Notes to the Consolidated Financial Statements

December 31, 1996

1.	SALES
	By Geographical Market	31 December 1994 (10 Months )	31 December 1995 (12 Months)	31 December 1996 (12 Months)	31 December 1996 (12 Months)

		IR£	IR£	IR£	US$
	U.S.A.	3,286,118	5,575,191	3,566,194	6,034,000
	Other overseas	56,874	616,311	661,003	1,118,417
		________	________	________	________
		3,342,992	6,191,502	4,227,197	7,152,417
		________	________	________	________
	All sales represented diagnostic and pregnancy tests sold by Group Companies.
2.	LOSS ON ORDINARY ACTIVITIES
	BEFORE TAXATION
The loss on ordinary activities before taxation is stated after charging (crediting) the following		31 December 1994 (10 Months)	31 December 1995 (12 Months)	31 December 1996 (12 Months)	31 December 1996 (12 Months)
		IR£	IR£	IR£	US$
	Directors' emoluments:
	Fees	-	-	-	-
	Remuneration	81,519	450,742	369,127	624,563
	Auditors' remuneration	25,000	25,000	25,000	42,300
	Depreciation	88,626	96,968	101,323	171,438
	Amortisation	71,089	58,063	7,937	13,429
	Operating lease rentals in respect of premises	31,250	92,406	94,500	159,894
	Research and development grants	-	-	(317,500 )	(537,210 )
		________	________	________	________
The Company paid IR£9,006 (US$15,238) during the year to Dr. Denis Burger for management consulting services including marketing, strategic planning and investor relations.

3.	EXCEPTIONAL ITEMS
		31 December 1994 (10 Months)	31 December 1995 (12 Months)	31 December 1996 (12 Months)	31 December 1996 (12 Months)
		IR£	IR£	IR£	US$
	Administrative expenses
	Licence fee payable	-	(179,222 )	-	-
	Provision for litigation	-	-	(208,800 )	(353,290 )
	Exchange loss	-	-	(230,272 )	(389,620 )
		________	________	________	________
	Other operating income	-	(179,222 )	(439,072 )	(742,910 )
	Gain on investments	470,672	528,042	344,185	582,361
		________	________	________	________
	Write down of assets
	Write off of intangible assets at cost	(1,040,728 )	-	-	-
	Elimination of accumulated amortisation
	of intangible assets	25,655	-	-	-
		________	________	________	________
		(1,015,073 )	-	-	-
		________	________	________	________
Due to adverse movements in the exchange rate between the IR£ and the US$ at 31st December, 1996, the Company incurred a significant unrealised exchange loss on the translation of US$ into IR£ for reporting purposes. In accordance with FRS 3 the exchange loss has been disclosed as an exceptional item.
At 31st December, 1996, the Company made a provision to cover any potential adverse outcome resulting from pending litigation at that time. In accordance with FRS 3 the accrual for litigation costs has been disclosed as an exceptional item.
4.	INTEREST PAYABLE AND SIMILAR CHARGES
		31 December 1994 (10 Months)	31 December 1995 (12 Months)	31 December 1996 (12 Months)	31 December 1996 (12 Months)
		IR£	IR£	IR£	US$
	Finance lease interest	4,060	2,239	1,281	2,167
	Interest payable on bank loans repayable
	by installments	9,273	6,296	1,224	2,071
	Other	6,564	7,206	8,075	13,663
		________	________	________	________
		19,897	15,741	10,580	17,901
		________	________	________	________

The average number of persons employed by the Group in the financial period was fifty two and is analysed into the following categories:
5.	EMPLOYEES AND REMUNERATION

		31 December 1994	31 December 1995	31 December 1996
	Research and development	13	15	23
	Administration and sales	13	11	11
	Manufacturing	18	16	18
		________	________	________
		44	42	52
		________	________	________

	The staff costs comprise:	31 December 1994 (10 Months)	31 December 1995 (12 Months)	31 December 1996 (12 Months)	31 December 1996 (12 Months)

		IR£	IR£	IR£	US$
	Wages and salaries	834,967	933,448	907,842	1,536,069
	Social welfare costs	44,780	60,932	99,492	168,340
	Pension costs	13,637	20,100	38,187	64,612
		________	________	________	________
		893,384	1,014,480	1,045,521	1,769,021
		________	________	________	________
6.	TAXATION
There was no taxation charge due to losses incurred.
7.	PROFIT AND LOSS ACCOUNT
The consolidated profit and loss account reflects the combined results of Group Companies for the year.
As permitted by Section 3(2) of the Companies (Amendment) Act, 1986 the Company has not presented its own profit and loss account. The loss for the financial year dealt with in the profit and loss account of the Company amounted to IR£172,720 (US$292,242) - December 31, 1995 IR£1,115,973 (US$1,888,226).
8.	NET LOSS PER ORDINARY SHARE
Net loss per ordinary share is computed by dividing the loss on ordinary activities after taxation and minority interests of IR£468,204 (US$792,201) - December 31, 1995 IR£519,129 (US$878,366) for the financial period by the weighted average number of ordinary shares in issue of 16,119,559 - December 31, 1995 11,135,753.
Options and warrants issued by the Company have been excluded from the computation of net loss per ordinary share because the effect of their inclusion would be anti-dilutive.

The Company negotiated loans amounting to IR£155,121 (US262,465) secured by a charge over specific items of the Company's plant and equipment. The balance outstanding on these loans at December 31, 1996 is IR£nil (US$nil).
9.	INTANGIBLE ASSETS
		Licences and patents
		IR£	US$
	Cost
	At January 1, 1996	329,497	557,510
	Additions	7,068	11,959
	Translation adjustment	(12,695 )	(21,481 )
		________	________
	At December 31, 1996	323,870	547,988
		________	________
	Accumulated Amortisation
	At January 1, 1996	(303,983 )	(514,340 )
	Charge	(7,937 )	(13,429 )
	Translation adjustment	12,695	21,480
		________	________
	At December 31, 1996	(299,225 )	(506,289 )
	Net book value
	At December 31, 1996	24,645	41,699
		________	________
	At December 31, 1995	25,514	43,170
		________	________
10.	TANGIBLE FIXED ASSETS
		Leasehold improvements	Computer equipment	Office equipment and fittings	Plant and equipment
						Total	Total
		IR£	IR£	IR£	IR£	IR£	US$
	Cost
	At January 1, 1996	235,230	35,377	48,302	764,917	1,083,826	1,833,834
	Additions	-	16,000	16,004	243,175	275,179	465,602
	Disposals	-	-	-	-	-	-
	Translation adjustment	(206 )	-	-	(14,678 )	(14,884 )	(25,184 )
		________	________	________	________	________	________
	At December 31, 1996	235,024	51,377	64,306	993,414	1,344,121	2,274,252
		________	________	________	________	________	________
	Accumulated Depreciation
	At January 1, 1996	(65,223 )	(16,461 )	(12,162 )	(412,463 )	(506,309 )	(856,675 )
	Charge	(23,605 )	(7,909 )	(4,894 )	(64,915 )	(101,323 )	(171,438 )
	Disposals	-	-	-	-	-	-
	Translation adjustment	206	-	-	14,207	14,413	24,387
		________	________	________	________	________	________
	At December 31, 1996	(88,622 )	(24,370 )	(17,056 )	(463,171 )	(593,219 )	(1,003,726 )
	Net book value
	At December 31, 1996	146,402	27,007	47,250	530,243	750,902	1,270,526
		________	________	________	________	________	________
	At December 31, 1995	170,007	18,916	36,140	352,454	577,517	977,159
		________	________	________	________	________	________

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