03/09/01

The Medical House PLC announces mhi-500 months ahead of schedule

The mhi-500, the first NEEDLE FREE insulin delivery system to be designed, manufactured and delivered in the UK is months ahead of schedule. This is a new generation of the Vitajet 3 commissioned in a joint project with Bioject, USA in April 2001.

Last year there was an estimated 100,000 - 150,000 needle-stick injuries in the UK. TMH has fast-tracked the mhi-500 to help reduce this number as quickly as possible.

The mhi-500 represents a major milestone for NEEDLE FREE drug delivery systems.

TMH continues to deliver industry-leading growth across the medical sector with this NEEDLE FREE alternative to needle and syringe for insulin dependent diabetics- the mhi-500 - using advanced technology platforms to design, manufacture and deliver the device.

The delivery system has been enhanced by the use of TMH's state of the art equipment such as Unigraphics CAD to create models and the DTM Sinter Station for rapid prototyping.

Improvements incorporated in the the mhi-500 include:

· A significantly lighter, discrete and aesthetically pleasing device;

· A 'clicker', which gives an audible indication of dosage for the visually impaired;

· A sealed cap for hygiene and safety;

· A magnified window for ease of visual dosage;

· Ergonomically designed for improved handling;

· Custom-designed protective hard carrying case

The re-design has produced a new and stylish device that will appeal to consumers, in particular children.

(TMH) has expanded into a new quality establishment that will house an even bigger who will be dedicated to the mhi-500 and the whole process from manufacture to delivery will be carried out in Sheffield, creating more jobs for the local economy.

The mhi-500 will be competitively priced at £120.00 for the device and a weekly cost of c.£1 for consumables, allowing diabetics low cost access to a product which will make managing with their condition significantly more comfortable.

Subject to regulatory approval the mhi-500 will be available for delivery in December 2001.

TMH is also planning on developing a strong new product pipeline which will ignite further growth for the company.

Says Ian Townsend, Chief Executive of The Medical House, "The mhi-500 has completed its design changes and prototype phases. Production tooling is now being made as the first mhi-500s are expected off the production line in October.

To be available throughout the UK, Europe and Egypt, the mhi-500 is already generating a huge amount of interest from insulin dependent diabetics, clinicians and GPs with requests for advanced orders already being made.

TMH is committed to improving people's lives with innovative devices such as the mhi-500 and, in turn, is becoming a major player in the medical devices market."

For detailed information on the mhi-500 and TMH visit the website at www.insulinjet.com or call FREE PHONE 0800 917 7328 (UK) to contact our dedicated support line.

A further significant development in the medical device industry is TMH's development of the Hyperlyser - a device that detects the bacteria Helicobacter pylori which causes stomach ulcers and other gastric complaints. This groundbreaking technology will revolutionise the way that the bacteria can be detected within minutes.

-ENDS-

Background*

More than 10 million people in Europe have diabetes. In the UK around 1.4 million have diagnosed diabetes, of whom an estimated 575,000 need to inject themselves with insulin on a daily basis. It is estimated that an additional one million people in the UK have undiagnosed diabetes.

The number of people with diabetes is rising both in the UK and Europe in response to:

· The increasing age of the population - diabetes becomes more common as people get older;

· Lifestyle - being overweight and inactive increases the risk of developing diabetes;

· Increasing ethnic diversity - diabetes is three to five times more common in the UK among people of Afro-Caribbean and Asian origin. These groups also tend to develop diabetes at a younger age.

*Information taken from data published by Diabetes UK and The European Commission's Innovation in Europe.

The Medical House PLC

The Medical House PLC (TMH), which floated on AIM in 2000, specialises in the design, manufacture and distribution of medical products and devices. The Group's companies include:

Eurocut Ltd (Orthopaedic Instrument Manufacturers)
Hyperlyser Ltd (Breath test for Helicobacter pylori)
Creative Medical Design Ltd (Medical Instrument Design)
Medical House Publishing Ltd (Medical Publishing)

TMH signed an exclusive distribution licence with Bioject Medical Technologies Inc, USA. Under the terms of the agreement, TMH was granted exclusive rights, for an initial five year term, for the distribution of the Vitajet 3, a needle-free injection system for the delivery of insulin in the UK, continental Europe and Egypt.

The Vitajet 3 has been used successfully in the United States since 1996. Patient preference studies conducted by Bioject have shown that patients consistently prefer the Vitajet to a needle-based injection system.

TMH will also be developing a needle-free anaesthetic device to provide patients undergoing dental treatment to have an alternative to needle and syringe delivery. Whilst not only providing a comfortable system, the needle-free device will take the too-often fear out of trips to dentists that occurs.

Currently being developed is the Hyperlyser- a diagnostic aid in detecting Helicobacter pylori. Helicobacter pylori is a bacteria responsible for several common gastric complaints, such as peptic ulcers, recurrent indigestion and heartburn. The Hyperlyser, designed to detect these conditions by measuring levels of ammonia in patients' breath, should significantly reduce the time taken for, the cost of and patients' discomfort during diagnosis. Conventional diagnosis is typically by endoscopy and other expensive or invasive tests, which must be carried out in specialist centres. The Hyperlyser will be similar to a breathalyser and should provide diagnosis in a matter of minutes and be capable of use in a clinic or even at home.

In July 2001 TMH launched Essential Medical World Magazine, a publication for the senior medical professionals in the UK and an associated website, www.essentialmedicalworld.co.uk

TMH intends that Essential Medical World will offer a valuable and concise aid to health professionals looking to keep up to date with medical developments, through the reporting of medical matters currently being published on the Internet. Other areas covered by the magazine are healthcare related business, IT, Personnel and Lifestyle.

Essential Medical World will also provide TMH with a powerful and cost-effective tool for the marketing of its medical devices division. The magazine will be circulated free to both senior medical professionals in the UK as well as pharmaceutical companies, which will create a readership of around 60,000.

Bioject Medical Technologies Inc

Bioject Medical Technologies Inc (Bioject) is an emerging drug delivery company developing technology for needle free injection of liquid medications. Bioject's systems are designed to deliver injected medications comfortable, accurately and quickly - without the use of a needle.