16 February 2004

The Medical House PLC

Needle-free Injections for Pet Animal Market

Collaboration Agreement with Arnolds Veterinary Products, a trading division of Dechra Pharmaceuticals PLC

The Medical House PLC (“TMH”), (AIM:MLH) the drug delivery and orthopaedic devices company, today announces that it has signed a collaboration agreement with Arnolds Veterinary Products (“AVP”), a division of Dechra Pharmaceuticals PLC (“Dechra”).

Needle-free drug delivery will enable pet owners and vets to routinely administer drugs without the problems that needle injections entail. TMH's new technological advances also provide a means of addressing the pain associated with needle-based injections.

The companies will initially undertake clinical evaluation of needle-free devices for injecting drugs into pet animals. Under the terms of the collaboration, the companies will work together to develop and tailor needle-free drug delivery systems, suitable for administration of AVP’s veterinary pharmaceutical products, as well as license and supply of TMH’s needle-free injection systems to AVP.

Dechra is the only fully listed pharmaceutical company that derives a substantial part of its income from the UK and international veterinary and animal healthcare markets. Dechra will retain all intellectual property rights to their pharmaceutical products, whilst TMH will retain all intellectual property rights to their drug delivery systems.

Ian Page, Chief Executive, Dechra said:
“The collaboration with TMH and their advanced technology will allow us the opportunity to provide an innovative delivery system for animal pharmaceuticals. This, we believe, can open up new and significant markets to Dechra.”

Ian Townsend, Chief Executive, The Medical House PLC, said:
“This is a strategically significant collaboration for The Medical House. We are delighted to be working with a leading company with a proven track record in the international veterinary pharmaceuticals and devices markets. With our state of the art systems, this agreement opens exciting new opportunities for The Medical House and builds upon our earlier successes in realising the potential of needle-free technology.”

- Ends -

For further information

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

Dechra Pharmaceuticals PLC
Ian Page, Chief Executive
Tel: 01782 771100
www.dechra.com

Buchanan Communications
Tim Anderson/Lisa Baderoon/Rebecca Skye Dietrich Tel: 020 7466 5000

Notes to Editors:

About The Medical House
The Medical House PLC is quoted on AIM, specialising in the design, manufacture and distribution of drug delivery systems and orthopaedic medical devices. 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. The group’s mhi-500 needle-free insulin delivery system was the first such device to be listed on the NHS Drug Tariff, enabling it to be prescribed free-of-charge to people with diabetes. In the past year, Medical House Products have appointed 10 international distributors for sales of its needle-free drug delivery systems. It has also licensed its new GH1 needle-free system to a pharmaceutical company, BioPartners, for delivery of human growth hormone.

About Dechra Pharmaceuticals PLC
www.Dechra.com
Dechra Pharmaceuticals are specialists in the UK and international veterinary and animal healthcare markets. Key to the Group’s strategy is the worldwide development of its veterinary pharmaceuticals portfolio.

Quoted on the London Stock Exchange (under pharmaceuticals and biotech: Reuters: DPH.L), the business has four businesses: National Veterinary Services (“NVS”), Arnolds Veterinary Products (“AVP”), Dales Pharmaceuticals (“Dales”), NationWide Laboratories/Cambridge Specialist Laboratory Services.

Arnolds Veterinary Products
www.arnolds.co.uk
Arnolds is one of the most well respected and recognised brand names in the UK veterinary market, and holds leading positions in several specialist therapy areas including endocrinology, local anaesthesia and equine anti-inflammatory treatments. Its companion animal product development pipeline is focussed on areas in cardiology, endocrinology, oncology and respiratory diseases.