The Medical House plc
("TMH" or the "Company")

Placing to raise £1.27 million Regulatory approval of mhi-500 needle-free injection system

TMH, the medical devices and equipment company, today announces a placing (the "Placing") of 2,511,536 new ordinary shares of 1p each (the "New Ordinary Shares") at a price of 52 p per share (the "Placing Price") to raise £1.27 million (net).

The proceeds of the Placing will primarily be used to extend TMH's range of needle-free injection devices for the delivery of insulin.

In addition, TMH announces that it has received regulatory approval for the mhi-500, TMH's needle-free injection system for diabetics. The Company has been awarded CE mark approval for the product and deliveries are scheduled for the beginning of next year.

Details of the Placing

Pursuant to an agreement dated 13 December 2001, between, inter alia, Granville Baird Limited ("Granville Baird") and the Company, Granville Baird, as agent for the Company, has conditionally agreed to use its reasonable endeavours to procure institutional and other investors to subscribe the New Ordinary Shares at the Placing Price.

Application has been made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on its Alternative Investment Market ("Admission"). It is expected that Admission will become effective and dealings in the New Ordinary Shares will commence on 18 December 2001.

The New Ordinary Shares will, when issued, rank pari passu in all respects with the existing ordinary shares of 1p each in the Company ("Existing Ordinary Shares").

TMH also announces that Granville Baird has, as agent for Ian Townsend, a director of the Company, and the trustees of the Gerard Kemp, Interest in Possession Settlement (the sole beneficiary of which is Gerard Kemp, also a director of the Company), arranged purchasers for 1,346,153 and 1,346,154 Existing Ordinary Shares respectively with institutional and other investors at the Placing Price. Following these disposals and the Placing, Mr Townsend and Mr Kemp are interested in 20,899,847 and 19,503,846 Existing Ordinary Shares respectively representing 39.3 per cent and 36.6 per cent respectively of the enlarged issued ordinary share capital of the Company. Both Mr Townsend and Mr Kemp have undertaken not to dispose of further Existing Ordinary Shares prior to the second anniversary of Admission without the written consent of Granville Baird.

Commenting on the Placing and trading, Ian Townsend, Chief Executive, said:

"Development of the mhi-500 is now complete with initial sales expected in the New Year. The Placing will enable us to finance the design and development of the next generation of needle-free injection devices for the diabetic market to ensure that our strong product pipeline continues.

"We also welcome new institutional investors who will broaden the Company's shareholder base and improve the liquidity and marketability of its shares.

"Regulatory approval for the mhi-500 has now been awarded and deliveries remain scheduled for the beginning of next year. Interest in the product has been extremely encouraging, particularly amongst the UK's 350 diabetic clinics. TMH has also been invited to visit over 350 medical practitioners specialising in diabetes care.

"The Hyperlyser, which detects ammonia known to be released by helicobacter pylori, the bacteria responsible for certain gastric complaints including ulcers, continues trials in conjunction with the University of West of England. As previously stated, the Hyperlyser is expected to generate income in the year ending 30 June 2003.

"Eurocut, the Group's manufacturer of orthopaedic surgical equipment entered the current year with a record order book and a more favourable work mix.

"TMH is on target to meet expectations for the full year."

- Ends -

For further information, please contact:

The Medical House plc 0114 261 9011
Ian Townsend, Chief Executive

Granville Baird 020 7488 1212
Shaun Dobson

Weber Shandwick Square Mile 020 7601 1000
Nick Oborne / Susanne Walker