GYG Gyg Plc

RNS Number:5121N
Gyrus Group PLC
22 November 2001

Embargoed for release, Thursday 22 November 2001 - 07.00am (GMT)

Gyrus Group PLC

Announces achievement of cost savings as Somnoplasty(R) sales accelerate to
pre-acquisition levels

Gyrus Group PLC ("Gyrus" or "the Group"), whose innovative medical devices
focus on the management of tissue using less traumatic techniques, today
announces that sales of its Somnoplasty system have grown 37% since July 2001
and are now surpassing pre-acquisition levels on a monthly, like for like
basis.

Key highlights:

*         Gyrus completed the acquisition of Somnus Medical Technologies in
June 2001 and has now completely integrated the business into Gyrus ENT,
realising the forecast annualised savings of $8.1 million.

*         At the beginning of October Gyrus announced that there had been a
slowing of Somnoplasty sales primarily as a result of Somnus terminating some
key promotional campaigns just prior to acquisition.

*         During September 2001 we repositioned the focus of Somnoplasty in
the treatment of obstructive sleep apnoea, a condition now recognised to be
associated with an increased risk of heart disease.

*         As a result of this campaign and the introduction of the product
through the larger sales force of Gyrus ENT, sales of disposables have grown
37% since July 2001 and are now surpassing pre-acquisition levels on a
monthly, like for like basis.

*         Generator placements in October 2001 reached 80, three times the
pre-acquisition rate.

*         Margins on Somnoplasty disposables sales now exceed 65% representing
the 50% reduction in cost of sales identified at the time of acquisition.

Commenting on the announcement, Mark Goble, Group Chief Executive, today said:

"Having completed the integration and repositioning of the Somnoplasty
technology, it is very pleasing to see these positive trends which go a long
way to re-affirming our growth expectations for the treatment of obstructive
sleep apnoea.  The rate of generator placements is particularly encouraging as
this forms the basis for continued growth of Somnoplasty procedures through
next year"

Enquiries:


Gyrus Group PLC
Dr Mark Goble, Group Managing Director               Tel:  02920 776316

Financial Dynamics                                   Tel:  0207 831 3113
Edward Bridges/Sarah Manners

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