RNS Number:3282N
Gyrus Group PLC
09 July 2003

Embargoed for Release, 9th July - 7.00a.m. (BST)


                    GYRUS PRE-CLOSE PERIOD TRADING UPDATE

TRADING AHEAD OF CONSENSUS FORECASTS WITH ACCELERATING GROWTH EXPECTED IN THE
SECOND HALF OF THE YEAR

READING, UK - Gyrus Group PLC, (GYG.L "Gyrus" or "the Group") a leading supplier
of medical devices to reduce trauma and complications in surgery, today
announces a trading update prior to the start of the close period.

Revenue for the six months ended 30 June 2003 will be in the range #37 - #37.5
million which includes a 10% translation impact caused by the continued weakness
of the US dollar.

Direct sales, which exclude sales to corporate partners, grew 14% at a constant
exchange rate.  Growth accelerated in the second quarter following the
reorganisation implemented at the beginning of the year.

EBITA is expected to exceed 10% of revenue in the first half (H1 2002: 8%)
combined with strong cash generation.

About 55% of 2003 revenue is expected to come in the second half driven by a
combination of new product introductions, continued upgrading of our US sales
force and expansion in selected European markets.  More specifically, Gyrus
expects the following factors to stimulate higher levels of growth in the second
half of the year:

  * Increasing adoption of the PK Open Forceps in Gynaecology, Urology and
    General Surgery as volume manufacturing comes on stream.
  * Introduction of the new high performance PK SuperPulse platform in Q3,
    building on the 37% growth (H1 2003:H1 2002) in urology seen in the first
    half.
  * Expanding the Diego microdebrider product line to exceed the 75% growth
    (H1 2003:H1 2002) seen in the Sinus and Rhinology Business Unit in the first
    half.
  * Leveraging the Group's market dominance in otology to rapidly grow sales
    in the $1.4 billion US market for the revolutionary RetroX hearing
    enhancement system.
  * The VAPR 3 Arthroscopic system significantly contributing to a return to
    high single-digit growth for the corporate partner businesses with J&J,
    Guidant and Bard.
  * Expanding in Europe with a direct selling model in selected territories to
    mirror the UK operation which grew the branded business 25% (H1 2003:H1
    2002) in the first half.

Brian Steer, Chairman, Gyrus Group PLC, said: "We continue to reposition the
Group to take advantage of our strengths in technology, sales and distribution.
We are demonstrating the ability to drive revenue in our direct business,
control costs, generate cash and increase profitability, giving us an excellent
platform on which to accelerate our growth to the high teens rate to which we
are committed."

Enquiries:

Gyrus Group PLC
Mark Goble, Managing Director                                Tel: 01189 219720
Thomas Murphy, Finance Director

Financial Dynamics                                           Tel: 0207 831 3113
Ben Atwell

Gyrus will be holding a presentation for analysts at the offices of Financial
Dynamics today at 10.00am.  For further information please call Mo Noonan on
0207 831 3113.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

TSTNKFKDFBKDNOK