RNS Number:5779M
Zi Medical PLC
20 June 2003


                         
ZI MEDICAL PLC ("the Company")

DISTRIBUTION AGREEMENT


Zi Medical Plc signs worldwide distribution agreement with global healthcare
provider Baxter Healthcare


Zi Medical Plc, the innovative medical devices company, today announces that it
has successfully entered into an agreement with Baxter Healthcare Corporation
("Baxter"), one of the largest international healthcare companies, that gives
Baxter worldwide rights to distribute Red-EyeTM, an innovative patient
monitoring device for the gravity-driven delivery of intravenous solutions. In
addition, under this agreement Baxter will have access to Zi Medical's patented
technologies, which will allow for the development of new products for fluid
delivery.


Baxter Healthcare Limited is the UK subsidiary of Baxter International Inc.
(NYSE:BAX) a global health care company that had 2001 sales of nearly $7.7
billion, and has 48,000 employees in more than 50 countries. Baxter through its
subsidiaries provides critical therapies for people with life-threatening
conditions. Its bioscience, medication delivery and renal products and services
are used to treat patients with some of the most challenging medical conditions
including cancer, haemophilia, immune deficiencies, infectious diseases, kidney
disease and trauma.


Red-EyeTM has gradually been introduced into the UK healthcare market, but this
agreement will allow Baxter's extensive medical sales force to accelerate
distribution in the UK and other countries in Western Europe, with expansion
further afield planned in due course. The potential market size for Red-EyeTM is
large, as 93% of all intravenous delivery mechanisms in Western Europe are
gravity driven.


Red-EyeTM offers healthcare professionals significant benefits in terms of
safety, accuracy, time efficiency and cost. It monitors the safe delivery of
intravenous solutions, and can equally be used for administering saline,
pharmaceutical products and blood. Additionally, Red-EyeTM allows healthcare
professionals to deliver blood and oncology drug infusions via gravity with
greater accuracy than is presently available. Technologies such as Red-EyeTM can
contribute to reducing errors in the delivery of medication, which are estimated
to cost the NHS a significant amount of money in the UK.


Red-EyeTM works by setting off an alarm to alert nursing staff if the flow rate
of intravenous fluids fluctuates beyond a predetermined range, thereby
permitting staff to carry on other nursing duties. The device can be upgraded
with a variety of features such as an illuminated alarm for night use, GSM
capability to allow for homecare patient monitoring and a catheter monitor.


Given the challenges hospitals face in containing costs, Red-EyeTM offers
increased safety in a cost-effective manner, without the need for increased
staff resources.


Zi Medical Chairman Michael Fort said,

"This deal represents a huge opportunity for the Company to further develop and
expand our business in the medical devices sector. It also underlines the
medical and commercial viability of Red-EyeTM, the first in our stable of
products in the patient monitoring market.


"The strict terms of the deal must remain confidential for commercial reasons
but we can confirm that, with Red-EyeTM set for launch in autumn of this year,
the Company can thereafter expect to see the benefit of income from a
combination of product sales and royalties.


"I am particularly excited about the technology collaboration agreement, which
gives Zi Medical a real opportunity to further broaden our portfolio of product
offerings and underlines our ability to develop novel technologies within global
healthcare markets. Developing technologies and creating new products for our
growing product line has always been a key strategy for growth within Zi
Medical.


"We look forward to building upon this important agreement with Baxter, which
has a long and established record of developing and bringing to market new
products from innovative technologies."

Enquiries:

Michael Fort, Chairman, Zi Medical Plc     Tel: 07976 849470
Zoe Biddick/James Benjamin, Biddicks       Tel: 07747 113 930 / 020 7448 1000







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