Acquisition

RNS Number:5157N
Healthcare Enterprise Group PLC
14 June 2005

Healthcare Enterprise Group PLC
("HCEG" or the "Company")



HCEG acquires Fertiligent to extend its range of reproductive health products



HCEG, the international healthcare products and services company, has acquired
2.5% of Fertiligent Limited, ("Fertiligent") with a series of options to acquire
a controlling interest of up to 100% of the ordinary share capital.



Fertiligent develops innovative reproductive health products capable of
significantly enhancing the success rates of existing infertility treatments.
Fertiligent's first product, the IQI-100, is currently undergoing trials in
Europe. HCEG anticipates launching the product commercially in 2006. The Group
estimates that the worldwide market for Fertiligent IQI-100 alone is $250
million.



HCEG, through Fertiligent, plans to develop its suite of reproductive health
products. Last week HCEG made a similarly structured acquisition of MeDilator,
the developer of a single-use, disposable, dilatation devices for the safe
performance of cervical dilatation, without anaesthetic.



The Fertiligent IQI-100, is a pioneering slow-release and real-time sperm
filtration device designed to provide a significantly higher pregnancy success
rate than intrauterine insemination ("IUI") - a procedure sought by more than
1.4 million women each year worldwide. In addition, the slow release technology
developed by Fertiligent could be adapted to a much broader range of procedures
and applications.



Whilst IUI has been a popular option prior to considering more aggressive and
expensive treatments such as InVitro Fertilisation ("IVF"), success rates are
only 12%.  Research has shown that by using the Fertiligent IQI-100 success
rates are in the 30%+ range.  The IQI-100 is fully disposable and will be cost
effective.



The World Health Organization estimates there are 60 to 80 million infertile
couples worldwide. In the U.S., approximately six million couples or 10% of
couples of childbearing age are clinically infertile and expenditures relating
to fertility services are in excess of $2 billion each year.   HCEG estimates
the world market for fertility services to exceed $5 billion by the end of the
decade.



The incidence of infertility has been rapidly growing in the developed world. A
demographic shift toward the deferral of marriage and first birth has increased
the age at which women are first having children. In the U.S., one in every five
women now delay attempts to conceive until after they are 35 years of age and
studies have shown that a 35-year-old woman is almost three times as likely to
be infertile as a woman of 25.



Stuart Bruck, Executive Chairman, Healthcare Enterprise Group PLC, commented:



"We have already had interest from the US and Europe in this revolutionary new
technology for infertility treatment. Not only will it improve pregnancy success
rates but it will reduce procedure times and minimise the potential risks and
subsequent costs associated with more invasive techniques.



"We are delighted with this further acquisition in reproductive healthcare, a
sizeable marketplace with excellent potential for the products we are looking to
commercialise."



                                                                    14 June 2005


Enquiries:


Healthcare Enterprise Group                           020 7351 7500
Lorna Green, Director of Marketing
John Bradshaw, Group Finance Director

College Hill                                          020 7457 2020
Corinna Dorward /Adrian Duffield



Notes


Healthcare Enterprise Group PLC



HCEG is quoted on the UK AIM stock market with its head office in London.   HCEG
is a business engaged in medical product distribution, occupational health,
first aid and medical consultancy markets.  These businesses underpin a range of
innovative medical devices, which will be introduced to the market via HCEG's
own distribution network on an international basis.







                      This information is provided by RNS
            The company news service from the London Stock Exchange
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