Medical House Plc

Ref: MH002

Date: 8 May 2000

Sheffield’s The Medical House Builds with Acquisition of Internet Dental Service

Ian Townsend Another major acquisition by Sheffield-based medical services group The Medical House has signalled the company’s intent to continue expansion in the run up to its planned floatation.

The group, headed-up by Ian Townsend, has acquired the UK’s premier dental information services company DERWeb* for an undisclosed sum. The agreement provides the group with a customer base of over 70,000 dentists around the world and complements previous acquisition, Healthworks (bought in Dec ’99), a similar web-based operation for doctors.

DERWeb, started in 1994 by leading academics at the School of Clinical Dentistry in Sheffield, has developed from a research project into one of the most respected dental resources in the world. With over 517,000 web hits in March 2000, the site is visited by dental professionals from more than 90 countries around the world. DERWeb has some prestigious dental associations as customers as well as leading dental manufacturers such as Schottlander. Investment has topped £600,000 in the last 6 years.

Commenting on the new strategic partnership, Ray Winstanley, joint head of DERWeb since its inception said, "The acquisition is excellent news for DERWeb, we needed a bigger technical base with which to capitalise on the opportunities. In The Medical House we now have a partner with in-house web expertise, buying power, technical support and complementary marketing channels."

The DERWeb acquisition firmly places The Medical House at the forefront of medical information services. The group includes two web-based information resources (DERWeb and Healthworks), the successful and long-established medical equipment company Eurocut as well as a world-leading medical design consultancy.

Ian Townsend (Chief Executive of The Medical House) commented, "This addition to an already strong team of companies really gives us a boost within our market. DERWeb is another brick in the foundations of The Medical House, a group of businesses with synergy and a perfect balance between medical web, manufacturing, publishing and design businesses."

The news brings added interest in the privately owned group in advance of the planned floatation later this year.

*DERWeb – Dental Education Resource (on the) Web

<ends>

For further information and interviews with key personnel, please contact: Tim Cooper or Paul Snape on 01423 564422 or email on tim@appealpr.co.uk

Editor note

Medical House - The concept

Ian Townsend together with his partner Gerry Kemp, launched a new company called The Medical House and set it on an acquisition trail.

The aim is to develop Medical House into a collection of businesses within the medical world. It will offer the opportunity for the spectacular growth associated with Blue Sky ventures that technology companies can ignite, whilst providing the secure foundations of companies with solid earnings.

What it means

Having reviewed the market, they feel there is an opportunity to fill a gap:

Most companies rely on one product / invention to generate investment return, which whilst it can offer significant return, this can also result in significant losses
Solid companies provide secure earnings, without the opportunity for dramatic returns

The present

The Medical House is currently talking to a number of companies which it feels will provide the correct balance of solid earning and growth potential within the sector. It is continually on the look out for more.

Additional background

Eurocut

The principal subsidiary company under the Medical House banner is Eurocut, Europe’s leading manufacturer of orthopaedic instruments. Established for 11 years, it employs nearly 70 people in Sheffield and has sales in excess of £4m per annum. This year, orders are expected to be reported at record levels.