For Immediate Release 25 January 2005

The Medical House PLC

ORTHOPAEDIC AGREEMENT

The Medical House PLC (“TMH”), (AIM:MLH) the orthopaedic devices and drug delivery company today announces its subsidiary, Eurocut Ltd., has signed an agreement with DePuy International Limited, a subsidiary of Johnson and Johnson, for a minimum period of one year, to manufacture and supply image guided knee systems. The contract is expected to be worth approximately £850,000 in the first 12 months.

Eurocut will carry stocks of the DePuy product in return for its commitment to buy this product range. It is anticipated that this will become a long-term relationship, but the contract can be terminated by either side with three months notice after the initial 12 month period.

Image guided knee systems are one of the latest innovative products developed and sold by DePuy in order to continually improve patient comfort and operation times during knee replacement surgery.

Ian Townsend, Chief Executive, said:
"Having worked with DePuy for over 10 years we are delighted to be entering into this agreement which gives Eurocut increased visibility on its future orders. We hope that this agreement will prove successful for both companies and may ultimately be extended to cover other instrument systems currently manufactured for DePuy."

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For further information

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

Buchanan Communications
Tim Anderson/Lisa Baderoon/Rebecca Skye Dietrich 0207 7466 5000

Notes to Editors:

About The Medical House (TMH)

Historically the majority of the Group’s turnover has come from its orthopaedic company, Eurocut Limited. It designs and manufactures instruments and systems used in orthopaedic procedures for many of the world’s leading orthopaedic companies. Eurocut was established in 1988 and now has a reputation as one of Europe’s leading orthopaedic instrument businesses. In January 2004, the company moved into enlarged premises enabling it to expand sales significantly. This enables Eurocut to take advantage of a growing orthopaedic market which has an increasing demand for ever more complex instrumentation to carry out minimally invasive and image guided procedures.

TMH has progressively been developing needle-free devices which are already successfully used in the market. TMH's own proprietary next generation device, the SQ-Pen, its latest spring powered re-usable system, has great potential in drug delivery worldwide. TMH also has several distribution agreements in place for the insulin market with its first needle-free device, named 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 the mhi-500 the first needle-free injection system for liquid pharmaceuticals to be available on the UK NHS Drug Tariff. In September 2004 TMH signed an agreement with Serono to develop and supply with a new needle free system for use with their human growth hormone. The market for human growth hormone drugs is expected to reach $2.2 billion by 2006 according to AS Insights.

TMH 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; Belgium, Holland, Luxembourg, Turkey; Canada; Egypt, New Zealand, China, Poland, Pakistan, Morocco and Ireland.

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