6 June 2003

Proposed Placing of New Ordinary Shares

The Medical House PLC (“the Company”), the medical equipment and devices company, announces that it is proposing to raise approximately £503,000 (net of expenses) through a placing of 1,195,555 new ordinary shares of 1p each in the Company (“New Ordinary Shares”) at a price of 45p per share (“the Placing”). The net proceeds of the Placing will provide additional working capital for the Company and will increase the free float in the Company`s issued shares.

The Placing is conditional, inter alia, on shareholders approving resolutions authorising the Company to allot equity securities for cash on a non pre-emptive basis at an extraordinary general meeting being convened for 30 June 2003 (“EGM”). The Company will be sending shareholders a circular later today convening the EGM and setting out the details of the Placing and the resolutions.

The Placing is being undertaken by Canaccord Capital (Europe) Limited as agent for the Company pursuant to a Placing Agreement dated 6 June 2003 between (1) Canaccord Capital (Europe) Limited and (2) the Company which is conditional, inter alia, on the passing of the resolutions at the EGM and admission of the New Ordinary Shares to trading on AIM. The Placing is not underwritten.

Two Directors of the Company, Ian Townsend (Chief Executive) and Gerry Kemp (Operations Director) have each agreed to subscribe for 111,111 New Ordinary Shares pursuant to the Placing. In addition, Ian Townsend and Gerry Kemp have confirmed that they will vote in favour of the resolutions being proposed at the EGM in respect of their aggregate beneficial holdings of 40,403,693 ordinary shares of 1p each, representing 75.9 per cent. of the Company’s existing issued ordinary share capital.

Application will be made for the New Ordinary Shares to be admitted to trading on AIM. It is expected that such admission will become effective on or before 4 July 2003. The New Ordinary Shares will, when issued, rank pari passu in all respects with the existing ordinary shares of 1p each in the Company.

Commenting, Ian Townsend, Chief Executive of The Medical House PLC, said:

“I look forward to welcoming our new institutional and private shareholders in the Company. Good progress is being made with the commercialisation strategy for our needle-free drug delivery systems having announced three product distribution agreements so far this year. Our orthopaedics business continues to perform in line with our expectations ahead of the new manufacturing capacity which is due to come on line later this year.”

Copies of the circular sent to shareholders today are available from the offices of the Company, 201 Newhall Road, Attercliffe, Sheffield, South Yorkshire, S9 2QJ.

Notes to Editors

The Medical House PLC 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 needle-free drug delivery devices.

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CONTACTS:

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