Medical House Orthopaedic Ltd Agreement

The Medical House PLC ("TMH"), (AIM: MLH) the orthopaedic devices and drug delivery company today announces its subsidiary, Medical House Orthopaedics Ltd., has signed a two year agreement with a major International Orthopaedic Company, to manufacture and supply femoral head implants. The contract is expected to be worth approximately £850,000 over the initial term of the contract.

Medical House Orthopaedics will provide products on a consignment stock basis in return for a commitment from the International Orthopaedic Company to buy this product range.

Ian Townsend, Chairman, commented:

"Having concentrated on the design and manufacture of orthopaedic instruments for the last 15 years we are delighted at this opportunity to extend the Group's product range into orthopaedic implants. Medical House is well suited to the manufacture of orthopaedic implants and contracts such as the one we have
just signed, offers us the opportunity to diversify from our reliance on the more cyclical nature of the instrument market. We expect the facility we have created to manufacture implants will prove very successful and that the sales of this product will continue to grow."

For further information:
The Medical House PLC tel:0114 261 9011
Ian Townsend, Chairman www.themedicalhouse.com

Buchanan Communications tel:0207466 5000
Tim Anderson / Rebecca Skye Dietrich