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Hip and Knee Replacements Company Portland Orthopaedics to Raise $5M in New IPO

14 / 11 / 2005

1500 Implants Already as Portland Raises Funds to Accelerate Commercialisation

Sydney, Australia: Portland Orthopaedics, a developer and manufacturer of specialist hip and knee joint replacements is raising $5 million in a new Initial Public Offering to accelerate the rollout of new joint products and boost sales and distribution.

Portland's first product, the DTC Hip, was conceived in 1991 as standard hip implants proved inadequate in cases with substantial bone loss especially where a hip implant had already been inserted. Portland's first hip implant was trialled in 1997 and so far more than 1,500 implants have been sold, the majority in the US and Australia.

Portland has regulatory approval to sell a range of primary, revision and tumour hip replacement products in the US, Europe, Australia, New Zealand and Israel.

Portland is expanding its business from a single product focus into a multi-product orthopaedics company. The Equator Plus cup and a second and complementary range of primary hip replacements are due for market launches in early 2006. A fourth product range of total knee replacement products are also due for release in early 2006. The core technologies are all patented and future applications include shoulders, ankles and other joints.

Portland Orthopaedics managing director, David Sekel said, "The funds raised will be used to expand US distribution, marketing in Asia and Europe, working capital and R&D expenses."

"Portland is targeting unmet demands in segments of the massive US$8 billion reconstructive orthopaedic implants market. This is a high growth market and Portland is offering products with strong points of difference while also providing a suite of joint replacement products".

"The advantages of our core products allow for an easier and quicker procedure by the surgeon, better outcomes for the patient, reduced hospital stays and therefore hospital and healthcare savings. We know this because we have over 5 years track record of implants in US patients and have refined our products".

"Portland has established consulting relationships in the US at respected institutions including surgeons from Yale University, the University of California Los Angeles (UCLA) and Cedars Sinai Hospital in Beverley Hills."

Portland has in-house design and manufacturing facilities in Sydney. All proprietary intellectual property patented and owned by Portland is ready to be used commercially.

The company is offering 20 million shares of $0.25 each, with attached options at 1:4. Axis Financial Group (Australia) Limited are Financial Advisers and Brokers to the Issue. The company will list with a market capitalisation of $33 million. ASX listing is expected in December.

Enquiries:

David Sekel
0411 120 744

Greg Wood
Axis Financial Group
02 9375 0107

Rudi Michelson
Monsoon Communications
03 9620 3333