For Immediate Release 3 March 2005

The Medical House PLC

Placing of 7.4 million shares

Medical House PLC (“TMH”), (AIM:MLH) the orthopaedic devices and drug delivery company, today announces the proposed placing of 1,500,000 new ordinary shares of 1p each (“new Ordinary Shares”) at 68 pence per share, conditional, inter alia, on admission of the new Ordinary Shares to trading on AIM, to raise approximately £1 million for general working capital purposes.

Application will be made for the new Ordinary Shares, which represent approximately 2.5 per cent of the current issued ordinary share capital of the Company, to be admitted to trading on AIM. Trading in the new Ordinary shares, which will rank pari passu in all respects with the existing ordinary shares, is expected to commence on 9th March, 2005.

Directors’ shareholdings
In order to satisfy strong institutional demand, Code Securities Limited has also placed 5,884,000 existing ordinary shares of 1p each in the Company (“Existing Shares”) at 68 pence per share on behalf of Ian Townsend and Gerry Kemp, who are founder directors of the Company, as follows:-

* Pension Fund in which I Townsend and G Kemp have a beneficial interest.

Ian Townsend, Executive Chairman, said:
"I am very pleased to be placing this level of stock in response to strong institutional demand and to be increasing overall liquidity. The Medical House has made strong progress over the last six months, Eurocut, our orthopaedic division has shown record turnover growth and the £1m in working capital will be used to expand capacity in this area. Our recent deal with Serono has validated our drug delivery device technology on a global scale and we look forward to additional interest in this area."

For further information:
The Medical House PLC
Ian Townsend Tel: 0114 261 9011

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

Code Securities Limited
Chris Collins Tel: 020 7024 2000

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