LiDCO Group Plc 14 February 2006 For Immediate Release 14 February 2006 LIDCO GROUP PLC ("LiDCO" or the "Company") Trading Update LiDCO Group plc (AIM: LID), the cardiovascular monitoring company, is pleased to announce that the expected net trading loss for the year to 31 January 2006 has continued to reduce and is in line with market expectations. The Company's management remains committed to achieving profitability in the second half of the current financial year. Certain key capital sales orders have taken longer to achieve than previously predicted and are now expected to occur in the current financial year. As a consequence, total revenue for the year to 31 January 2006 is expected to be up to 15% below market expectations of £4 million. However, the Company has achieved significant margin improvements, with the result that the delayed sales have not materially affected the Company's trading losses which continue to be reduced as planned. Following the recently announced further drawdown on the Laurus convertible loan facility, the closing cash position at 31 January 2006 was approximately £1 million. The installed base of monitors has grown during the year from 770 to over 920 and total sales in the year just ended are expected to be approximately 50% higher than the equivalent previous 12 months (noting that the previous reported period was 13 months). The demand for cardiovascular monitoring equipment is growing steadily on a world-wide basis and, within this overall growth in demand, the minimally-invasive market, in which LiDCO is a leading player, is expanding rapidly. Encouragingly, the Company maintains a faster percentage growth rate than its competitors and has made particularly good progress in its major markets of the UK, Europe and USA, where there is the strongest competition. Looking ahead, LiDCO has a strong sales pipeline and is pleased to note a trend in prospective orders towards contracts of a relatively larger magnitude, such as the US$456,000 order announced from the United States Army in November 2005. Commenting on this announcement, Terry O'Brien, Chief Executive of LiDCO, said: "I am pleased to report that LiDCO has made considerable progress in 2005. With high quality technology and an expanding customer base, we remain confident that we shall continue to grow at a similar rate. Management remains highly focused on becoming profitable in the second half of this financial year and looks forward to providing our investors with further information in due course." LiDCO will announce its preliminary full year results on 26 April 2006. ---Ends--- For further information please contact: LiDCO Group Plc Tel: +44 (0)20 7749 1500 Terry O'Brien (CEO) Hugh McGarel-Groves (FD) Financial PR: Buchanan Communications Tel: +44 (0)20 7466 5000 Tim Anderson, Mary-Jane Johnson, James Strong Broker: Panmure Gordon Tel: +44 (0)20 7459 3600 Grant Harrison, Aubrey Powell, Katherine Roe Notes for editors About LiDCO Group Plc LiDCO is a UK-based AIM-traded developer, manufacturer and leading supplier of minimally invasive, computer-based hemodynamic monitoring equipment and disposables used primarily for the management of critical care and cardiovascular risk hospital patients. Use of LiDCO's technology has been shown to significantly reduce the complications (particularly infections) and costs associated with major surgery. The technology was invented in the Department of Applied Physiology based at St Thomas' Hospital, London where the Company maintains a research base. The Company's manufacturing facility is in London, UK and its current products are: LiDCOplus and PulseCO monitors: computer-based platforms for displaying a range of real-time, continuous hemodynamic parameters including cardiac output, oxygen delivery and fluid volume; LiDCO disposables: used in conjunction with the LiDCOplus Monitor to accurately determine cardiac output in a minimally-invasive manner. Distribution Network: The Company has now achieved registration of its products in 13 markets in Europe, the USA, Brazil and Japan. It sells direct to the NHS in the UK, and through a worldwide network of specialty critical care distributors. This information is provided by RNS The company news service from the London Stock Exchange