GYG Gyg Plc

RNS Number:0342R
Gyrus Group PLC
6 February 2002

Embargoed for release, Wednesday 6 February 2002 - 07.00am (GMT)

For further information, please contact:

Gyrus                                                        Tel:  01189 219 700
Dr Mark Goble, Group Managing Director
Tom Murphy, Finance Director

Financial Dynamics                                           Tel:  020 7831 3113
Edward Bridges / Sarah Manners


                                 GYRUS GROUP PLC

         New procedure applications for Gyrus PlasmaKinetic technology
                                  - PK Seal -
    address market opportunity valued at over $100 million in the US alone

Gyrus Group PLC ("Gyrus" or "the Group"), whose innovative medical devices focus
on the management of tissue using less traumatic techniques, today announces
that following successful completion of market evaluations at 21 sites in the
US, a new PlasmaKinetic ("PK") instrument - PK Seal - will be launched at the
Group's National Sales Meeting in the U.S. next week.

Initially targeted at both Gynaecologists and Urologists, PK Seal will be
promoted in new niche applications providing an incremental US market
opportunity in excess of $100 million (Company estimates based on published US
procedure).

This introduction leverages the growing installed base of Gyrus' PK systems and
the domination of the Group in the disposable bipolar (PK) laparoscopic market
where it is estimated to have a 76% share of a market currently growing at 24%
to reach $80 million in 2006 (Millennium Research Group: US Laparoscopy 2002).

The power, speed and control of the PK technology have been individually
tailored to maximise the vessel sealing performance of the PK Seal instrument.
Studies have confirmed that even large blood vessels sealed using the
proprietary PK output, can withstand pressures over five times the normal blood
pressure, easily rivalling the use of clips, staples and ligatures.

The Group believes that this approach will minimise trauma, reduce operative
time and the overall cost of procedures such as vaginal hysterectomy, open
hysterectomy and radical prostatectomy.  A pilot analysis conducted at one of
the trial sites indicated a 20% potential saving in operative time.

Commenting on this announcement Dr Mark Goble, Group Managing Director of Gyrus,
said today

"This epitomises our strategy of leveraging leading positions in niche markets
to generate new growth opportunities.   Surgeons can perform an ever increasing
number of procedures using our technology and we expect this to both accelerate
adoption and drive incremental revenues from our installed base of PlasmaKinetic
systems."

Notes to editors:

BACKGROUND AND MARKET UPDATE

PK Seal evaluations were performed by Gynaecologists and Urologists, involving
both new potential accounts and those who already utilise the PlasmaKinetic
Tissue Management system as part of their practice.

•         Gynaecological Applications of PK Seal

Gynaecological laparoscopy, primarily the removal of the uterus (LAVH), is a
niche focus for the Group which, following introduction of the PK system in
March 2001, has expanded to include additional procedure opportunities in the
laparoscopic treatment of adhesions and endometriosis.  This focus has led to
the development of a dominant position in the market for disposable bipolar (PK)
laparoscopic instruments, a market segment in which a recent report estimated
the Group to have a 76% share.

PK Seal builds on this leadership position by enabling the same customer, the
Gynaecologist, to perform more procedures with the PK system.  For every one
LAVH procedure, the same surgeon may perform up to three open or vaginal
hysterectomies.  It is into these higher volume procedure markets that the PK
Seal instrument will be positioned to replace the use of ligatures, clips and
staples, providing an incremental US market opportunity of $100-120M (based on
disposable pricing and published procedure volumes).

•         Urological Applications of PK Seal

The PK system was initially positioned in a niche segment of the transurethral
prostatectomy market, the removal of the enlarged prostate, a condition
estimated to effect over 50% of men over 60 years age (American Foundation for
Urologic Disease). Targeted at the surgical treatment of enlarged prostates
above average size, the positioning reflected changes in the market resulting
from palliative drug management and a corresponding increase in the size of
prostates presenting for surgical treatment.  The Group estimates the value of
this niche in the US and Europe to be approximately $50M and that following full
introduction in 2001 it has achieved a 6% share.  With ten international
publications and presentations endorsing the benefits of the PK technology, the
recent completion of a UK multi-centre study corroborating reduced bleeding and
hospital stay and the treatment of over 10,000 patients; more than 60% of
treatments in the US are now performed on a day case basis.  This adoption has
opened additional opportunities in bladder cancer treatment and now the addition
of PK Seal enables use of the system in open radical prostatectomy and
cystectomy (complete removal of the prostate and bladder, respectively, for
cancer).  In the US this represents a small but highly focused incremental
opportunity of $15M (based on disposable pricing and published procedure
volumes, Medtech Insight, October 2001).

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