commercial
experience in the healthcare sector. The company already distributes the
Everest range of laparoscopic products in the UK and a number of other
complementary ranges.

The MIS products currently marketed by SkyMed are well established in
gynaecology and obstetrics, general surgery, cardio-thoracic and colo-rectal
procedures. The use of minimally invasive surgery is growing rapidly and
SkyMed is expanding as new product ranges, which meet their principle of
surgical product safety, become available.

SkyMed was established by David Ball who has worked in the medical industry
for 33 years. Trained as a State Registered Nurse and Clinical Teacher David
joined Baxter-Travenol 25 years ago as a salesman.  He joined Imed Corporation
as International Director of Sales & Marketing in 1982. The company was
acquired by Warner Lambert a year later and Mr Ball joined Autosuture UK, a US
Surgical Inc company, as Managing Director and Vice President. 

In 1989 he joined ER Squibb Pharmaceuticals (later to become Bristol Myers
Squibb) to run their surgical instruments business. At this time the concept
of minimally invasive surgery was gathering momentum and the company formed
Linvatec to exploit this opportunity.  David Ball was appointed European
Business Development Manager. 

When this business was subsequently acquired by Teleflex and vertically
integrated into their Pilling Instrument Division, David Ball was appointed
Director of European Sales & Marketing.  He went on to buy out the
distribution rights in 1996 and SkyMed was formed to capitalise on
opportunities in the rapidly expanding MIS sector.

With the acquisition of SkyMed Gyrus has acquired a highly motivated and
experienced sales force with excellent sales management.  The Gyrus Group
own-branded direct sales business is growing rapidly both in the US and
globally.  The SkyMed team will remain in place to accelerate the growth of
the Gyrus direct sales business outside of the US.  

David Ball has been appointed Sales Director of Gyrus Medical Limited with
responsibility for the sales of all Gyrus Group own-branded products outside
of the US.


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

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