Distribution Agreement for mhi-500 needle-free insulin delivery system
in Poland

The Medical House PLC (“TMH”), (AIM:MLH) the orthopaedic devices and drug delivery company, announces that it has signed a distribution agreement with Styl Pol for the distribution of its mhi-500 needle-free insulin delivery system in Poland.

The mhi-500 is a re-usable spring powered needle-free system for insulin delivery. The mhi-500 was launched in January 2002 and is available on the NHS Drug Tariff.

The agreement will run on an exclusive basis in Poland for an initial period of three years. Based on indicative quantities, the sale of devices, together with escalating sales of the associated consumables, could generate revenues over the three-year period in excess of £340,000.

Styl Pol, a private company based in Warsaw, is an established medical product distributor which has been importing medical goods for blood pressure monitoring and orthopaedics to Poland from Austria, Belgium, USA, Ireland and UK since 1991.

The World Health Organisation (W.H.O.) estimates that in 2000 there were some 1.1 million people with diabetes in Poland.

Ian Townsend, Chief Executive, The Medical House PLC, said:
"I am delighted with the latest distribution agreement. It demonstrates the increasing global acceptance of needle-free technology as an extremely effective delivery method for insulin-based pharmaceuticals. It further proves that our needle-free systems are providing a safe and preferable alternative for the growing world diabetic population."

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Note: Medical House currently has distribution agreements in place 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 and Poland.

Notes to Editors – Market Background

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