GYG Gyg Plc

RNS No 424h
GYRUS GROUP PLC
24th November 1998


                     Gyrus Group PLC ("Gyrus")
      New Flexible Device To Be Sold Through Johnson & Johnson 

SUMMARY
*  Gyrus, the "PlasmaKinetic" endosurgical device company, announces
the launch of its new range of VAPR Flex(tm) flexible electrodes for
the VAPR(tm) arthroscopic system.  These electrodes, which further
enhance the versatility of the VAPR(tm) system, are to be sold under
its marketing alliance with Ethicon Inc. ("Ethicon"), a division of
Johnson & Johnson.

* The VAPR Flex(tm) electrodes feature a malleable shaft and are
easily shaped by finger tips.  This improves access to hard-to-reach
joint areas by allowing surgeons to customise the shape of the
electrode for each procedure.

* This feature differentiates the VAPR(tm) system from its primary
competitors who only offer rigid shaft electrodes.  The range of
five disposable VAPR Flex(tm) electrodes will attract a 10% premium
on end-user pricing compared to the VAPR(tm) electrodes.

* The first VAPR(tm) system was launched by Gyrus and Ethicon during
the second quarter of 1997, since when Gyrus has sold more than
140,000 electrodes.  The utility of the VAPR(tm) system was
extended in January 1998 by the launch of the VAPR(tm) "T"
electrodes for the thermal remodelling of joint capsules damaged
by repeated injury or dislocation.  The introduction of the new
VAPR Flex(tm) product range, on schedule, further increases the
versatility of the VAPR(tm) system with the aim of maximising
revenue from an installed generator base of over 1,500 units in
the US and Europe.

Mark Goble, Managing Director, commented:

"Having invested in accelerating VAPR(tm) generator installations
over the last year, one of our stated objectives for the current
year was to increase disposable electrode revenues derived from
each installation.  This launch forms an important part of that
plan and should further consolidate the position of our
PlasmaKinetic technology in markets which are together worth
close to $500 million a year."

In August 1996, the Group entered into a development, licence and
supply agreement with Ethicon, a division of Johnson & Johnson,
under which its Mitek(r) affiliate has exclusive worldwide rights
to market, distribute and sell the VAPR(tm) system in the
orthopaedic field. Mitek(r) specialises in surgical devices for
the repair of soft tissue injuries of joints in the arthroscopic
and sports medicine markets.

Sales of VAPR(tm) commenced with shipments to Mitek(r) in April
1997 and first end-user sales in July 1997 in the US.  Roll out
to international markets commenced in October 1997.

The first development to the VAPR(tm) system, the VAPR(tm) "T"
system received marketing clearance under a 510(k) pre-market
notification to the FDA in January 1998.  The launch of a new
family of VAPR Flex(tm) electrodes to augment the existing
electrode forms is the latest in a program of ongoing
developments. These will ensure the continuing success of the
VAPR(tm) arthroscopy system.

The VAPR Flex(tm) electrodes improve access to hard-to-reach
joint areas by allowing surgeons to customise the shape of the
electrode for each procedure. This feature differentiates the
products from its primary competitors who only offer rigid
shaft electrodes.  The range of disposable VAPR Flex(tm)
electrodes will attract a 10% premium on end-user pricing
compared to the VAPR(tm) electrodes and should result in a
further increase in disposables revenue from an installed
generator base which now exceeds 1,500 units.

The Group is developing additional products to further expand
the VAPR(tm) product range as well as the Group's other
product ranges currently on the market which include the
VersaPoint(tm) hysteroscopic system addressing the women's
healthcare market and the Gyrus Endourology system for
treatment of enlarged prostate and other urinary tract
diseases.


Notes to Editors:

Based on radio frequency (RF) energy, Gyrus's PlasmaKinetic
endosurgical technology utilises the conductive properties of
fluids used to distend the operative site during minimal access
surgical procedures.  The capability of controlling and adjusting
power in microseconds enables selection of two tissue effect modes.
In the first mode ionised plasma is created over the active zone
of the tissue treatment electrode.  Tissue entering the intense
kinetic energy of the plasma is instantaneously vaporised and
simply washed away.  The low thermal mass of the plasma prevents
collateral tissue damage adjacent to the application site.  In
the second mode, rapid, predictable and controlled elevations in
tissue temperature can be produced to seal blood vessels or modify
soft tissue structures. 

The first phase of the PlasmaKinetic development addresses
endoscopic procedure applications in three major surgical
specialities; arthroscopic treatment of sports injuries,
hysteroscopic treatment of uterine abnormalities and in
endoscopic urology.  The VAPR(tm) arthroscopic system is
sold under a worldwide agreement with Johnson & Johnson.
The VersaPoint(tm) hysteroscopic system is sold worldwide
through Gynecare, now part of Ethicon Inc following its
acquisition by Johnson & Johnson.  The Gyrus Endourology
system is sold through Gyrus's European sales and marketing
division.  Marketing alliances will be established to address
the US and Japanese markets. 

It is estimated that the markets addressed by the PlasmaKinetic
technology will exceed $500 million per annum by the year 2000.
Products under development could double the market size for
Gyrus' technology over the next couple of years.


END

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