MDY Mdy Healthcare

RNS Number:4320Y
Medisys PLC
15 February 2006



For Immediate Release                                        15 February 2006

                                   Medisys PLC

                          ("Medisys" or the "Company")

                                 Trading Update

In the Company's announcement of its preliminary results on 9th December 2005,
it indicated that it anticipated seeing an improvement in its financial
performance as against trading in the year ended 30th September 2005. In the
first four months of the current financial year the Company has seen
considerable improvement in its trading and financial performance resulting in
the business being effectively cash-flow neutral for the year to date.

This improvement is attributable to a number of factors. The competitive
environment in the Company's long term care blood glucose monitoring business
has not intensified beyond the increased competition seen in the last financial
year. The Company's response of competitive pricing, focussing on customer
service and offering various promotional programmes has enabled the Company to
re-grow its unit sales volume in the segment with the result that these volumes
have now recovered to previous Company highs.

The Company is now also seeing the benefit of the cost saving measures it
implemented in the second half of its last financial year. In addition, the
Company is seeing the benefits of the cost reductions for its proprietary
biosensor products, which include Advance Micro-Draw, from the new production
equipment that was commissioned towards the end of the last financial year.
These further margin improvements have been achieved faster than originally
anticipated at the time of last December's preliminary results announcement.

Menarini

In July 2005, Medisys announced a major strategic alliance with A. Menarini
Industrie Farmaceutiche Riunite S.r.l. ("Menarini"), the fifth largest worldwide
branded marketer of blood glucose monitoring systems. The Company has completed
its development and manufacturing scale up of the first of the new systems it
has specifically designed for Menarini. The system offers market-leading
features including micro blood sample size and quick read-time, together with an
attractive, ergonomically designed and Menarini branded full-featured meter. The
timing of Menarini's market introduction of this product is wholly within its
control and the Company cannot at this stage give any specific indication as to
when this will occur. The Company does however remain of the view that sales of
Menarini branded products are going to be one of its key revenue growth drivers
in the current financial year.

                                    - Ends -

Enquiries:

Medisys PLC                                                      01394 446 717
Dennis Bugg

Weber Shandwick Square Mile                                      020 7067 0700
Kevin Smith/John Moriarty




                      This information is provided by RNS
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