THE MEDICAL HOUSE PLC

Signs exclusive European distribution licence for needle-free

injection system with Bioject Medical Technologies, Inc.

The Medical House PLC ("TMH"), the medical devices and equipment company, is pleased to announce that it has signed an exclusive distribution licence with Bioject Medical Technologies, Inc. ("Bioject"). Under the terms of this agreement, TMH has been 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.

Bioject has also selected TMH as its development partner for a second generation of the Vitajet 3 (For the delivery of Insulin) and for a needle-free injection system for administering anaesthetic to patients undergoing dental treatment.
Bioject (NASDAQ: BJCT) is a US drug delivery company developing the world's leading technology for needle-free injection of liquid medications.

Vitajet 3
The Vitajet 3 is an easy-to-use, economical, needle-free injection system for the delivery of drugs into the body. It works by forcing liquid medication, which does not require reformulation, through a small orifice that is held against the skin. This creates a very fine, high-pressure stream of medication that penetrates the skin and is deposited into the tissue beneath.

Researchers have for some time been looking for effective, non-invasive ways in which to administer Insulin and other drugs. In addition to needle-free injection systems, possible methods include nasal and oral sprays, patches, tablets and inhalers. However, the Directors of TMH believe that none of these give such accurate dosage and offer patients the ease of use of the Vitajet 3.

The Vitajet 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.

Backgound*
More than 10 million people in Europe have diabetes. In the UK, around 1.4 million people 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-Carribean and Asian origin. These groups also tend to develop diabetes at a younger age.

*Information taken from data published by Diabetes UK (formerly British Diabetes Association) and The European Commission's Innovation in Europe.

Second Generation System
Bioject has also selected Creative Medical Design ("CMD"), a TMH group company, to jointly design and develop a second generation Vitajet 3. CMD was chosen because its technology will significantly reduce the time and cost of developing the product. CMD owns state of the art CAD CAM Unigraphics software and a Rapid Prototyping machine.

Dental Treatment System
In addition, TMH has been selected to develop a needle-free injection system for administering anaesthetic to patients undergoing dental treatment. Local anaesthesia plays an integral role in many dental treatments and the use of a needle-free injection system should help to prevent "dental phobias" amongst patients. According to research carried out by the British Psychological Society, one in 10 people fears dental work so much that they avoid going to their dentist altogether.

Ian Townsend, CEO of The Medical House commented:
"This agreement holds enormous potential for The Medical House. The Vitajet 3 has a proven track record in the US and we are well placed to be a leader in the fast growing Europe-wide insulin and dental markets.

"As I reminded shareholders at the time we announced the Hyperlyser agreement with Medysis last October, the principal reason we came to market was to take advantage of opportunities to expand our products division by the acquisition of new companies and technologies. The agreement with Bioject is further evidence of the success of this strategy and our progress towards becoming a significant player in the medical devices market".

Jim O'Shea, CEO of Bioject Medical Technologies commented:
"Because Bioject is not currently active in the European Insulin market, this agreement is an important step for distributing our products on a more global scale. We are delighted to be able to offer our innovative needle-free injection technology to diabetic patients in Europe through the Medical House"

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For further information
The Medical House plc
Ian Townsend, Chief Executive: 0114 261 9011

Square Mile BSMG
Nick Oborne / Susanne Walker Notes to editors: 020 7601 1000

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

Bioject was founded in 1985 to develop needle-free injection systems to improve the comfort and safety of routine injections. Since then, Bioject has developed a broad technology platform for delivering many different types of medications and vaccines to the subcutaneous and intramuscular depths. The company is currently developing systems for intradermal injections.

The Medical House plc
The Medical House ("TMH"), which floated on AIM in the summer of 2000, specialises in the design, manufacture and distribution of medical products and devices. Its operations include: Eurocut, a company specialising in the design, development and manufacture of instruments and cutting tools for use in orthopaedic surgery; Creative Medical Design, a leading designer of medical devices and manufacturer of prototypes; and an information services division providing business-to-business, medical and health content.

In October 2000 Medisys PLC granted TMH the worldwide rights to a method of detecting helicobacter pylori, the bacteria which causes stomach ulcers and other gastric complaints. The Hyperlyser, which detects the bacteria by measuring levels of ammonia in patients’ breath, is currently undergoing pre-clinical trials and is expected to move to full clinical trials in the third quarter of 2001. At the time of the agreement Medisys acquired a 6% stake in TMH.