LiDCO Group plc (AIM: LID), the cardiovascular monitoring company, today announces a trading update for the six months ended 31 July 2006 ahead of its interim results which the Company will present on Tuesday 17 October.

The Company has achieved sales of £1.62 million, an overall increase of 3% compared to the same period last year and an increase of 15% in sales from its major territory of the UK.

Revenues generated from the Company’s disposable product sales were promising with an overall increase of 11% to £0.94 million. Sales in the UK increased 8%, in the USA by 2% and in the other more recently established territories of the EC and ROW by 38% and 117% respectively.

Management anticipate that sales in the second half of the year will be strong due to the revenue generation from existing pipeline accounts that were delayed through a later than usual UK NHS capital budget spend and more protracted competitive evaluations in other territories, particularly in the US. The Board are strengthening the LiDCO sales teams both in the USA and the UK during the second half of the year. The increase in these direct sales costs, as well as the intended additional R&D expenditure which was highlighted at the time of the fund raising earlier this year, will have an impact on the Group’s profitability for the full year. The non-cash cost of accounting for share options required for the first time under FRS 20 will also have an effect.

The Company’s management remains confident that the market’s sales expectations for the full year, representing year-on-year growth of 40%, will be achieved.

The Company’s cash position remains strong, following the fundraising in May 2006 and the balance sheet at 31 July 2006 shows a cash balance of approximately £2 million and an undrawn borrowing facility of £1million.

Commenting on this announcement, Terry O’Brien, Chief Executive of LiDCO, said:

“LiDCO has contended with both a delayed NHS budget spend and an increasingly competitive environment in the first six months of 2006/7. Nevertheless we achieved sales growth overall and good progress particularly in the disposable products and new territories. We expect second half sales to be much stronger and indeed saw evidence for this in June and July with deferred capital sales starting to emerge from the sales pipeline in the UK and also the US. I am pleased to report that we are winning evaluations over the competition in a large majority of accounts trialling our technology. Both we and a number of our distributors, are encouraged by the sales results to date and are therefore recruiting more sales staff to further accelerate revenue receipts.”

Notes to Editors

About LiDCO 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.

The Company’s manufacturing facility is in London N1, 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 14 markets in Europe, together with the USA, Brazil and Japan. It sells direct in the USA and UK, and elsewhere through a worldwide network of specialty critical care distributors.