Nihon Kohden appointed as distributor in Japan

LIDCO GROUP PLC

("LiDCO" or the "Company")

Nihon Kohden appointed as exclusive distributor for LiDCOrapid in Japan

LiDCO Group Plc (AIM:LID), the UK-based hemodynamic monitoring company, is pleased to announce that Nihon Kohden, a pioneer and global market leader in monitoring technology, has been appointed as the exclusive distributor for the LiDCOrapid monitor and disposable kit in Japan. Nihon Kohden will work with LiDCO, and its existing partner Argon Medical Devices, to market and sell LiDCOrapid products in Japan.

Under the terms of the agreement LiDCO has appointed Nihon Kohden as the exclusive distributor of LiDCOrapid monitors in Japan. LiDCO will continue to supply Argon with LiDCOrapid Smartcards, for assembly into kits with Argon's blood pressure transducer with Nihon Kohden being the exclusive distributor of these kits in Japan.

As previously announced regulatory and reimbursement approval for LiDCOrapid has already been received from the Japanese regulators. LiDCO and its partners Argon and Nihon Kohden now have access to the second largest market in the world for hemodynamic monitoring with approximately 680,000 high-risk surgical patients per annum who would benefit clinically from improved intraoperative fluid management.

Nihon Kohden is Japan's leading manufacturer, developer and distributor of medical electronic equipment with direct subsidiaries in the USA, Europe and Asia. The principle of pulse oximetry, a non-invasive measure of blood oxygen levels, was invented by Dr Takuo Aoyagi, a Nihon Kohden scientist. Nihon Kohden will use its extensive Japanese sales network consisting of over 1,000 direct sales staff with over 120 branch offices throughout the country to promote LiDCOrapid.

Dr Terry O'Brien, CEO of LiDCO, commented: "We and Argon are delighted to announce this sales and marketing collaboration with the monitoring pioneer Nihon Kohden. This agreement is aligned with LiDCO's ongoing strategy of increasing sales by predominantly using a distribution route to market. This agreement will give us extensive access to the Japanese anesthesia and surgery markets where Nihon Kohden is already a well established and major presence with a sales force of over 1,000 staff. Japan is a key territory for LiDCO with a potential market for improved intraoperative fluid management disposables of US$285 million per annum."

George Leondis, President of Argon Medical Devices, commented: "We are delighted to partner with LiDCO to expand the range of products we manufacture for Nihon Kohden, our biggest customer in Japan. We believe the LiDCOrapid monitor and disposable kits will advance the quality of patient care in Japan, and we are proud to be a part of that."

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About LiDCO Group Plc

LiDCO is a supplier of minimally invasive hemodynamic monitoring equipment and disposables to hospitals. These products are used primarily for the management of adult hospital patients requiring critical care or at major cardiovascular risk. LiDCO's computer-based technology can significantly reduce the complications (particularly infections) and costs associated with major surgery. The technology was invented in the Department of Applied Physiology based at St Thomas' Hospital, London. LiDCO is based in the UK and its shares are traded on AIM. For more information please see www.lidco.com.

The Company's sales office is in Cambridge, its manufacturing facility / general administration base is in Hoxton, London, and its current products are:

* LiDCOplus is a computer-based platform monitor used in the Intensive Care Unit for real-time continuous display of hemodynamic parameters including cardiac output, oxygen delivery and fluid-volume responsiveness (PPV% and SVV%)

* LiDCOrapid: our new cardiac output monitor designed specifically for use in the Operating Theatre for fluid and drug management. The monitor enables acute-care physicians to get accurate and immediate feedback on the patient's fluid and hemodynamic status - a key measure of overall well-being both during and after surgery. These benefits are:

* LiDCO single-patient-use disposables used in conjunction with the LiDCOplus and LiDCOrapid.

* LiDCOview:an easy-to-use graphical display of historical LiDCOplus and LiDCOrapid hemodynamic data.

* LiDCO's Distribution Network:

The Company sells via its own direct sales force to hospitals in the UK, and in export markets predominantly through a worldwide network of speciality critical care and anesthesia distributors.