Placing

RNS Number:6261P
Zi Medical PLC
11 September 2003




ZI MEDICAL PLC ("ZI MEDICAL" OR "THE COMPANY")

PLACING



Zi Medical plc announces that it has raised a total of #538,000, net of
expenses, to fund further development of its product pipeline.

A total of 12,400,000 new ordinary 2p shares in Zi Medical were placed in two
tranches earlier this week with a combination of new and existing shareholders.
The new shares were issued at a price of 4.5 per share.

In June the company indicated that it required between #0.5m and #0.75 million
over a 12 month period in order the exploit its current commercial opportunities
and that it would seek further funding. The placing announced earlier this week
will enable Zi Medical to pursue the development of the innovative devices
already in its product pipeline to commercialisation.

Following the company's decision to seek marketing and distribution partners for
its products, Zi Medical signed an agreement in June 2003 with Baxter Healthcare
Corporation ("Baxter"), one of the world's largest healthcare companies. The
agreement grants Baxter worldwide rights to distribute Red-Eye (TM), Zi
Medical's innovative patient monitoring device for the gravity-driven delivery
of intravenous solutions. Under this agreement Baxter also has access to Zi
Medical's patented technologies to allow for the development of further new
products for fluid delivery. Since signing the agreement the level of pre-launch
activity for RedEye has been encouraging and the company expects to make further
announcements in due course.

Zi Medical has also developed a family of syringe drivers based on its new
patented technology which has solved the problem of detecting back-pressure
common in existing products. The company believes that the exploitation of this
product area offers the shortest route to profitability as there already exists
a very large global market for syringe drivers - estimated at between $0.5
billion and $1 billion.

The company will announce its interim results before the end of the month.

Commenting on the fund raising, Michael Fort, Executive Chairman commented:

"I am delighted that we have been able to announce this funding which secures
the company financially for the foreseeable future. We can now concentrate on
building on the success achieved with RedEye to bring further products to the
point where we can exploit their potential through partnerships with the
established healthcare companies. Our product pipeline is exciting and we hope
to be able to announce further collaboration agreements within the next
quarter."

Press Enquires:

Michael Fort, Executive Chairman,              Tel: [phone]
Zi Medical PLC
Zoe Biddick, Biddicks                          Tel: [phone]







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