Distribution Agreement for mhi-500 in Turkey

The Medical House PLC (“TMH”), the medical equipment and devices company, announces that it has signed a distribution agreement with Oncu Medical for the distribution of its mhi-500 needle free injection system in Turkey. The mhi-500 device is used for the needle free delivery of insulin to people with diabetes. According to the W.H.O. there were 2.9 million people diagnosed with diabetes in Turkey in the year 2000 making the market over twice the size of the UK.

The agreement with Oncu Medical will run for an initial period of 3 years on an exclusive basis. Oncu anticipates that sales volumes over the period of the agreement could produce sales revenue to TMH in the region of some £500,000.

Oncu Medical is an Ankara-based private company, with representation throughout Turkey established 14 years ago. The company is focused on the distribution of medical, diagnostic and laboratory equipment, including diabetes-related products such as blood glucose monitoring systems.

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 to be first needle free injection system for liquid pharmaceuticals to be available on the Drug Tariff on a free of charge basis to the more than 500,000 people with diabetes in the UK who inject insulin daily.

Ian Townsend, Chief Executive, commented:

“Since Drug Tariff approval for the mhi-500 device was granted, we have agreed four distribution agreements across twelve countries that will generate solid cash flow over the coming years. Negotiations are ongoing with potential distributors in other countries where we have yet to formalise distribution agreements but where the device continues to gain acceptance as a viable alternative to needle injection of insulin on a regular basis.”

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
tel: 0114 261 9011
The Medical House PLC
www.themedicalhouse.com

John Bick, Holborn
tel: 020 7929 5599