For Immediate Release 07 June 2005

The Medical House PLC

Initial deal for AutoSafety Injector (ASI)

The Medical House PLC (“TMH”), (AIM:MLH) the drug delivery and orthopaedic devices company, is pleased to announce that it has signed a binding term sheet agreement with a UK-based subsidiary of a major global healthcare products group. For reasons of commercial and market confidentiality, TMH is not yet in a position to disclose the identity of the pharmaceutical company.

The agreement relates to TMH's disposable AutoSafety Injector (ASI) to be used to deliver a currently undisclosed drug. TMH's revenues are anticipated to be in the region of £3 million over an initial five-year period. Discussions are now ongoing between the parties to negotiate the definitive terms of a development, licence and supply agreement. It is anticipated that the collaboration could be extended in future to other drug products in the pharmaceutical company’s portfolio.

In addition to its needle-free jet injectors, ASI is TMH’s recently developed needle-based disposable autoinjector system. ASI allows injections to be undertaken by patients themselves or by other non-clinicians such as family members, friends and colleagues. The ASI incorporates drugs in standard pre-filled syringes and is suitable for injection of a wide range of pharmaceuticals to treat a variety of medical conditions. It ensures comfortable, consistent injection outcomes, whilst also overcoming patients’ aversion to injecting with needles and eliminating risks of needlestick injuries and disease transmission associated with used needles.

It is estimated that more than 1 billion prefilled syringes are currently used worldwide. The market for prefilled syringes is believed to be growing at an annual rate of more than 5%. Drugs supplied in prefilled syringes are primarily injected for conditions such as rheumatoid arthritis, multiple sclerosis and for vaccination.

TMH will update the market in due course on details of the final collaboration.

Ian Townsend, Chairman, The Medical House, said:
"We are very pleased to have signed this term sheet agreement with this pharmaceutical company, as it provides further validation of The Medical House's ability to deal in the global healthcare arena.

This is a particularly exciting development as it represents the first deal to bring our disposable autoinjector technology, the ASI, to market for self-injection. We are presently in discussions with a number of other potential partners for the ASI who indicate that the simplicity of its design offers many advantages, such as ease of operation, cost effectiveness and rapid commercialisation for pharmaceutical company partners. We look forward to updating the market on details of this collaboration in due course.”

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For further information
The Medical House PLC
Ian Townsend, Chairman 0114 261 9011
www.themedicalhouse.com
Buchanan Communications
Tim Anderson/Lisa Baderoon/Rebecca Skye Dietrich 020 7466 5000

Notes to Editors:

About The Medical House – Market Background

TMH has progressively been developing a range of needle-free devices which are already successfully used in the market. TMH's SQ-PEN needle-free device has great potential in drug delivery worldwide. TMH also has several distribution agreements in place for the insulin market for its range of reusable needle-free injectors.

In February 2004, TMH announced a license and supply agreement with Dechra Plc for needle-free injection system for use with pet animals.

In January 2005 TMH announced an agreement which it has signed with Serono, to develop and license a new needle-free delivery system for the delivery of Serono's Human Growth Hormone products.

In February 2005 TMH announced a 10-year agreement which it has signed with BioPartners GmbH, to supply its GH1 needle-free system for the delivery of BioPartners’ Human Growth Hormone products.

The market for Human Growth Hormone drugs is expected to reach $2.2 billion by 2006 according to AS Insights.