At today's Annual General Meeting of Healthcare Enterprise Group PLC (AIM: HCEG, 'HCEG' or 'the Group'), the international healthcare products group, the Chairman of the Group will make the following statement to shareholders:

 

'Since the Group published its results on 31 May 2007, the focus of our efforts continues to be to  maximise shareholder value across the Group and, supported by our bank, to position the Group for a return to break-even and profitability.

 

'The Group's principal trading business Crest Medical, has been stabilised and although operating costs have been reduced further year on year, Crest continues to operate at a loss. During the current year service levels have improved and with sales and procurement initiatives presently underway, management is confident that the business will resume profitability later in the current financial year. The business continues to look at new products and markets as a way of leveraging its logistics capacity.

 

'Ebiox products continue to achieve greater recognition and sales growth in the decontamination and disinfectant market. Sales to Sultan Healthcare have commenced and additional distribution agreements have been entered into in Benelux and certain countries in the Far East.

 

'The focus for Ebiox is to now gain market penetration in North America.
Following the EPA approvals received earlier this year for the sprays,
concentrates and wipes, the Group is proceeding to gain individual US state approvals paving the way for commercial agreements in these territories.

 

'The Group continues to evaluate ways in which it may realise value from its investment in Optiscope.  An external consultant has been engaged to advise on improvements to the 10mm version of the laparoscope and a three month programme is presently underway to achieve these improvements.  Following completion of this project the Group will resume discussions for a partial or total disposal if its interests in Optiscope.

 

'Trials of the Fertiligent product in Turkey have now commenced. A new style product shape is currently being designed and a new eight hour version of the products is currently being developed. Following completion of the trials in Turkey, the Group plans to commence commercialisation of the product through continuing discussions with major distributors in Europe and North America.

 

'A corporate finance firm has recently been appointed to manage the planned disposal of the Group's CICS dental products business. A confidential information memorandum is currently being finalised with marketing to commence in the next few weeks.

 

'The Group is in active discussions to realise its investment in Ridgecrest. A further announcement will be made at the appropriate time.

'The Board and management are focused on restoring the Group to break-even and sustainable profitability at the first available opportunity.'

 

Healthcare Enterprise Group                              
Lyndon Gaborit, Executive Deputy Chairman
+ 44 (0)1925 898 200

 

Numis Securities
David Poutney
+44 (0) 20 7260 1000 

                                    

College Hill                                             
Adrian Duffield
Corinna Dorward
+44 (0) 20 7457 2020