A small firm whose medical equipment has revolutionised treatment for premature babies has been honoured in the Queen's birthday list of business awards announced today.

Brighton-based EME has been awarded the coveted Queen's Award for Innovation for its infant flow system.

The product has been developed by the company's engineers working with medical consultants in the field of neo-natal intensive care.

EME employs 57 people at its Gladstone Place base, making masks to supply a mixture of oxygen and air to babies as young as 22 weeks.

The system enables premature babies, some weighing as little as 500g, to breathe without tubes needing to be inserted in their airways.

It is easy to use and allows babies to be taken in and out of incubators without their breathing being disturbed.

It means parents can pick up their premature babies and mothers can breastfeed them, both of which are important parts of the parent-child bonding process.

Steve Foster, managing director of EME, welcomed the award, which was announced today.

He said: "We are absolutely thrilled to receive this honour which acknowledges the hard work and commitment of all our staff in trying to improve the welfare of premature babies.

"As a small but successful British firm we are very proud of our work on the latest infant flow system and are delighted to be regarded as one of the market leaders in supplying innovative neo-natal equipment for the benefit of the medical profession."

EME is among 133 companies honoured by the Queen today in the categories of international trade, innovation and sustainable development.

Southampton Geothermal Heating, based in Crawley, is among those companies which have won awards for sustainable development.

It has developed an air conditioning network, using geothermal energy and combined heat and power, for 20 organisations in Southampton city centre.

The system reduces emissions of carbon dioxide, nitrogen oxides and sulphur dioxide.

A third Sussex firm, VG Systems in East Grinstead, has won an innovation award for developing a sophisticated method of evaporation.

The MBE system uses molecular beams and is capable of running automatically, without being supervised.

Trade minister Richard Caborn said: "Today's winners are some of the creme de la creme of Britain's businesses.

"They are the winners in our own 'Oscars for Enterprise'. With their enterprising spirit and dynamism they exemplify the best of UK innovation and creativity."

The Queen's Awards for Enterprise are the highest honours made to business by the Government and are awarded to both management and employees.