Reimbursement approval received in Japan

LIDCO GROUP PLC

("LiDCO" or the "Company")

LiDCOrapid disposable receives reimbursement approval in Japan

LiDCO Group Plc (AIM:LID), the UK-based hemodynamic monitoring company, is pleased to announce that approval has been obtained for reimbursement in Japan of its single patient disposable kit (which contains an Argon pressure transducer and a LiDCO Smart Card) with effect from the beginning of July 2012.

This certification follows Japanese product approval for the LiDCOrapid monitor in May 2012, and the official launch of the monitor and associated disposable kit in Japan, in early June at the 59th Annual Meeting of the Japanese Society of Anesthesiologists.

Under the terms of the reimbursement, LiDCO's single patient disposable kit will be reimbursed at the same rate as the existing disposable product for minimally invasive hemodynamic monitoring in the Japanese market, while offering Japanese customers an easy to use product for the hemodynamic monitoring of surgical and intensive care patients. The reimbursement will comprise a flat fee per disposable kit used with the LiDCOrapid monitor plus an additional smaller procedure fee for the cardiac output / arterial pressure measurement.

Dr Terry O'Brien, CEO of LiDCO, commented: "The Board is delighted to have achieved this step, particularly because we and our Japanese distribution partners believe it is necessary to the development of our business and market share in Japan. This further positive step in Japan follows the recent approval of the LiDCOrapid Monitor, and associated disposable products, by the Japanese Ministry of Health, Labour and Welfare (MHLW).

"Japan is a key territory for LiDCO as it is the second largest market in the world for our products, with approximately 680,000 high-risk surgical patients per annum who would benefit clinically from improved intraoperative fluid management, giving a total potential market value of US$285 million per annum."

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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.