RNS Number:9319T
Healthcare Enterprise Group PLC
07 January 2004



                   Healthcare Enterprise Group PLC

    Acquisition of US Healthcare Advisory Firm and Related Interest


Healthcare Enterprise Group PLC ("HCEG") has today acquired Medical Development
Specialists, Inc. ("MDS"), a California-based healthcare advisory company, and
has also acquired from Philip Dalton, Chief Executive Officer of MDS, a 50%
interest in Strategic Creative Solutions, LLC ("SCS"), a healthcare marketing
and advertising firm (collectively, the "Acquisitions").


MDS is a provider of planning, policy, and advisory services to health systems,
hospitals, health plans, businesses, and government.  Through its relationship
with SCS, MDS also provides marketing and advertising services to these
organisations.  Although MDS and SCS were formed in early 2003, they incorporate
substantial expertise from broadly recognised senior healthcare consultants.
The principal purpose of the Acquisitions is to provide HCEG with a proven
platform from which to provide strategic and commercial healthcare advisory
services.


For the ten-month period ended 31 October, 2003, MDS and SCS generated $319,419
and $327,330, respectively, in gross revenues and $51,607 and $100,914,
respectively, in profits.


The acquisition of MDS is structured as a merger of MDS with and into a
wholly-owned subsidiary of HCEG formed especially for the purposes of this
transaction.  The initial consideration for the Acquisitions comprises the issue
of 20,478,374 ordinary shares to the MDS shareholders.  At the current HCEG
share price as at close of business on 6 January 2004 of 1.69p this equates to
an initial value of #346,085.


HCEG has also agreed to pay further contingent consideration by issuing in
installments  up to the lesser of: (i) 100 million shares; or (ii) shares with a
value of $6 million by reference to the relevant market price of HCEG's shares
(and this monetary cap also applies to any shares issued to satisfy any
liability of HCEG under a tax gross up) depending upon the accomplishment of
certain financial milestones of MDS over a three year period.


In addition, Mr. Dalton, the principal shareholder and operator of MDS, will
remain with the business as an employee and will be granted options over 40
million ordinary shares 20 million of which will vest on grant and the balance
over the three-year period.


Stuart Bruck, Executive Chairman, stated:

"MDS provides HCEG with the required position in the market to build its
international healthcare advisory platform that will focus on medical products
and services."

"Philip Dalton, the founder of MDS who brings with him 25 years of successful
commercial healthcare advisory and management expertise to our company, will
report to Michael Low, the Chief Executive of our Advisory and Management
Services business, and spearhead the effort of growing our advisory service
business in the US, UK, and Germany."

"We believe that the acquisition of MDS, under the direction of Philip Dalton
and our management team,  should be accretive to the value of HCEG."


HCEG is an international healthcare services company focused on occupational
healthcare, private healthcare services, and distribution of medical devices.



7 January 2004


Enquiries:

Healthcare Enterprise Group PLC                           Tel: 020 7659 6158
Stuart Bruck, Executive Chairman
Michael Low,
Chief Executive Advisory & Management Services Division   Tel: 001 310 335-0090


College Hill                                              Tel: 020 7457 2020
Alex Sandberg / Nicholas Nelson / Corinna Dorward




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