The Product Division is focused upon the manufacture of orthopaedic instruments using in-house computer aided design.

The Information Division licenses medical reference material, health information and computer aided learning packages in digital format to other businesses and websites. In addition the Information Division provides medical professionals, students and other users with free access to its libraries of medical information and daily updated medical news through its own websites - www.healthworks.co.uk. and www.derweb.co.uk.

KEY STRENGTHS

Eurocut has had a nine year unbroken history of profitable trading.

The Group has a strong management team with experience of the medical sector and the latest technologies associated with operating in today's marketplace.

The Directors have created a group of companies operating in the medical sector which can benefit from the advantages of shared marketing resources together with design and manufacturing expertise.

TMH is building upon the core of traditional business skills which exist within Eurocut and Creative Medical Design by adopting the latest technologies made available through the medical information companies, Healthworks and DERWeb, acquired in the first half of this year.

OPPORTUNITIES

Content provider
The Information Division has already accumulated a considerable volume of content. The Directors believe that the distribution of medical content via the internet has significant advantages over traditional distribution methods. The key advantage to TMH is one of cost: once the costs of acquiring the proprietary content, licence or royalties have been met the costs of storing and distributing content are relatively low. The advantages to the user include more timely publication than can be achieved through distribution of paper books and journals, and the ability to perform database searches of the available content and remote access to a large volume of information.

Technological advances
The Directors expect that the introduction of ADSL and other higher bandwidth technologies will enable content to be accessed and downloaded much faster than is currently possible and that this advance will provide an opportunity to both TMH and to its customers.

Digital Secure Patient Records
Under The Johnson Agreement, Medical House Publishing will work with The Johnson Agency in developing a European market for internet communications amongst all current paper patient record keepers such as hospitals, pharmacies, general practitioners and government agencies, through the use of the product HealthCompass created by HealthMagic, Inc.

Website development and hosting
Under the Johnson Agreement, Medical House Publishing will work with The Johnson Agency, to develop a market for website development services for hospitals and other medical clinics on an exclusive basis in the EU, using the Sitemaker product created by the MedSeek Corporation.

OFFER FOR SUBSCRIPTION

The Company is seeking to raise up to £2.15 million (net of expenses) in an Offer for Subscription to provide further working capital for the development of its recent acquisitions and to pursue further acquisitions of complementary businesses in the medical sector.

BUSINESS - PRODUCT DIVISION

Eurocut manufactures a range of high quality orthopaedic surgical instruments for an international blue-chip customer base. The majority of these instruments are employed in hip and knee replacement surgery. Eurocut also manufactures instruments for use in shoulder, spinal and trauma surgery.

Eurocut and Creative Medical Design work closely with customers in the development of orthopaedic instruments and significant investment has been made in the design services of Creative Medical Design. The highly developed skills of Creative Medical Design's experienced operators and its integrated Unigraphics CAD-CAM system provide the capability to cope with the complexity and sophistication of Eurocut's products and to add value to Eurocut's customers' designs. The intellectual property rights remain with customers, which are some of the world's leading medical supply companies.

Creative Medical Design was incorporated in January 2000 to take on the role of Eurocut's design department and to allow it some autonomy to offer a design service, not just to the orthopaedic sector but to the wider medical industry. However, its principal purpose will continue to be to provide a design service to Eurocut.

The quality of its products is fundamental to Eurocut's success owing to the demanding nature of the surgical procedures in which the instruments are employed. Quality is measured in terms of design, materials, accuracy of machining and finish; to achieve this Eurocut has invested substantially in computer controlled integrated design and machining technology.

The Directors consider that Eurocut is the only supplier of its type and quality in Europe, and are aware of only one comparable competitor, in the USA, which is able to supply the quality and volumes demanded by the global marketplace for orthopaedic instruments.

Eurocut operates from premises in Sheffield and is currently in the process of applying for planning permission for an extension on the same site, which would provide space to increase substantially production capacity. Eurocut employs approximately 75 staff and has developed its own training scheme to ensure that, as far as possible, the right skills are available to the business.

The market is well established and demand for orthopaedic devices is forecast to grow as the average age of the population increases. The Directors' strategy for Eurocut is two fold; the Directors intend to continue to seek improvements in production techniques and efficiency and to take advantage of and increase market share.

BUSINESS - INFORMATION DIVISION

The Information Division aims to become a leading medical information resource for both the medical profession and the wider medical industry. TMH formed the Information Division to take advantage of opportunities identified by the Directors to provide a wide variety of medical information in digital format, principally to website operators and training organisations under licence arrangements, and directly to medical professionals through its own websites. To date, the Information Division has made two acquisitions and has obtained rights to publish a wide range of medical content in a digital format. In addition, these acquisitions have added vital skills in internet operation and design, provided established databases of regular site users and, through the staff acquired, have added considerable depth of experience.

The main focus of this division is to continue to develop its B2B services; however, the division is committed to continue to increase the content available directly to medical professionals via the websites as this provides invaluable profile for the Group in the medical industry and a database of users.

The Information Division currently comprises three companies: Medecal, trading as Healthworks, DERWeb and Medical House Publishing.

Healthworks, which operates the website www.healthworks.co.uk, was established in 1994. The website is a significant source of medical reference material for a world-wide audience of medical professionals. The company has a database of registered medical professional users of some 37,000, including a considerable number of UK general practitioners and most of the UK medical schools and universities. Over 40,000 visitors are attracted to the website every month spending an average of 16 minutes per user session. Healthworks generates sales from its collection of around 1,000 CD-ROM titles covering a wide variety of medical reference material from publishers around the world. Steps are being taken towards distributing this content via online download. This collection of medical information is now attracting substantial interest from other medical and health internet website operators, who are keen to include such information on their own sites in order to attract visitors.

DERWeb was started in 1994 by a leading academic at the School of Clinical Dentistry in Sheffield, and has developed from a research project into a significant dental resource visited by dental professionals from more than 90 countries around the world. It has direct links with, and is used by, 18 professional dental societies. DERWeb is at present less developed commercially than Healthworks, but it is intended that it will be developed to deliver a comparable service to the dental community. The Directors believe that the key strengths of DERWeb are its library of over 2,000 digitally stored dental images and its profile in the dental community. The site had approximately 25,000 visits in April 2000.

Medical House Publishing was formed in June 2000 to market and distribute medical content, software and other services under the two exclusive agreements which have been signed to date:

Medical House Publishing signed a five year agreement on 1 June 2000 with The Johnson Agency, USA (the "Johnson Agreement") for medical content and internet based services, under which it will market and distribute on an exclusive basis, in the EU, certain content from adam.com, Inc, a leading USA based content provider of medical and health information products. In addition the Johnson Agreement gives the right to market and distribute certain services of HealthMagic, Inc and the MedSeek Corporation which include:
&Mac183; HealthCompass, an internet based personal health management system that allows consumers to establish a lifelong health record for themselves and their family members, and provides access to a variety of interactive applications to help users identify and manage personal health issues; and
&Mac183; SiteMaker, a website design and hosting technology designed specifically to meet the needs of hospitals and the wider medical community.

Medical House Publishing will market computer aided learning (CAL) products under an exclusive five year licence from The University of Aberdeen's Medical Faculty CAL Department. Historically, The University of Aberdeen has developed content in-house and has produced CAL packages for its students. The medical course material packages have been redesigned to make them commercially attractive. The University will continue to retain editorial control over the content to ensure ongoing integrity of all the course material. In addition, the Directors are currently in discussion with The Johnson Agency, USA with a view to selling these CAL packages in the USA. There are 12 packages currently, including "Child Development: The First Year", "The Model Patient" and "Cardiopulmonary Resuscitation (CPR)".

OPPORTUNITIES FOR THE INFORMATION DIVISION

The strategy of the Information Division is to provide a source of website development services and database driven content to other websites, and to provide a `one stop shop' for the medical profession, hospitals, professional societies and medical product and service providers catering for their reference, information, study and other requirements:

Content provider
The Information Division has already accumulated a considerable volume of content:
&Mac183; it has around 1,000 CD-ROM titles available on Healthworks;
&Mac183; an exclusive agreement with The Johnson Agency to distribute content in the EU from adam.com, most notably adam.com's Illustrated Health Encyclopaedia, which is regarded in the USA as a leading internet health reference text;
&Mac183; DERWeb has over 2,000 digitally stored dental images; and
&Mac183; an exclusive licence with the medical faculty of The University of Aberdeen for computer aided learning packages.

The Directors believe that the distribution of medical content via the internet has significant advantages over traditional methods. The key advantage to The Medical House is one of cost: once the costs of acquiring the proprietary content, licences or royalties have been met the costs of storing and distributing content are relatively low, which requires storage premises and physical delivery. The advantages to the user include more timely publication than can be achieved through distribution of paper books and journals, and the ability to perform database searches of the available content and remote access to a large volume of information. Discussions are taking place with a number of blue chip companies and a government organisation to licence the supply of website content.

Technological advances
Large volumes of data and in particular images can be down loaded on currently available technology. However, the Directors expect that the introduction of ADSL and other higher bandwidth technologies will enable content to be accessed and downloaded much faster than is currently possible and that this advance will provide an opportunity to both TMH and its customers.

Higher bandwidth technology is of particular relevance to the distribution of still images and video images. There is an established commercial demand for medical images from academics and other publishers who wish to include such images in their publications. The Directors anticipate that the introduction of ADSL will enable video images to be viewed on the internet and this service will be added to the Healthworks range of products once the technology is available.

Virtual Medical Communities
A contract has been signed with British Telecommunications PLC to co-ordinate approximately 1,000 investigators involved in clinical trials. Healthworks is providing a news service, Medline, its own `Health on the Internet' database and, importantly, a discussion group area for interaction and feedback between the participating pharmaceutical companies and the investigators. The Directors believe that Healthworks was chosen by British Telecommunications PLC because of its specialist knowledge and experience.

Digital Secure Patient Records
Under the Johnson Agreement, Medical House Publishing will work with The Johnson Agency to develop a European market for HealthCompass, a personal health management tool. The HealthCompass service provides consumers with online access to their health information from anywhere in the world and at any time of day. The Directors believe that there are significant opportunities for these products.

Universities
Discussions are taking place with a number of universities to place training and course information on the internet and to make it accessible to students and trainees. Healthworks intends to create a valuable internet database for medical students. The Directors view these relations as having a high importance to the Information Division as universities provide a concentration of published research and archive material.

Website development and hosting
Under the Johnson Agreement, Medical House Publishing will work with The Johnson Agency to launch hospital and other medical clinic website development services in the EU using certain services of the MedSeek Corporation exclusively licensed to The Johnson Agency and Medical House Publishing in the EU.

THE OFFER FOR SUBSCRIPTION

Brewin Dolphin is conditionally offering for subscription with new investors 5,000,000 Offer Shares, as agent for the Company at 50p per share. The Offer is conditional, inter alia, upon valid applications having been received for not less than 1,500,000 Offer Shares by 10am on 31 July 2000 or such later date as Brewin Dolphin and the Directors may agree but in any event not later than 6 August 2000, and on the Admission of the Ordinary Shares to trading on AIM by 11 August 2000.

All the Offer Shares will be in registered form and no temporary documents of title will be issued. The Company will apply for the Ordinary Shares (both issued and to be issued) to be admitted to CREST and it is expected that the Ordinary Shares will be so admitted and accordingly enabled for settlement in CREST on the date of Admission. It is expected that Admission will become effective and dealings in the Ordinary Shares will commence on 11 August 2000.

The Offer of 5,000,000 new Ordinary Shares on behalf of the Company is intended to raise £2,500,000, before expenses. After the expenses of the Offer and Admission payable by the Company, estimated in total at £350,000, excluding VAT, the Offer is expected to raise for the Company approximately £2,150,000 net. The founders of the Company will not be selling shares in this offer.

TMH intends to use the funds to provide further working capital for the development of its recent acquisitions and to pursue further acquisitions of complementary businesses in the medical sector.

Information regarding the offer and the subscription application procedure is available on two websites, www.themedicalhouse.com, www.brewindolphin.co.uk and www.issuesdirect.com.

DIRECTORS

Bryan Bodek LLB (aged 47 years) - Non-executive Chairman
Bryan Bodek became chairman of TMH in June 2000. He is also the managing director of Airline Services Limited, a supplier of aircraft presentational services to airlines in this country and overseas. Prior to his joining Airline Services Limited in January 2000 he was the managing partner and head of corporate finance at Kuit Steinart Levy solicitors, in Manchester, where he has had 20 years experience advising in corporate transactions. In February 2000 he was appointed a director of Manchester City PLC.

Ian Townsend FCA (aged 45 years) - Chief Executive
Ian Townsend qualified as a Chartered Accountant in 1976 and worked for KPMG until 1979, when he set up his own practice in Harrogate and York. In 1986 he formed Townsend Management Consultants Ltd, specialising in corporate recovery. He became finance director of Conrad PLC in 1993, and was instrumental in managing the turnaround of Conrad. He later played a key role in the reversal of Sheffield United PLC into Conrad, and stayed on the board of Sheffield United PLC, latterly as chief executive, until November 1998. Ian formed Eurocut along with Gerry Kemp in 1988 and, until the formation of TMH, he served as chairman. He became chief executive of TMH in January 2000.

Gerry Kemp (aged 56 years) - Operations Director
Gerry Kemp trained as a metallurgist at West Yorkshire Foundries in Leeds. He moved on to Ennore Foundries, Madras, India, where he commissioned plant and equipment to produce cast iron cylinder heads. In 1969 he became a sales engineer for Abrafract Ltd, Sheffield, and in 1980 formed Kemmer Engineering which took over the Abrafract agency in Yorkshire and the North East. The agency was held until 1997, when Abrafract was taken over. He formed Eurocut in 1988 with Ian Townsend and has been managing director since 1990. He will continue in this role, bringing his considerable manufacturing expertise to the Board.

Dr Philip Drury (aged 50 years) - Non-executive Director
Philip Drury studied at the University of Birmingham before moving in 1972 to the department of Technical Surgery at the University of Nottingham, where his main work was gastro-intestinal motility. Following two years in the Departments of Surgery and Physiology and Pharmacology, Nottingham, in 1975 he moved to the Department of Medical Physics and Clinical Engineering at the Royal Hallamshire Hospital in Sheffield. Between 1975 and 1988 he prepared over 90 reports for the DHSS and the Medical Devices Directorate on equipment evaluation and defect investigations. In 1988 he became Chief Executive of Biomedical Equipment Evaluation and Services. In January 1995 he formed his own consultancy business - Philip Drury Medical Technologies - specialising in medical device technology. He is also a consultant with Medilink and PA Consulting Group. He is regularly consulted by European Competent Authorities, including the UK's own Medical Devices Agency, and brings considerable experience and expertise to the Board.

OFFER STATISTICS

Offer Price 50p
Number of Offer Shares being offered for subscription 5,000,000
Ordinary Shares in issue immediately following the Offer 50,140,000
Percentage of enlarged issued Ordinary Share capital being offered for subscription 10 per cent.
Amount, after expenses, being raised for the Company £2.15 million
Market capitalisation at the Offer Price £25 million

Assuming that the Offer will be fully subscribed for the purpose of the figures quoted in relation to the share capital of the Company.

EXPECTED TIMETABLE OF PRINCIPAL EVENTS

2000
Latest time and date for receipt of completed Priority Application Forms 3.00pm on 24July
Latest time and date for receipt of completed Application Forms 3.00pm on 31July
Admission effective and dealings in Ordinary Shares expected to commence 7 August
CREST accounts credited by 7 August
Definitive share certificates despatched by 11 August

If the Offer is fully subscribed before 31 July 2000 or the Offer is extended, some of these dates may change.

Copies of the Prospectus, which also constitutes an AIM admission document will be available free of charge to the public during normal business hours on any weekday except Saturdays and public holidays from the registered office of the Company and from the offices of Brewin Dolphin Securities Ltd, 5 Giltspur Street, London EC1A 9BD from today until the date of Admission. Copies of this document can be viewed and printed at www.themedicalhouse.co.uk and www.brewindolphin.co.uk.

- Ends -

For further information, please contact:

The Medical House PLC 0114 261 9011
Ian Townsend, Chief Executive www.themedicalhouse.com

Brewin Dolphin Securities Ltd 0113 241 0130
Mark Brady/Andrew Emmott www.brewindolphin.co.uk

Square Mile Communications 020 7601 1000
Mike Wort/Georgina Briscoe info@sq-mile.com