Acquisition

RNS Number:6171A
Healthcare Enterprise Group PLC
08 July 2004


Healthcare Enterprise Group PLC

Acquisition of Optiscope Technologies Ltd
Proprietary technology for disposable endoscopes

Healthcare Enterprise Group PLC ("HCEG"), the healthcare products and services
company, announces the acquisition of a controlling interest in Optiscope
Technologies Ltd. ("Optiscope"), a developer of disposable rigid endoscopes
using proprietary technology.  HCEG believes that, as the only disposable
endoscope in the market, Optiscope has significant advantages over endoscopes
currently in use, which will underpin the adoption of the product throughout
hospitals and clinics worldwide.

Pursuant to the Acquisition, in exchange for an investment of US$100,000, HCEG,
through its controlling interest in SafaTec (UK) Limited, increased its holding
in Optiscope from approximately 32% to 55% of its outstanding shares.  The
Acquisition entitles HCEG to appoint a majority of the Optiscope Board of
Directors, and gives HCEG purchase and forced sale rights over certain of the
remaining Optiscope shares held by minority shareholders.

An endoscope is a surgical optical instrument for the examination of internal
tissues and organs in the body and is an aid to surgical operations.  According
to research data compiled by HCEG, the worldwide market size for rigid
endoscopes is approximately $165 million per annum and growing.

The cost of a comparable re-useable rigid endoscope incorporating fibre optics
is circa $3,000 per instrument. These are frequently damaged during use,
resulting in costly repairs.  They also require disinfection, decontamination,
sterilization and servicing following each operation and, with a life span of
approximately 200 operations, the estimated cost per use is $40.

Optiscope utilizes a revolutionary, patented method of binging light to the
optical view without the use of expensive and fragile fibre optics. The viewing
tube utilizes plastic lenses thus allowing the Optiscope to be fully disposable
after use. This gives Optiscope a significant clinical advantage as it
completely removes the risk of any cross contamination. Optiscope is expected to
be manufactured at a cost not exceeding $5, thus allowing hospitals the ability
to buy multiple devices and assisting in the reduction of waiting times.

Optiscope is already in early stage discussions with a number of companies, in a
wide range of medical areas, interested in licensing Optiscope products.

Optiscope is a product of the portfolio of research products from SafaTec (UK)
Limited, which was acquired by HCEG in November 2003.

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

"Optiscope provides HCEG with the opportunity to capitalize on the global
distribution of a truly innovative healthcare product.  The cost and ease of use
implications should encourage early adoption.

"We believe that the Optiscope products, as distributed through HCEG's
distribution infrastructure, can capture substantial market position in world
healthcare markets. "

8 July 2004


Enquiries:

Healthcare Enterprise Group PLC                      Tel: [phone]
Stuart Bruck, Executive Chairman
Gordon Wood, Chief Operating Officer

College Hill                                         Tel: [phone]
Nicholas Nelson / Corinna Dorward


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