The Medical House PLC

Sales Growth continues

The Medical House PLC (“TMH”), (AIM:MLH) the orthopaedic devices and drug delivery company held its Annual General Meeting (“AGM”) today. Chairman Bryan Bodek, made the following statement at the meeting:

“I am pleased to say that trading in the first quarter of the current year has more than met our expectations. Orthopaedic sales momentum, driven by the increased production capacity introduced in January 2004, continues to gain pace.

“The prospects for our Drug Delivery Systems business are just as exciting. The full impact of the $7.5m agreement announced in September will become apparent in due course when the strength of our partner and the existing sales level of the drug involved are announced. This single deal transforms our Drug Delivery Systems business.

“It should not be surprising that the Board of The Medical House looks forward to reporting on further Company progress during 2004 and 2005. We have never been in better shape with better prospects.”

All resolutions at the AGM were approved.

- Ends -

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: 0207 7466 5000

Notes to Editors:

About Medical House - Market Background
TMH has progressively been developing needle free devices which are already successfully used in the market. TMH initially licensed (the mhi-500) from Bioject. However, TMH's own proprietary next generation device, the SQ-pen, which is the latest spring powered re-useable system, has much greater potential in drug delivery worldwide and also in deals for other biopharmaceutical therapies, such as the one already signed with BioPartners for use with human growth hormone. TMH also has several distribution agreements in place for the mhi-500.

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.

Medical House currently has distribution agreements already in place for its needle free injection systems for insulin use 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, Poland, Pakistan and Morocco.