20 May 2003

Distribution Agreement for new needle-free drug delivery system in Southern Africa

The Medical House PLC (“TMH”), the medical equipment and devices company, announces that it has signed a distribution agreement with Triple M Multi Medical Marketing (Pty) Ltd (“Triple M”) for the distribution of its new needle-free drug delivery system for the delivery of insulin in the Southern African Development Community (“SADEC”).

TMH announced on 8 May 2003 that its new needle-free drug delivery system had been awarded the CE Mark. The agreement with Triple M will become effective following the regulatory process to approve the use of the CE marked device for the delivery of insulin. This process is expected to be completed during the current calendar year.

The agreement will run for an initial period of three years from the effective date on an exclusive basis in SADEC. This territory comprises South Africa, Angola, Namibia, Botswana, Zambia, Swaziland, Zimbabwe, Malawi, Mozambique and Lesotho. Based on indicative quantities, the sales of devices together with escalating sales of the associated consumables could give rise to revenues over the three year period in excess of £700,000.

Triple M is a private company based in South Africa and it is involved in the manufacture and marketing of a range of medical devices. It also has an interest in the manufacture of orthopaedic implants and instruments.

Notes to Editors

The Medical House PLC (“TMH”) is quoted on AIM and 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 for use in orthopaedic surgery; Creative Medical Design, a leading designer of medical devices and manufacturer of prototypes; and Medical House Products which undertakes the development and subsequent sale of medical devices.

Triple-M is a subsidiary of Roth Medical Components group, a manufacturer of medical devices established in 1992. Roth Medical Components exports its range of equipment to over 40 countries. In 2002, it achieved the distinction of winning South Africa’s Technology Top 100 (TT 100) award, a prestigious achievement for small-medium size enterprises covering all industry sectors.

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CONTACTS:

Ian Townsend (Chief Executive Medical House PLC) 0114 261 9011
John Bick (Holborn) 020 7929 5599