MDY Healthcare plc

Operational review, cost reduction programme and directorate change

20 February 2009: MDY Healthcare plc ("MDY Healthcare" or the "Company"), the strategic investor in healthcare companies, announces that following an operational review, it is implementing a significant cost reduction programme to reflect the Company's current level of assets under management.

Accordingly, as part of this cost reduction programme, the Company has concluded that, given the circumstances, the Company no longer requires a Chief Executive Officer. Consequently, Charles Spicer, the current Chief Executive, has agreed to step down from the Board with immediate effect but will be available to the Company for a transitional period.  Charles will, however, continue to act as MDY Healthcare's representative on the board of SIW Holdings Limited, holding company for Stanmore Implants, one of the Company's key strategic investments. 

Following the implementation of the cost reduction programme, the Board will continue to seek to create shareholder value by extracting and developing the value of the current portfolio and exploring wider strategic opportunities as appropriate.  The Company will update shareholders further at the AGM which is currently scheduled for 22 April 2009.  

David Wong, Executive Chairman said:

"Following an operational review, the Board concluded that we had to significantly reduce the Company's central costs. We would like to thank Charles for his valuable contribution to MDY Healthcare since his appointment in 2006, particularly in building up an excellent strategic portfolio of investments. We wish him every success in his future endeavours." 

Charles Spicer, Chief Executive said:

"As previously reported, the extremely challenging conditions in the capital markets over the last 18 months have materially constrained our capital base and limited our ability to grow our assets. I would like to thank the Board, colleagues, advisers and shareholders for their support over the last 2½ years. As a shareholder, I remain convinced of the long-term value of MDY's portfolio and wish the company well in the future. " 

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Notes for editors:

About MDY Healthcare

MDY Healthcare plc is a sector specialised strategic investing company quoted on AIM (ticker symbol: MDY).  The company seeks to achieve superior returns for shareholders by investing globally in companies, both public and private, across the healthcare sector.  The directors, executives and senior advisors have significant operational and investment experience in the sector and therefore the ability to identify and review a wide range of potential investments.  

Further information can be found on the website www.mdyhealthcare.com.  

MDY Healthcare intends to publish its annual report and accounts for the year ended 30 September 2008 by March 2009. When available, shareholders will be able to download the report and accounts from the website www.mdyhealthcare.com.

RNS news service provided by Hemscott Group Limited.