- Deltex Medical Group is making good progress towards achieving its key financial and operational goals for 2016, shareholders at the annual general meeting today will be told.

Chairman Nigel Keen will say: "The USA is now our key territory for development. We have continued to make good progress towards our target of opening 30 US hospital platform accounts as a precursor to national roll-out of ODM.

"Today we announced our 21st and 22nd US platform accounts and the pipeline of additional platform accounts continues to both develop and grow on track. For the period ended 30 April 2016 US probe revenue in local currency was more than 50% ahead of the corresponding period last year. As previously highlighted one of our original US hospitals has changed its pattern to regular ordering and so a bulk order in Q2 2015 of £100,000 will not be repeated this year resulting in the second quarter growth rate being below the underlying trend.

"Probe revenues in our International business are continuing to grow satisfactorily. Interest in the proven health and economic benefits of our products is increasing in a number of countries, such as Spain, South Korea and Poland, looking to drive value for money in healthcare delivery by focusing on cost effective improvements to patient outcomes.

"In contrast with this increasing growth in our export businesses, ODM sales in our home UK market have declined so far this year, continuing the adverse trends of 2014 and 2015. The Company expects the NHS to remain a very challenging customer for innovative medical technologies for the foreseeable future and so we are focusing on supporting individual doctors both motivated and empowered to use ODM as a standard of care.

"The Company expects the results of two important new trials to become public in each of early June and early July and anticipates that these will reinforce the unique benefits of ODM, as well as building on the momentum established following the release on 4 May 2016 of the new, easier to use, wider beam TruFlow probes. Further positive developments are expected from the introduction of new products compatible with the CardioQ-ODM+ monitoring platform and in addition we will add a small number of additional third party products to our range.

"The Company's key priority this year is to move the business through the cash break-even point at the operating level. The Company has already made substantial progress towards this point through reducing costs and increasing US and International revenues. The Company is focused on increasing further the number of US platform accounts, with the consequent higher probe revenue run rate, improving margins, minimising overheads and adding incremental revenue streams to the business as a whole. The successful implementation of these key tasks will deliver the operating cash required for us to continue to grow our business from our own internally generated resources."

* Deltex Medical Group has added two additional hospital accounts to its platform programme in the US. The first account is a sister hospital of one of our longest established platform accounts.

Deltex responded to increased interest from the additional account in 2015 by allocating clinical support within its dedicated trainer programme. Since then, probe sales have grown steadily and are now running at over 50 probes a month. This account becomes the fifth platform account in the Company's West Coast territory.

The second account comprises two linked facilities in Oklahoma and is the second remote trainer platform account, which the Company is supporting out of its Mid-West territory, with occasional on-site training to supplement the Company's e-learning programmes. The account is the fourth platform account in the territory and is currently using around 35 to 40 probes a month which it expects to increase as it expands its adoption of enhanced recovery surgical programmes.

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