Interim Management Statement

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LONDON, UK, 21 July 2010 – Optos plc (LSE: OPTS), a leading medical retinal imaging company, today publishes its Interim Management Statement for the nine month period ended 30 June 2010.  All figures are reported in US$ and are unaudited.

Highlights for Q3, the third quarter of the year to 30 September 2010 and the nine months ended June 30 2010 (corresponding figures for Q3-09 and the nine months ended 30 June 2009 in brackets):

  • Total revenues Q3:$24.2m (Q3-09:$24.4m) and year to date $71.5m (Jun-09:$72.2m)
    • PPP (pay-per-patient) revenues Q3: $22.2m (Q3-09: $23.5m), year to date $67.6m (Jun-09:$69.9m)
    • Revenues from capital sales and service contracts Q3 $2.0m (Q3-09 $0.9m), year to date $3.9m (Jun 09: $2.3m)

  • Continued strong cash generation, reducing net debt to $25.9m from $46.2m at the start of the period
    • Reduction of $6.8m in the quarter and $20.3m for nine months to date

  • Focus on asset utilisation continues to yield positive results
    • Average monthly optomaps per site Q3: 110 (Q3-09:105), year to date 110 (Jun-09: 103)
    • Average monthly revenues per site Q3: $2,028 (Q3-09:$2,078) and year to date $2,075 (June 09: $2,047)

  • New business models, pricing initiatives helping retain and renew customer base
    • 109 new installations in Q3, PPP base increased to 3,652
    • 107 sites de-installed in Q3, (approx 1% of PPP base de-install each month)
    • Future minimum payments secured under PPP contracts increased to $180m
    • 24 devices placed on capital sale/finance lease basis, bringing total base to 3,855
    • Renewal rates remain strong (82% for Q3, 84% for rolling 12 months)

  • P200C and P200MA products assisting drive into ophthalmology

  • Development programmes on track
    • 200Dx (P200 device with enhanced imaging) close to launch
    • 200Tx (P200MA with auto-fluorescence capability) on track for late 2010 launch
    • Project Daytona ("desktop" device) progressing well towards potential 2012 launch

The Group's focus on asset utilisation is continuing to improve average usage per site from our core pay-per-patient business. In addition, increased pricing flexibility and the new business models are enabling us to expand our customer base and maintain renewal rates, with more than $180m of future revenues already secured.  Looking forward, as Optos enters the ophthalmology market, the Group anticipates a greater emphasis on capital sales over the PPP rental model.

The positive impact of increased utilisation rates has been offset during the period by a slightly lower installed base year-on-year and a more flexible pricing model which is aimed at rewarding customer loyalty.  Our pricing strategy is aimed at securing a strong and loyal customer base, particularly among major purchasers, ahead of the introduction of new products. This includes allowing customers to move to new contracts and as expected this has impacted average revenues per site in the third quarter.

Roy Davis, CEO, commented: "Optos continued to make solid progress in the three months to the end of June and we aim to meet our target of increasing full-year revenues as capital sales continue to grow alongside pay-per-patient rental revenues.  We are working to further expand our customer base, particularly by targeting growth in Europe and new geographic markets, entering the ophthalmology field with our P200C and P200MA products and constantly reviewing opportunities for new products.  Our strengthening cash position underlines the fundamental health of the business and increases our flexibility to move forward and grow in the years ahead."

Enquiries:

Optos plc
Roy Davis, CEO 
Christine Soden, CFO  (+447870240322) 
 Tel: 01383 843 300
FD
Ben Atwell / Mo Noonan 
 Tel:  020 7831 3113


About Optos Plc

Optos plc is a leading retinal imaging company. Our vision is to be recognised as the leading provider of retinal diagnostics through leveraging our unique wide-field imaging technology. Both eye and non-eye diseases often first exhibit in the periphery of the retina. These are very difficult to detect clinically with conventional examination equipment and techniques. Optos' devices produce ultra wide-field, high resolution images of approximately 82% of the retina, something no other device is capable of doing in any one image. The images provide optometrists and ophthalmologists with enhanced clinical information which facilitates the early detection, management and treatment of disorders and diseases evidenced in the retina such as retinal detachments and tears, glaucoma, diabetic retinopathy and age-related macular degeneration. Retinal imaging can also indicate evidence of non-eye or systemic diseases such as hypertension and certain cancers. Optos has a range of medical devices that support different customer segments and patient levels: the P200 device is concentrated on wellness screening carried out by optometrists and ophthalmologists in primary care; the P200C device is designed to meet the need for more exacting clinical imaging capabilities and standards in secondary care within the ophthalmology market and at optometric practices that are clinically managing a patient base with advanced ocular disease; and the P200MA device supports retinal specialists, working primarily with a diabetic patient base, in the medical care market through an advanced medical angiography procedure. Optos' technology provides an unequalled combination of wide-field retinal imaging, speed and convenience for the practitioner and patient resulting in more targeted treatment regimes and improved patient outcomes.  75% of all blindness can be treated or prevented if diagnosed early enough and our Optos technology supports this objective.

For more information please visit our website www.optos.com

Forward-Looking Statements

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates and projections about its industry, its beliefs and assumptions.  Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the Company's control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.