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

Grant awarded to support development of needle-free injection devices

The Medical House, the Sheffield based medical devices and equipment company, announces that it has been awarded a grant of £563,863 (the "Grant") from the "Invest for Growth" scheme of investment, administered by Business Link South Yorkshire ("BLSY").

The Grant will assist TMH to fund the further development of its range of needle-free injection devices for the delivery of insulin beyond the mhi-500, to include a new device, designed especially for the paediatric market and another, which will incorporate an insulin cartridge removing the need to load the device with the aid of a vial.

The Grant will be paid to TMH in instalments to 30 September 2004, the expected completion date of the project, and will be subject to two project reviews at key stages of development.

The contract with BLSY is administered on behalf of the Priority 2 Driver Partnership, under the Objective 1 Programme for South Yorkshire. The Objective 1 Programme, funded from several sources including the Secretary of State for Trade and Industry and the European Commission, is designed to support regions such as Sheffield by providing finance to generate economies and create jobs. In 1999, South Yorkshire was one of the regions in the UK to qualify for Objective 1 status from 2000 to 2006.

The Grant follows a share placing by the Company in December 2001 which raised £1.27 million to fund further devices and broadened TMH's shareholder base.

TMH announced in December 2001 that regulatory approval has been awarded for the mhi-500, its first needle-free injection system for diabetics. First deliveries of the product commenced earlier this month.

Ian Townsend, Chief Executive, commented:
"We are delighted with this award. Not only does it support our strong product pipeline of medical devices but it also brings independent recognition of TMH's potential."

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

Weber Shandwick Square Mile 020 7950 2800
Nick Oborne / Susanne Walker

Notes to editors:
The Medical House ("TMH"), quoted on AIM, specialises in the design, manufacture and distribution of medical devices and equipment. 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 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 cause 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. At the time of the agreement Medisys acquired a 6% stake in TMH.

In April 2001, TMH signed an exclusive distribution licence with Bioject Medical Technologies, Inc, the leading US drug delivery company. Under the terms of this agreement, TMH was granted exclusive rights, for an initial five year term, for the distribution of The Vitajet, 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, the mhi-500. The mhi-500 was awarded the CE Mark in December 2001 and deliveries of the device commenced in January 2002.