RNS Number:8366L
Gyrus Group PLC
03 June 2003

3 June 2003


GYRUS SECURES LICENSING AGREEMENT FOR INNOVATIVE HEARING ENHANCEMENT SYSTEM



READING, UK - Gyrus Group PLC (GYG.L "Gyrus" or "the Group"), a world leader in
the management of tissue using less traumatic techniques, today announces
completion of an exclusive global licensing deal with auric Horysysteme GmbH ("
auric") to sell and market their innovative RetroX sound delivery system.



The patented RetroX system is a unique integration of digital hearing aid
technology with a surgically implanted tube, which is unobtrusively located just
behind the ear.  The system enhances hearing in the higher frequency range for
hearing-impaired patients whilst leaving the ear canal open and unobstructed to
normal sound.



Gyrus believes that, based on the number of patients with high frequency hearing
loss and the selling price of the RetroX system, this deal represents a market
opportunity of approximately $1.4 billion in the US alone.



Gyrus is a world leader in the specialist otology market (surgery performed on
the ear) and in the year ended 31st December 2002, Gyrus ENT reported revenues
in its otology business of $22.3 million in the US.



Selling and promotional activities through Gyrus' established sales and
distribution channels will start immediately since regulatory approvals have
already been obtained by auric in both Europe and the USA.



Gyrus will pay an upfront licence fee of $1 million in cash derived from its
operations as well as royalties to auric on end user sales.



Gyrus will utilise its core competencies to manufacture the implantable titanium
tube at its Memphis facility whilst auric will continue to supply the dedicated
hearing processor that connects to the tube.





Brian Steer, Chairman, Gyrus Group PLC, said: "This innovative new product
provides an opportunity for us to take advantage of our franchise with
otologists and to rapidly grow our sales, with a unique and proven product which
addresses a common condition not fully served by traditional hearing devices.
As RetroX has to be inserted by a surgeon, it will expand their practice and
improve the outcome for the patients both clinically and cosmetically."





Enquiries:


Gyrus Group PLC
Mark Goble, Managing Director                  Tel: 01189 219720
Thomas Murphy, Finance Director


Financial Dynamics                             Tel: 0207 831 3113
Ben Atwell





Notes to editors



About Gyrus

Gyrus is a global leader in the design, manufacture, and marketing of minimally
invasive surgical technologies used in keyhole and conventional surgery. The
Group focuses on the management of tissue using less traumatic techniques during
surgery to reduce cost and improve patient outcomes. The products' emphasis is
on reducing trauma and complications, accelerating patient healing and
facilitating the transition to day case management of procedures that previously
required costly in-patient stay.  Principal products include radio-frequency
energy (PlamsaKineticTM) based systems, microsurgical instruments, powered
dissectors, and implantable biomaterials.



Focusing on head and neck, and lower abdomen procedures, the company's key
customers are ENT surgeons, gynaecologists, urologists and general surgeons.






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

AGRZGGGVVFNGFZG