Ventracor to sell off its e-health division

It seems to me that Ventracor will now effectively be a one trick pony if it sells its ehealth division. This section has provided continuous income (I know that it has not been as productive as was hoped for various reasons) to a company that is burning cash in R and D of its ventrassist cardiac pump. I see this is a negative though I'm sure there are many idealogues out there who think that companies should identify their core activities and carve off the rest. IMHOP this was a core activity. At any rate, I'd be interested to hear others views.

AnnaPVCR : e-Health Division Update
ASX Report
12:10:0252 1/11/2002 Issuer: VCR
VENTRACOR LIMITED 2002-11-01 ASX-SIGNAL-G

HOMEX - Brisbane

+++++++++++++++++++++++++
Ventracor Limited, the heart company (ASX:VCR), toda announced that
it is negotiating the sale of its e-Health Division with a potential
purchaser.

As announced to the ASX on 8 th August 2002, Ventracor received an
offer from a consortium including employees for the assets of this
Division.

After reviewing alternative strategies for the Division, the Board of
Ventracor engaged the independent services of Ernst and Young to
assist in a worldwide assignment to ascertain the best outcome for
shareholders including the identification of potential purchasers or
partners.

Managing Director and CEO, Mr Michael Spooner, said that "following
an extensive search in Australia and overseas, Ventracor now
announces that it is negotiating with the party who tendered the best
indicative offer.

"In the process of the search, the original consortium retracted its
offer and is not the party involved.

"Ventracor expects to announce the terms of a sale agreement as soon
as negotiations with the potential buyer have been finalised. The
terms of the offer are confidential and subject to contract
finalisation, which is expected within the next month.

"In reviewing the options available to Ventracor, the Board believes
that the company's resources will be greatly enhanced by focusing on
the significantly larger market associated with the company's
VentrAssist(TM) heart assist technology and related opportunities.

"The company has made significant progress, particularly over the
past several months in terms of structuring for the future success of
the VentrAssist(TM) heart assist device. All milestones set have been
achieved and Ventracor remains on track for submission to the
hospital Ethics Committee of The Alfred hospital in Melbourne to seek
approval to commence human implants" Mr Spooner said.


For further information, please contact:

Michael Spooner John Massey
MANAGING DIRECTOR AND CEO CHAIRMAN
Ventracor Limited Ventracor Limited
02 9406 3107 (07) 3868 4958