For Immediate Release 14 July 2004

Medical House Plc

Trading Update Following Year End

The Medical House PLC ("TMH"), (AIM:MLH) the orthopaedic devices and drug delivery company, issues the following update on its performance for the year ended 30 June 2004.

The board expects to announce encouraging results for the period that are a little ahead of market expectations, primarily due to:

• Orthopaedic instrument sales in the second half of the financial year were 50% up on the first six months. Sales were driven by greater manufacturing capacity and a buoyant market resulting from new surgical techniques which demand innovative instruments using The Medical House’s cutting-edge technology.
  
• Drug Delivery Systems is still a small contributor to overall performance, but higher market awareness has resulted in a similar 50% increase in sales in the second half of the financial year compared to the first six months.

The strong second half performance of both these divisions together with an order book in excess of £4.5m leaves the board confident about the coming year to June 2005. The success of the orthopaedic operation demands continued expansion of capacity.

Technology development from Drug Delivery Systems at The Medical House is gaining worldwide acceptance in the pharmaceutical industry and is leading to an increased level of potential business. The SQ Pen is in the process of being launched through distributors internationally. Needle-free insulin sales in the UK also grew strongly at the end of the year.

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

"I am delighted with the performance of The Medical House. We finished the year very strongly and the Group has never been in better shape."

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