Re Agreement

RNS Number:0504F
Healthcare Enterprise Group PLC
10 November 2004


Healthcare Enterprise Group PLC

Optiscope Technologies Ltd Manufacturing Agreement

Optiscope time to market, accelerated through agreement with Wahl Optoparts


Healthcare Enterprise Group announces agreement with Wahl Optoparts GmbH, a
division of JENOPTIKS AG, for the development and manufacture of Optiscope, a
rigid endoscope based on proprietary technology. Optiscope is one of HCEG's key
portfolio technologies.  JENOPTIKS AG is a world leader in photonics
technologies operating out of twenty countries with group sales of Euro3 billion.

Optiscope combines a revolutionary, patented optical design with innovative
plastic manufacturing methods and components, to produce a disposable clinical
product with no compromise to functionality. This gives Optiscope a significant
clinical advantage by removing the risk of cross contamination normally
associated with the re-use of expensive endoscopy equipment. Optiscope's
products will have high quality optics and are planned to be marketed at an
extremely attractive unit cost to hospitals, clinics and general practitioners.
In addition to the elimination of cross contamination, the low price will enable
bulk purchase, thereby streamlining procedures and reducing waiting times.

As part of this agreement, Wahl Optoparts has undertaken to perform a series of
laboratory tests on Optiscope's optic design and plans to introduce, together
with Optiscope, additional elements of its own expertise that will enhance both
the intellectual property and product functionality.  It is thought that the
partnership with Wahl Optoparts will accelerate time to market for the finished
product by nearly a year.  HCEG now anticipates that a commercial product will
be available for FDA inspection by mid 2005.

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

Gabriele Wahl-Multerer CEO, Wahl Optoparts GmbH, commented:

"The relationship with Optiscope provides Wahl Optoparts with an exciting
opportunity to develop our business in optical products and demonstrates our
commitment, as an OEM supplier with a closed process chain, to the international
medical market.

"Wahl's know-how and established procedures will ensure effective development
and manufacture, for example, through giving us 100% traceability throughout the
total production process.   We are extremely excited to be associated with
Optiscope."


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

"This relationship with Wahl represents a pivotal step for Optiscope and sets
out the timetable to market.  Wahl, as part of the mighty JENOPTIKS, should be
viewed as major endorsement and confirms our original belief, that Optiscope has
significant market potential.

"Both Ebiox and Optiscope have received acclaim at the highest levels which will
provide HCEG shareholders with confidence in management's ability as we move to
roll out our new product portfolio."

                                                                10 November 2004


Enquiries:

Healthcare Enterprise Group PLC                               020 7351 7500
Stuart Bruck, Executive Chairman

College Hill                                                  020 7457 2020
Nicholas Nelson/ Corinna Dorward


Note to editors

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

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


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