The Company stated in the interim results announcement in January 2005 that the second half of the financial year ended April 2005 should see a significant overall sales increase both from the level achieved in the first half of the current year and that achieved in the corresponding period last year.

As expected, that improved performance has now been achieved with sales in the second half in US dollar terms:
•  up 44% against H1 this financial year
•  up 32% against H2 last financial year

Excluding the one off benefits recorded last year of SARs related sales in Asia and initial distributor pipeline filling, underlying OPTI sales are up by over 10% in the last 12 months.

Total sales for the full year of approximately $10,863,000 were 4% ahead of last year, although there will be a 9%-10% negative currency translation impact compared to the prior year due to the relative weakness of the US dollar when these dollar based sales are converted into sterling.

As anticipated, Osmetech has begun to see strong volumes flowing through its OEM manufacturing and supply agreement with IDEXX Laboratories, Inc. to provide a customised OPTI CCA analyser, 'VetStat', for veterinary markets.

The VetStat electrolyte and blood gas analyser was first exhibited by IDEXX in January this year and is in the process of being rolled out around the world. Initial interest has been very encouraging and IDEXX has already taken delivery of a greater number of units than expected. On April 29 th , at an investor update, IDEXX announced that it has signed a major five year contract to supply Banfield, the US 's largest private veterinary practice operating from more than 450 locations, with a range of products, including an order for 'VetStat' instruments.

Good progress is also being made with IDEXX on the development and supply contract to create a new platform for measuring critical care parameters based on Osmetech's proprietary optical fluorescence technology. Both IDEXX contracts are for a period of at least 10 years.

The new German sales office, Osmetech GmbH, commenced trading at the start of April and is now the exclusive distributor for OPTI products in this important market. It has achieved a good first month of consumable sales to customers operating the existing installed base of instruments. This direct sales operation should improve the Group's ability to grow more aggressively in the largest European healthcare market when the new OPTI and Opti GENE products are launched.

Since the acquisition of Molecular Sensing plc ('MS') in October 2004, the development of the Opti GENE genetic testing platform has continued on schedule. Osmetech plans to show the Opti GENE instrument for the first time at the AMP (US) and Medica ( Europe ) trade exhibitions in November this year with sales likely to commence in the first half of 2006.

Osmetech has also licensed its proprietary tube technology, used in the Opti GENE device and acquired during the acquisition of MS, to Roche Diagnostics. The worldwide non-exclusive license will enable Roche to develop, manufacture and sell plastic consumable vials for use on its large installed base of LightCycler® instruments as an alternative to existing glass vials.

James White, Chief Executive, Osmetech plc said,

'As anticipated, the second half of our financial year has been strong with OPTI sales hitting our targets.

'Looking ahead we expect continued strong growth through the IDEXX trading relationship and an increased contribution from new OPTI products.

'We are delighted with the progress we have made following the MS acquisition. In addition to the licensing agreement that we have signed with Roche Diagnostics our Opti GENE instrument and assay development programme is on track to deliver a strong point of entry into the fast-growing genetic testing market.

'As well as exploiting the opportunities that we have within our existing portfolio of healthcare diagnostics products, we will also continue to search for other opportunities to grow the business and leverage our operations further through appropriate acquisitions.'

The full year preliminary results for the year ended 30 April 2005 are expected to be announced in July 2005.

Ends

For further information: 
James White, David Sandilands
Osmetech plc   0207 849 6027
 
Matthew Moth
madano partners hip 0207 378 7033