Subsidiary increased holding

RNS Number:4910I
Healthcare Enterprise Group PLC
11 February 2005


Healthcare Enterprise Group PLC

Increased shareholding in Optiscope Technologies Ltd
Development milestones achieved

Healthcare Enterprise Group PLC ("HCEG"), the international healthcare products
and services company, announces agreement to increase its shareholding in
Optiscope Technologies ("Optiscope") to 66.25% for a consideration of $100,000
payable in cash. This follows the achievement of significant development
milestones by Optiscope.

Optiscope has a range of rigid disposable endoscopes and is one of HCEG's key
portfolio technologies.  In November 2004, HCEG, Optiscope and Wahl Optoparts,
part of Jenoptik AG, entered agreement to finalise the development of Optiscope
and bring it to production via a series of pre-agreed milestones leading to the
manufacture of a prototype for clinical testing.  The initial important
performance indicators have been reached resulting in a planned run of 1,000 of
these devices to be available in four to six weeks.

Optiscope combines a revolutionary, patented optical design with innovative
plastic manufacturing methods and components, to produce a commercially viable
and fully disposable surgical endoscope. This gives the device a clinical and
economic advantage, by removing the risk of cross contamination normally
associated with the re-use of expensive re-usable endoscopy equipment.

Optiscope has been technically proven to match or better the performance
criteria of existing re-usable endoscopes.

In addition to the elimination of the cross contamination problem, a key
advantage of the Optiscope products are their low cost per unit. A conventional
laproscopic endoscope retails for approximately $3,000, a significant capital
investment, with cleaning, sterilisation and repair for re-use, at additional
cost and a frequent reason for the creation of bottlenecks in clinical
procedures.  By offering a low cost single use, disposable alternative,
Optiscope provides an economically viable solution for budgetary constrained
hospitals worldwide.

The Optiscope family of products will be made available to hospitals and clinics
at an extremely attractive unit cost.

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

"One of our founding principles is to introduce new products into the
international healthcare marketplace which address an immediate economic and
social need.  Optiscope has huge market potential as it addresses problems
common to overstretched hospitals throughout the world - eliminating cross
contamination and helping to reduce procedure times.

"Optiscope has received modification by Wahl Optoparts and has been bench tested
to exacting standards.  We look forward to the next step towards
commercialisation.

"We anticipate more significant positive news relating to Optiscope in the
future."

                                                                11 February 2005
Enquiries:

Healthcare Enterprise Group PLC                                    020 7351 7500
  Stuart Bruck - Executive Chairman
  Gordon A Wood - COO

  College Hill
  Nicholas Nelson/Corinna Dorward                                  020 7457 2020


Notes to editors

Endoscopy

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 world-wide market size for rigid
endoscopes is approximately four to five hundred million dollars per annum and
growing.

The cost of a re-useable rigid endoscope incorporating fibre optics is circa
$3,000 per instrument. These are frequently damaged during use, resulting in
costly repairs and treatment delays.  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.



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