For Immediate Release 26 March 2003

The Medical House

Distribution Agreement

The Medical House PLC (“TMH”), the medical equipment and devices company, announces that it has signed a distribution agreement with Thomas and Thomas Medical Marketing Limited of Israel for the distribution of its mhi-500 needle free injection system in Israel.

The mhi-500 device is used for the needle free delivery of insulin to people with diabetes.

TMH announced in November 2002 that it had received approval from the PPA (Prescription Pricing Authority) for the admission of the mhi-500 device to the UK Drug Tariff, to be effective from 1 January 2003. This has enabled the device and the related consumables to be prescribed on a free of charge basis to the more than 500,000 people with diabetes in the UK who inject insulin daily. This makes TMH`s device the first needle free injection system for liquid pharmaceuticals to be available on the Drug Tariff.

The agreement with Thomas and Thomas in Israel will run for an initial period of 3.5 years on an exclusive basis. The company anticipates revenues over the period of the agreement of some £300,000.

Negotiations are ongoing with potential distributors in other countries.

Ian Townsend, Chief Executive commented: “We are delighted to have concluded this agreement and look forward to a successful development of the Israeli market.”

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