RNS Number:2614U
Zi Medical PLC
14 January 2004

                  Zi Medical plc ("Zi Medical or the Company")

                  UK Product Launch with Baxter Healthcare and

                Discussions with Other Medical Device Companies

Zi Medical, the AIM quoted medical devices company, announced today that Baxter
Healthcare Corporation ("Baxter") had officially launched the Red-Eye infusion
monitor to the UK hospital market. The success of extensive field trials of the
product in five major UK hospitals has led to this week's full roll-out to
Baxter's UK sales force.

The Company further announces that it is in discussions with two other medical
devices companies for the potential exploitation of its medication delivery
system.

Michael Fort, Chairman, commented

"The development work carried out during the course of the last 12 months is
beginning to bear fruit and Zi Medical has been in discussions with a number of
businesses. We are pleased to be able to announce that Zi Medical has signed
heads of terms with a large international company for the exclusive rights to a
key product in our pipeline and we are confident that this will lead to a firm
contract to commercially exploit the product later in the year."

Zi Medical signed an exclusive, global distribution agreement with Baxter in
June 2003 for Red-Eye and the product launch in the UK is the company's first
step in its strategy to launch a portfolio of innovative and technically
superior products to the global healthcare market. Its strategy is to co-develop
products in partnership with major medical devices companies who are well placed
to achieve rapid penetration of the specialist medical devices market through
their well established sales and marketing resources.

Michael Fort commented

"We are delighted to announce the launch of Red-Eye in the UK, the company's
first major product to be exploited by a major device company. We are
particularly pleased to be partnering a company of the calibre of Baxter whose
sales presence in the global market is second to none. Both companies have put a
serious effort into ensuring the marketing, training and support offered to
customers with Red-Eye is first rate. Although it is too early to say what the
financial impact of launch will be on the company's results, we are extremely
optimistic that this will be a major contributor to the company's future
profitability. In the meantime we will continue to work closely with Baxter to
ensure the successful introduction of the product into the UK market."

Press Enquires:

Michael Fort, Executive Chairman,                            Tel: 020 7448 1000

Zi Medical PLC

Zoe Biddick, Biddicks                                        Tel: 020 7448 1000

Note to Editors

Red-Eye is an innovative patient monitoring device for the gravity-driven
delivery of intravenous solutions. It monitors the safe delivery of intravenous
solutions, and can equally be used for administering saline, pharmaceutical
products and blood. Red-Eye 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
or GSM capability to allow for home care patient monitoring.


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