The Directors have resolved to issue 98,000 new shares at £3/share to enable the Company to complete in-vivo trials. We plan to issue a further larger share tranche in 2 to 3 year's time. The risk of failure with all new medical devices is significant (see warning note below). However, if the in-vivo trials are successful, we believe that the risks will then be reduced. Thus, the tranche that we plan for 2 year's time is expected to be issued at a higher share premium.

The money raised in the current tranche will also help to support work in our subsidiary Haemaflow Ltd. Haemaflow has recently been awarded a Welsh Assembly Government "Single Investment Fund" grant to cover 70% of the cost of the pre-prototype development of its instruments.

Anyone interested in purchasing shares should notify us (see "Contact Us" information). We can supply a recent Business Plan. Potential new investors should be aware that we are legally obliged to give existing shareholders first refusal on any new shares issued. Other things being equal, we also prefer to give potential new shareholders the opportunity to visit our facilities and discuss the benefits and risks.

INVESTMENT WARNING: Investment in private companies such as Haemair carries high risks as well as the possibility of high rewards. It is consequently very speculative and you should be aware that no established market exists for the trading of shares in private companies, and such shares are not easily realisable. It must be appreciated that there could be difficulty in selling such investments at a reasonable price and, in some circumstances, it may be difficult to sell them at any price. Accordingly you should consider very carefully whether such investments are suitable in the light of your circumstances and commitments and the financial resources available to you. Engaging in any investment activity may expose you to a significant risk of losing all of your investment and before investing in Haemair, you are strongly advised to take advice from a person authorised under the Financial Services and Markets Act 2000 who specialises in advising on investments of this nature.