MDY Mdy Healthcare

RNS Number:1524V
Medisys PLC
4 December 2000

                                                            
                         Medisys PLC
                ("Medisys" or "the Company")
                              
Medisys Acquires the Diagnostics Business of MEDgenesis Inc.
                     for $39.975 million
                              
The Medisys Group announces that it has conditionally agreed
to acquire the assets and certain defined liabilities of the
diagnostics  business of MEDgenesis Inc. ("MEDgenesis")  for
$39.975  million in cash and Medisys ordinary  shares.   The
acquisition   will   expand   significantly   the    Group's
diagnostics interests and establish a strong foothold in the
US  diabetes  monitoring market, the world's largest  market
for blood glucose tests.

MEDgenesis   was  formerly  the  Diagnostics   Division   of
Chronimed  Inc. ("Chronimed), a US based disease  management
and  drug  distribution business.  In March 2000,  Chronimed
announced  that  MEDgenesis  would  be  spun-out  to   allow
Chronimed  to  concentrate  on its  specialty  pharmacy  and
disease management businesses.

MEDgenesis manufactures and markets a range of blood glucose
monitoring  products  used to better manage  diabetes.   The
Chronimed  group  has  held the US licence  for  Hypoguard's
Supreme  glucose monitoring technology since 1993,  and  has
used  this  as the basis for the development of a  range  of
blood     glucose    products    using    colour-reflectance
technologies.  MEDgenesis also manufactures and  distributes
urine  test  strips, used for the diagnosis of  a  range  of
medical conditions, and a variety of general purpose and, in
particular,  safety lancets which are complementary  to  its
core  diabetes  diagnostics business.  In recent  years  the
company  has established a strong position in the  long-term
care market in the US.

MEDgenesis  is  headquartered in Minnetonka, Minnesota,  USA
and  operates two FDA approved manufacturing facilities that
produce the Supreme glucose monitoring strips and the  urine
test  strips,  which are marketed under the Diascreen  brand
name.  MEDgenesis has approximately 125 employees, including
a  strong sales team, which sells nationally throughout  the
US.

In  the  year  ended  30 June 2000 MEDgenesis  reported  net
income attributable to the business of $1.8 million on sales
of   $32.9  million.   Its  most  recent  audited  financial
statements show net assets of $10.5 million at 30 June 2000.

The  consideration by the Medisys Group on closing  will  be
satisfied as to $30.475 million in cash and $9.5 million  in
Medisys  ordinary  shares.   The  equity  element   of   the
consideration is to be based on the average price of Medisys
ordinary shares for five trading days ending on the  trading
day two days before the closing of the transaction.  Medisys
will  fund the cash element from a combination of bank  debt
and internal resources.

The  acquisition  agreement is conditional upon  receipt  of
Hart  Scott  Rodino Act clearance from the US Federal  Trade
Commission  which  it  is  expected  will  be  received   in
approximately  30  days  and  upon  certain  other  standard
conditions to closing for a transaction of this nature.   It
is anticipated that closing will take place by January 2001.


MEDgenesis  will  be integrated into the  Group's  Hypoguard
division and David Conn, President and CEO of Hypoguard will
have management responsibility for the business.

David  Wong,  Chief Executive of Medisys, said: "Acquisition
of  this business is consistent with the intention, outlined
at the Group's last fund raising, of establishing a US sales
presence  for  Hypoguard prior to  the  launch  of  its  new
diabetes   monitoring  products.   In   addition,   we   are
continuing  to  make  good  progress  in  implementing   the
marketing and manufacturing strategies for the Futura safety
syringe, which were also outlined at that time.

"The  acquisition will bring significant strategic  benefits
to  our diabetes monitoring business, giving it entry to the
US  market,  the world's largest, and instant access  to  an
experienced  sales  force with a well  established  customer
base.   This sales and marketing infrastructure and existing
market share will be an ideal platform for the US launch  of
our  pipeline  of  next generation blood glucose  monitoring
products in 2001."


Enquiries:

Medisys PLC                                    020 7663 5602
Michael Barry, Chief Financial Officer

Square Mile Communications                     020 7601 1000
Kevin Smith/Becky Jewers

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