MDY Mdy Healthcare

RNS No 6918b
MEDISYS PLC
20 September 1999

                              Medisys PLC

          Hypoguard Signs Distribution Agreement for Chinese Market

Medisys PLC ("Medisys") announces that its Hypoguard subsidiary has signed a
five-year licence agreement with Shandong Xinhua Medical Instrument Co.
("Shandong Xinhua") for the distribution of its Spectrum blood glucose
monitoring product in China.  Shandong Xinhua is one of the leading
distributors of medical diagnostic products in China and the agreement gives
Hypoguard a strong foothold in this large and fast growing market.

Shandong Xinhua, founded in 1943, is one of the largest and most respected 
medical equipment manufacturers and suppliers in China.  Located in Zibo City,
Shandong Province, the company employs around approximately 1,900 people, and
supplies over 2,000 different products to pharmacies and hospitals nationwide
through a network of 21 sales offices.  

Spectrum is a low cost monitoring system that enables diabetics to monitor
their blood glucose via a quick visual reading.  The test is performed by
placing a drop of blood on a treated membrane which then changes colour as it
reacts with the blood glucose, enabling the user to read the result against a
visual scale.  Spectrum will be the first such reliable, low-cost diabetes
management system available to Chinese diabetics.  Under the terms of the
licence, Hypoguard will sell the Spectrum treated membrane in bulk to Shandong
Xinhua, who will finish off manufacture and distribute the product throughout
China.  Shandong Xinhua has paid Hypoguard #150,000 for the licence and the
agreement is subject to guaranteed minimum volumes in the first two years. 

There are estimated to be 35-45 million diabetics in China and the incidence
of diabetes is expected to rise dramatically as more of the population becomes
exposed to the Western diet.  The current incidence of diabetes in Mainland
China is between 3-4% but in Hong Kong this has risen to 7%.  There is little,
if any, home blood glucose monitoring presently carried out and cost is the
major barrier to the widespread adoption of blood glucose testing in the home.
 

Kurt E. Amundson, President and Chief Operating Officer of Medisys, said;
"China has a very large number of diabetics but the market for blood glucose
monitoring products is largely untapped at present.  Our Spectrum product is a
low cost, easy to use system by design, and it is ideally suited for markets
where diabetes is only now being recognised as a growing health problem.  The
potential of the Chinese market is huge and we are confident that this
partnership with Shandong Xinhua will ensure that Hypoguard is able to build a
leading position in the marketplace."

Mr Li Tongdao, Chairman of Shandong Xinhua, said: "Hypoguard's technology and
support will provide a strong foundation for mutual co-operation that will
allow Shandong Xinhua to market this extremely important product to China's
growing diabetic population."


Hypoguard was advised by Bank of China International (UK) Ltd. ("BOCI"), the
London based investment banking arm of the Bank of China, one of China's 'Big
Four' state owned commercial banks.  BOCI assisted Hypoguard in the initial
identification and evaluation of potential Chinese partners and to negotiate
the terms of the agreement with Shandong Xinhua. 


Note to editors:

Information on Medisys PLC

Medisys PLC develops, manufactures and markets diagnostic, medical and safety
products serving the rapid test and point of care medical market.  The Group
has two principal operating subsidiaries, Hypoguard and Futura Medical,
located in the UK and in the US respectively.  The diagnostic division
develops and supplies blood glucose monitoring systems for the diabetic
market.  Its future focus is on serving unmet medical needs through the
development of diagnostic products based on its own proprietary platform
technologies.  Headquartered in Ipswich, UK, the Group employs approximately
225 people in the UK and US.

Information on Bank of China International (UK) Ltd.

Through its London office, Bank of China International ("BOCI") provides a
full range of investment banking and advisory services to European and Chinese
corporations and institutional investors.  

Enquiries:

Medisys PLC                            
Kurt Amundson, President & Chief Operating Officer       001 650 327 7900
Michael Barry, Chief Financial Officer                   001 770 271 2795

Bank of China International                                 020 7661 8882     
Stephen Speak

Square Mile Communications                                  020 7601 1000
Tim Jackaman/James Melville-Ross



END


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