GYG Gyg Plc

RNS Number:6970X
Gyrus Group PLC
25 June 2002



Embargoed for Release, Tuesday 25 June 2002 - 7.00am (BST)



             GYRUS ANNOUNCES THAT FIRST HALF TRADING

               WILL BE AHEAD OF MARKET EXCPECTATIONS


READING, UK - Gyrus Group PLC, (GYG.L "Gyrus" or "the Group") a world leader in
the management of tissue using less traumatic techniques, will today announce at
their AGM that contrary to market rumours trading in the first half will be
ahead of market expectations.



  • H1 2002 revenue estimate £39-40 will be ahead of market expectations



  • H1 2002 EBITA expected to grow ahead of revenue growth



  • Moving towards positive cash flow position in Q2 2002



  • Gross margins tracking to plan



  • Increasing proportion of sales revenue from non-US business



  • CE Mark received on PlasmaKinetic II System





Commenting on the update Brian Steer, Group Executive Chairman said:



"It is very gratifying to exceed expectations and demonstrate with tangible
results that Gyrus has the right strategy to succeed.  The key is that our
technology does deliver on its promise of improved patient outcomes and cost
benefits.  We look forward to continuing to deliver shareholder value and remain
confident and optimistic about the future."





                    GYRUS ANNOUNCES THAT FIRST HALF TRADING

                     WILL BE AHEAD OF MARKET EXCPECTATIONS



Trading through the first half of 2002 continues to demonstrate the strong
performances seen during the second half of 2001 exceeding market expectations.
This performance was seen across each of the four operating divisions.
Overheads are clearly being leveraged on the growing sales base, with margins
being sustained and estimated EBITA exceeding revenue growth.  Overall the Group
moved from utilising cash in the first quarter to generating cash in the latter
part of the second quarter.



With the continued strong growth at Gyrus Medical Inc supported by three
significant new product introductions during the period, the focus of
development resource was shifted to concentrate on the ENT and Head and Neck
Surgery sectors.  As a result, the introduction of the revolutionary DiegoTM
Microdebrider for less traumatic sinus surgery was achieved ahead of schedule
and the PlasmaKinetic endometriosis application pushed back towards the end of
the year.  Otherwise the Group realised all of the development milestones for
the period, including the recently announced clearance from the FDA for
Somnoplasty tonsil treatment.  Clinical trials on PlasmaKinetic II for cosmetic
surgery commenced in the UK and the system has just received CE Mark.  The
development remains on plan to support US introduction late in 2003.



The Group's PlasmaKinetic technology and its positioning in less traumatic
tissue management continues to receive very positive endorsement from customers.
Generator placements in the US more than doubled in H1 2002 compared to H2
2001 and there is clear recognition of improved patient outcomes.



The Group anticipates positive performance continuing through the second half,
allowing for the seasonality of sales in both its otology and corporate partner
businesses, with growth in Gyrus ENT accelerating towards the end of the year as
the impact of new product introductions starts to take effect.



Notes to editors



About Gyrus

Gyrus Group PLC is a growing medical technology company with principle UK
operations based in Cardiff and Reading. The Group comprises four operational
units: Gyrus Medical Inc. Gyrus Medical Ltd., Gyrus International Ltd. and Gyrus
ENT.



"Meet the Management" day

On Wednesday June 26th Gyrus Group PLC will hold its first "Meet the Management"
day for financial analysts and members of the media at 9:30 a.m.  It will be
held at The City Media Centre of The London Stock Exchange, London EC2N 1HP.



Enquiries:


Gyrus Group PLC                                                Tel: 01189 219720
Mark Goble, Managing Director
Tom Murphy, Finance Director
Christian Williams, Director of Corporate Communications


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


Fleishman Hillard Public Relations                            Tel: 0207 306 9000
Jennifer Ryan







                      This information is provided by RNS
            The company news service from the London Stock Exchange

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