THE MEDICAL HOUSE PLC

INSTITUTIONAL PLACING RAISES £1.5 MILLION

The Medical House PLC (the “Company”) (AIM:MLH), the orthopaedic devices and drug delivery company, announces today that 3.7 million new ordinary shares of 1 pence each (the “Shares”) have been conditionally placed to new and existing institutional shareholders by Canaccord Capital (Europe) Limited at a price of 41 pence each (the “Placing”). The Placing, which is conditional on shareholder approval and admission to trading on the Alternative Investment Market of the London Stock Exchange (“AIM”)(“Admission”), will raise approximately £1.5 million for the Company before expenses.

Application will be made for the Shares to be admitted to trading on AIM and dealings are expected to commence on 12 March 2004. When issued, the new shares will rank pari passu in all respects with the Company's existing ordinary shares. The Company will have a total of 59,626,091 ordinary shares in issue following the Placing.

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

"We are very pleased with the placing. The additional funds will be used in the expansion of our drug delivery technology and ever growing orthopaedic business, which is currently enjoying record order levels.

We have separately announced today a collaboration with Dechra Pharmaceuticals Plc, which enables us to utilise our advanced needle-free technology in the growing area of the pet and animal market."

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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
Tel: 020 7466 5000