For Immediate Release 22 September 2004

The Medical House PLC

$7.5 million development supply and licence agreement with global pharmaceutical company

The Medical House PLC (“TMH”), (AIM:MLH) the orthopaedic devices and drug delivery company, announces that it has signed a term sheet with a currently undisclosed global pharmaceutical company, to develop a new device delivery system on an exclusive basis for use with a currently undisclosed drug.

The minimum value of the agreement is expected to be $7.5 million over 5 years.

The Term Sheet provides that TMH would receive approximately $750,000 in development costs for the new delivery system.

In addition the Term Sheet also provides that TMH will be free to licence the new delivery system to other companies for additional indications, subject to certain rights of first refusal.

Ian Townsend, Chief Executive, The Medical House PLC, said:
"I am extremely delighted with this collaboration, it is a fantastic endorsement of our technology to develop new delivery systems for a global pharmaceutical company. I look forward to this producing a substantial income stream for TMH over the coming years and the platform technology being developed is expected to have applications for a whole range of new and existing drugs. It is also pleasing that this comes at a time when our orthopaedic division is trading at record levels with a £5m order book."

- Ends -

The Medical House will report its Preliminary Results to 30 June 2004 tomorrow, Thursday, 23 September 2004. A lunch briefing for analysts will be held at Buchanan Communciations, 107 Cheapside, London EC2V 6DN at 12.30 for 12.45.

For further information

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

Buchanan Communications
Tim Anderson/Lisa Baderoon/Rebecca Skye Dietrich 0207 7466 5000

Notes to Editors:

About Medical House - Market Background
TMH has progressively been developing needle free devices which are already successfully used in the market. TMH initially licensed (the mhi-500) from Bioject. However, TMH's own proprietary next generation device, the SQ-pen, which is the latest spring powered re-useable system, has much greater potential in drug delivery worldwide and also in deals for other biopharmaceutical therapies, such as the one already signed with BioPartners for use with human growth hormone. TMH also has several global distribution agreements in place for the mhi-500.

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 NHS 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.

Medical House currently has distribution agreements already in place for its needle free injection systems for insulin use covering: Australia; the Southern Africa Development Communities (including South Africa, Angola, Namibia, Botswana, Zambia, Swaziland, Zimbabwe, Malawi, Mozambique and Lesotho); Israel; the Benelux countries (Belgium, Holland and Luxembourg), Turkey; Canada; Egypt, New Zealand, China, Poland, Pakistan and Morocco.