Distribution Agreement

RNS Number:8402M
Healthcare Enterprise Group PLC
27 May 2005

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

HCEG signs first distribution agreement for Chinese market

HCEG, the international healthcare products and services Company, has agreed its
first distribution contract in China, with a major Chinese distributor, Chung
Fai International Development Company ("Chung Fai").  The agreement covers the
Beijing area of China with an initial $7 million contract for the distribution
of its Ebiox range of instrument decontamination products.

Chung Fai is one of China's leading distributors with access to 27,000 of the
67,000 hospitals in China.  Chung Fai distributes products aimed at the sterile
services market in China for a number of major international companies including
3M (USA), Medisafe (USA), as well as representing the endoscopic devices of
Tekno (Germany) and the medical imaging products of Kodak (USA).

Ebiox Limited, a wholly owned subsidiary of HCEG, has a range of proprietary
cleansing and decontamination products for use in healthcare and other
industries.  The first product group to be promoted by Chung Fai will be the
instrument decontamination range with sales expected to commence within the next
6 months.

Marketing will begin immediately with Ebiox sponsoring three high-level sterile
services conferences; one in Ghuanzou in June, one in Beijing in August and one
in Shanghai in September.  Thereafter the marketing for Ebiox hand cleansing
products and surface disinfectants will commence with further distribution
contracts entered into for these products at the appropriate time.  Ebiox has
already identified two premier manufacturing facilities to supply products in
China.

HCEG is also in discussions with other partners regarding distribution
agreements for other areas in China.

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

"There has been significant interest in our products from China in relation to
their ability to control the spread of Avian Flu, SARS and HIV.

"Chung Fai gives us a key foothold in the capital city of one of the world's
largest markets.  The total addressable market for Ebiox in China is estimated
to be around US$2 billion.  We are already in discussion with further potential
partners to cover other geographical areas in China.

"We expect revenues to accrue from this agreement towards the end of this
calendar year, as the products attain registration with the Chinese FDA. We have
experienced a great willingness from the authorities to fast-track this process
wherever possible throughout the Asian region."

                                                                     27 May 2005
Enquiries:

Healthcare Enterprise Group                                        020 7351 7500
John Bradshaw, Group Finance Director
Gordon Wood, Group Chief Executive

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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