UK Launch of Non-Surgical Medical Device Set to Tackle Epidemic of Diabetes & Obesity

LONDON, October 15, 2010 - Elemental Healthcare, a leading medical devices company that
specialises in providing products for non-surgical treatments, today
announced the UK launch of the EndoBarrier(TM) Gastrointestinal Liner.
EndoBarrier has been designed for people who struggle with the management of
Type 2 diabetes, of which over 2.5 million[i] people suffer in the UK, and
those who are also clinically obese. The introduction of EndoBarrier could
have significant implications on the current burden of diabetes and obesity
care in the UK[ii]. Recently reported clinical data on the EndoBarrier shows
cardiovascular and metabolic improvements as well as significant weight loss
following 12 months of therapy.[iii]

The EndoBarrier is suitable for patients who have Type 2
diabetes with a BMI of 30-50. It is initially being offered to private
patients at St Anthony's Hospital in Surrey and is hoped to become available
on the NHS in due course, following trials at three NHS hospitals[iv].

Clinical trials, involving more than 300 patients to date,
have demonstrated significant diabetes improvement and weight loss with the
EndoBarrier, when combined with certain diet and lifestyle modifications. In
a 12-month study[v], patients fitted with the EndoBarrier, achieved weight
loss of more than 20.0 percent of their total body weight (average loss 22kg
/ 3.5 stone) and amongst patients with Type 2 diabetes, EndoBarrier was able
to reduce blood sugar levels, halting the increase of HbA1c levels seen in
diabetes and potentially reduced the need for medications to control the
disease. The EndoBarrier procedure is quick, incisionless and reversible, and
many patients often go home the day of the procedure. In recent clinical
trials, there have been no serious adverse events.

Mr. Alberic Fiennes, Consultant Bariatric Surgeon at St.
Anthony's Hospital in Surrey said: "This new procedure is pioneering in that
it works as a metabolic regulator directly treating Type 2 diabetes and
associated weight-gain, giving patients a chance to drastically improve their
condition. I was excited when I first heard about EndoBarrier and impressed
at the results produced by clinical studies that showed that as early as the
first week post procedure, patients can experience a significant effect on
their diabetes."

Adam Power, Director of Elemental Healthcare, who is launching the
non-surgical therapy into the UK in an exclusive partnership with GI
Dynamics, the US company responsible for the design of EndoBarrier said: "To
halt the rapid growth of Type 2 diabetes and obesity in the UK represents a
daunting challenge. We believe EndoBarrier provides an innovative approach in
addressing these serious metabolic conditions and could help meet this
challenge. It represents an exciting next step in the way Type 2 diabetes is
managed."

About the EndoBarrier(TM) Gastrointestinal Liner

The EndoBarrier was invented and developed by GI Dynamics of
Lexington, Massachusetts, U.S. A non-surgical therapeutic device that is
placed in the GI tract endoscopically (via the mouth) to create a barrier
between food and the wall of the intestine. It is speculated that this delays
digestion which alters the activation of hormonal signalling, thus mimicking
the effect of the Roux-en-Y gastric bypass[vi] procedure without surgery. The
EndoBarrier remains positioned in the GI tract for a period of up to 12
months until it is removed, again through the mouth, during which time the
patient will have experienced improvements to their diabetes and weight,
often removing the need for pharmaceutical intervention to manage their
condition.

A growing body of preclinical and clinical evidence supports
the potential for EndoBarrier to change the treatment landscape for people
living with one or more of the following conditions: type 2 diabetes, obesity
and at risk for type 2 diabetes, and severe weight problems.

If you are interested in taking part in one of the NHS trials please
email: patients@EBstudy.co.uk or call freephone 0800-096-2418.

For more information about EndoBarrier or to enquire about a private
practice please visit: www.endodiabetes.net

Notes to Editors:

Mr. Alberic Fiennes

Alberic Fiennes trained at St. Bart's Hospital, London and
qualified in 1976. He is currently President of the British Obesity &
Metabolic Surgery Society (BOMSS) and is Consultant General and Bariatric
Surgeon at St. Anthony's Hospital, North Cheam, Surrey. He has been active in
bariatric surgery, both keyhole and open since 1995 and has undertaken over a
thousand procedures, training many fellow bariatric surgeons. He will be one
of the first surgeons in the UK to perform the EndoBarrier procedure.

Elemental Healthcare

Elemental Healthcare Ltd is a leading medical device company
providing innovative solutions in minimally invasive surgery. Working with
market leading companies Elemental Healthcare Ltd has brought together a
unique and exciting portfolio. For more information visit
www.elementalhealthcare.co.uk

St Anthony's Hospital

St. Anthony's will be one of the first hospitals in the UK to
conduct the EndoBarrier procedure. Mr Alberic Fiennes will conduct the
procedure. St Anthony's is a large private hospital close to Sutton and
Epsom, on the borders of Surrey and South London, providing very high quality
healthcare in a calm and peaceful environment. For more information visit
www.stanthonys.org.uk

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[i] Source: Diabetes UK - 2010 statistics. Most of the 2.6 million people
with diabetes have Type 2 diabetes.

[ii] Source: It is estimated that 10% of NHS budgets are spent on
diabetes care (www.diabetes.co.uk/nhs/) and it is estimated
that the cost to the NHS in England of obesity in 1.5% and growing
all the time (www.parliament.the-stationery-office.co.uk/pa/cm200304/cmselect/cmhealth/23/2309.htm)

[iii] Source: Obese Patients Achieved Mean Weight Loss of 20%; Data
Presented at IFSO 2010 World Congress

[iv] Imperial College St. Mary's Hospital, Southampton University
Hospital and Trafford General Hospital, Manchester

[v] Source: Obese Patients Achieved Mean Weight Loss of 20%; Data
Presented at IFSO 2010 World Congress

[vi] The Roux-en-Y gastric bypass is the most common gastric bypass
surgery performed in the world today.

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For further information and interviews with spokespeople, please contact: Vicky Stoakes or Karina Aguirre at Indigo Cow on +44(0)1273-773-516 / +44(0)7747-534-519, vicky at indigocow.com / karina at indigocow.com