Optos Enters Licence Agreement with University of Rochester for using Adaptive Optics in Retinal Imaging

10/25/2006

LONDON, UK, 25 October 2006 – Optos plc (LSE: OPTS), a leading medical technology company for the design, development, manufacturing and marketing of retinal imaging devices, today announced it has entered into a Licence Agreement (“the Agreement”) with the University of Rochester (Rochester, NY) that provides the Company with exclusive access to certain patents for using adaptive optics to improve the diagnostic capability and resolution of retinal images.

First used to refine the clarity of the most advanced telescopes enabling scientists to observe the furthest stars and galaxies, adaptive optics is now being applied to permit direct observation of individual living cells in the human body as may be observed through the eye.

Two of the world’s leading authorities in adaptive optics for vision science, Professor David R. Williams, Ph.D., Department of Brain and Cognitive Sciences, University of Rochester and Professor Austin Roorda, Ph.D., School of Optometry, University of California at Berkeley, have determined that adaptive optics may allow for the direct observation of the impact and effectiveness of emerging pharmaceutical therapies for the leading causes of blindness and certain, major systemic diseases, including diabetes, vascular and neurological disorders.

“We are excited about this new partnership for a number of reasons, not least of which is that Optos is committed to routine screening of patients to detect disease before irreparable damage to the retina has occurred and in time for therapeutic intervention,” said Professor David R. Williams. “We believe that the ultra-high resolution of the images our adaptive optics technology provides will allow the detection of some diseases even before standard clinical tests and before the patient experiences any symptoms. Optos’ approach is unique in the field of retinal imaging and will therefore allow the full benefit of adaptive optics to be realised.”

“Adaptive optics has the potential to significantly enhance our product offering and overall value proposition in helping eye and health care practitioners deliver state-of-the-art, efficient and altogether higher levels of clinical care to their patients,” said Allan Watson, Optos plc Interim CEO and Chief Financial Officer. “This agreement reflects our commitment to innovation and to maintaining a leading edge position in the field of retinal imaging.”

Under the terms of the agreement the commercial plan calls for product specification approval in December 2007 followed by product development in March 2009, pre-production in September 2010 and commercial market entry planned for September 2013.

ENQUIRIES

Optos plc
John McNeil, Director of Communications & Assistant Company Secretary	+44 (0) 1383 843 337 +44 (0) 7870 240 325
Citigate Dewe Rogerson
David Dible / Kevin Smith / Yvonne Alexander	+44 (0)20 7638 9571
University of Rochester
Jonathan Sherwood	+00 (1) 585-273-4726

NOTES TO EDITORS

Optos plc is a leading and rapidly growing medical technology company for the design, development, manufacturing and marketing of devices that image the retina, the light-sensitive area at the back of the eye. Optos' platform technology is the Panoramic200 Scanning Laser Ophthalmoscope device - known as the P200. In a quarter of a second the P200 device produces a high resolution image of up to 200 degrees or approximately 82 percent of the retina in a single capture. The image - branded the optomap® Retinal Exam - provides eye care practitioners with clinically useful information that facilitates the early detection of disorders and diseases evidenced in the retina, such as glaucoma, diabetic retinopathy and age-related macular degeneration.

The Company has recently gained regulatory clearance (CE and FDA 510(k)) to market a second device - P200MA. The P200MA is aimed at the specialist ophthalmic and medical as opposed to the primary care market. It is designed to produce an angiographic retinal image called optomap® fa that supports medical procedures by providing enhanced diagnostic, monitoring and treatment capabilities. Retinal imaging can also indicate evidence of non-eye or systemic diseases such as diabetes, hypertension and certain cancers. Optos’ technology provides an unequalled combination of wide-field retinal imaging, speed and convenience for both practitioner and patient and can help save sight and save lives.

Optos estimates that its P200 device is targeting a recurring US$2 billion market opportunity. Approximately 8.5 million optomap® Retinal Exams have been conducted in the Company’s existing markets, currently the US, Canada, UK and Germany, to date. Optos had revenues of US$48.4 million in 2005, its last full financial year and as at 31 March 2006 had approximately 220 employees serving more than 2,250 customers. Optos plc is headquartered in Dunfermline, Scotland and was admitted to the Main Market of the London Stock Exchange on 15 February 2006 trading under the symbol OPTS.

University of Rochester

The University of Rochester is one of the nation's leading private universities. Located in Rochester, N.Y., the University gives students exceptional opportunities for interdisciplinary study and close collaboration with faculty through its unique cluster-based curriculum. Its College of Arts, Sciences, and Engineering is complemented by the Eastman School of Music, Simon School of Business, Warner School of Education, Laboratory for Laser Energetics, and Schools of Medicine and Nursing.

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.