Trading Update

RNS Number:2894F
Vivomedica PLC
08 October 2007


For immediate release                                             8 October 2007



                                 VivoMedica plc

                      ("VivoMedica plc" or the "Company")



                                 Trading Update


VivoMedica plc (AIM: VVM), the medical devices company, previously Zi Medical
Plc, is pleased to provide an update on current trading.


Current trading

The Company was pleased to report in its Interim Results, published on 28
September 2007, that the losses relating to its continuing operations had
improved. Losses from the Company's continuing operations in the 6 months to 30
June 2007 were #0.7 million, compared to #0.8 million for the 6 months to June
2006 and #1.5 million for the 12 months to 31 December 2006. Since the period
end, the Company has continued to review and control costs which we expect to
continue at this level in the short term.


Following the successful disposal of the infusion business in Wales (Zimed
Limited) for a maximum consideration of #5 million, the Company received #1.25
million in cash immediately on completion.


Losses of disposed business

As noted in the Interim Results, the losses from Zimed Limited for the 6 months
to 30 June 2007 of #1.9 million (compared to #0.4 million for the 6 months to
June 2006 and #1.1 million for the 12 months to 31 December 2006) were reported
as discontinued operations.


Update on PathScore and DrugPrint(TM)

Progress with the development of PathScore and DrugPrint(TM) has attracted
positive feedback from potential partners and commercialisation discussions and
are now actively being pursued.


Pathscore is a computerised image analysis system comprising a suite of patented
applications that support cancer diagnosis and treatment pathways.  PathScore
continues to gain academic exposure and credibility through a programme of
engagement with the major cancer conference agenda in the UK including an oral
poster presentation which was recently given at the Ninth Nottingham
International Breast Cancer Conference in September. Feedback from the
Conference was very positive, particularly in relation to:


*        The favourable performance of PathScore compared to the Gold Standard
         in grading Breast Cancer

*        The potential to improve this area of Cancer Diagnosis


DrugPrint(TM) is a pre-clinical tool to identify drug-induced cardio-toxicity.
The system consists of patented data collection and analysis tools based on
sophisticated algorithms developed by QinetiQ. It produces a 'fingerprint' that
is then compared to existing data, creating a cardio-toxic profile for the
compound.


DrugPrint(TM) was unveiled to the wider scientific community in September as
members of the DrugPrint(TM) team presented their latest data as a poster
presentation at the Safety Pharmacology Society (SPS) meeting in Edinburgh. This
international conference attracted many of the global safety pharmacology
divisional managers from the US, European and Asian pharmaceutical industry.


The poster described DrugPrint(TM)'s novel approach to identify cardiac effects
of new therapeutic compounds and generated a great deal of positive interest
with many attendees reinforcing the view that the need exists for a technology
like DrugPrint(TM) to help them form comprehensive, integrated risk assessments
for new drugs prior to their first use in man whilst at the same time reducing
reliance on animal testing.


A number of companies expressed a desire to continue discussions after the
conference as to the wider applications of DrugPrint(TM) with a view to
potential collaborations and commercial opportunities. Their interest in the
DrugPrint(TM) system centres on advantages of the system, for example the
DrugPrint(TM) system is ideally suited for emerging technologies using other
cell types including humanised cardiomyocytes.


Commercial and operational team strengthened

The commercial and operational team has been strengthened across a number of
functions including sales and marketing, the appointments of a highly respected
electro-physiologist and a skilled analyst-programmer.


Outlook

Collaboration opportunities for both PathScore and DrugPrint(TM) have been
identified and we have commenced discussions with potential partners. The Board
continues to be confident in the opportunities available for both PathScore and
DrugPrint(TM).


Commenting on today's announcement, Peter Leyland, Chief Executive Officer of
VivoMedica said: "The recently strengthened team at VivoMedica is delighted to
be pushing forward with the development of PathScore and DrugPrint(TM), our two
key products. Both products are attracting significant and encouraging attention
from potential partners and recognition at scientific forums such as the SPS and
the Nottingham International Breast Cancer Conference.  We look forward to
updating shareholders on the Company's progress in the near future."


For further information, please contact:


VivoMedica                                                          01795 414460
Peter Leyland, Chief Executive Officer
Susan Veness, Finance Director

Buchanan Communications                                            020 7466 5000
Tim Anderson / Catherine Breen

Brewin Dolphin Securities (NOMAD)                                  0845 270 8600
Mark Brady / Alison Barrow






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