Highlights of Placing

• Approximately £3.7m net is being raised, conditional on shareholder approval, by the placing of 21,056, 632 Ordinary Shares (21.4% of the enlarged share capital) at 19p per share with institutional and other investors.


• The principal objects of the placing are to finance a programme of expanded sales, predominantly in the US, through independent agents and to enable new product applications to be developed and marketed.


• The placing was managed by Durlacher Limited, which is today appointed NOMAD and corporate broker with immediate effect.

US Distribution and Corporate Events

• LiDCO today announces that Heads of Agreement have been signed for the appointment of four regional distributors in the US (which represents approximately 50% of the Company’s potential world-wide sales), which would enable LiDCO to increase the number of salesmen promoting its products in the US from seven at the end of 2003 to approximately 60.


• In May 2004, a contract was signed with Philips Medical Systems to create a communications link between LiDCO’s proprietary stand-alone monitoring system and Philips’ patient monitor.

Financial Highlights of 2003

• Turnover increased by 33% to £2.72m.


• The gross margin increased to 70.2% from 61.9%.


• The pre-tax loss was reduced by 26% to £4.07m, following a 14% reduction in overheads.


• Cash burn was reduced by 54% to £3.4m (pre the £1.0m placing in October 2003).

Commercial Highlights of 2003

• The number of PulseCO/LiDCOplus monitors placed increased by 38% to 291, increasing the installed base by 97% to 591.


• Sensor sales almost doubled to 10,260 from 5,220.


• Hospitals world-wide using the technology increased to over 200, with 25% of UK acute care hospitals having purchased LiDCO’s products.

Dr Terry O’Brien, Chief Executive, stated “The second half of 2004 will see significant expansion in our sales activities, particularly in the US (with the expanded sales force), Japan (following November 2003’s phased launch) and Continental Europe (with implementation of sales following EU mutual recognition approvals). Revenue will increasingly move to a recurring annuity stream from monitor rental income, sensor sales and “fee per use” software - a more easily saleable proposition - rather than capital sales of the monitor.”

Dr O’Brien concluded, “It is clear that there is a considerable market for our products. Over the last few years, the minimally invasive monitoring market has started to develop. Change is desired in the hospital towards portable technologies that can deliver advanced care at lower prices in multiple sites. Our access to customers world-wide will be significantly augmented by the appointment of an expanded sales force of independent agents. We can look forward to accelerated sales growth and further developments designed to expand the market for our platform monitor.”