The Medical House PLC

ASI Disposable Autoinjector Project Agreement

The Medical House PLC ("TMH"), (AIM:MLH) the drug delivery and orthopaedic devices company, is pleased to announce that following on from the announcement made in December 2005, it has been commissioned by an undisclosed European Government Agency to enter into a second phase of development for a system based on TMH's ASI disposable autoinjector technology for the emergency administration of specific pharmaceutical compounds.

The agreement involves TMH developing and manufacturing devices, according to defined operational and functional requirements, for technical assessment, over an anticipated 12 month project duration.

Under the terms of the agreement, TMH will receive up to £1m, subject to achieving agreed milestones, in relation to the cost of the project including associated design and development activities.

Ian Townsend, Executive Chairman, The Medical House PLC, said:

"We are delighted to be entering into the next phase of this very important project which is very significant for both The Medical House and the Government Agency. This project represents our largest development project to-date and provides further high quality endorsement of the strength and flexibility of our ASI autoinjector technology. The ASI’s particular strengths relate to simplicity of the underlying technology and its ease of use, which make the ASI ideally suited to customisation for specific client requirements, especially so in the case of emergency injection."

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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 –

About The Medical House (TMH)
There is a growing trend in the pharmaceutical industry towards the use of needle-based disposable autoinjectors for self-injection. The ASI is TMH’s first autoinjector system, following development of a range of needle-free devices, which are already successfully in use. TMH’s ASI autoinjector technology allows injections to be easily and safely undertaken by patients themselves or by other non-clinicians such as family members and colleagues and are applicable to both elective therapies and emergency situations.

In December 2006, TMH announced that it had entered into a development, licence and supply agreement for the ASI with a leading global pharmaceutical partner, for delivery of an as-yet undisclosed drug. TMH’s revenues from this agreement, consisting of development, supply and technology access fees, are projected to be in the region of £27m over an initial five year period, with technology access fees comprising approximately £18m of these revenues.

TMH signed its first deal for the ASI in June 2006 with Martindale Products and Specials, part of Cardinal Health Inc, in an initial five-year contract to supply the ASI system for use with an as-yet undisclosed pharmaceutical product, in the United Kingdom. The combined product, which will incorporate TMH’s ASI and Martindale’s pre-filled syringe, is expected to be launched early in 2007. The agreement has projected revenues for TMH of £3m over an initial supply period of 5 years.

In December 2005, TMH announced an agreement with a European Government Agency to develop an emergency autoinjector for specific pharmaceutical products. Within this project, TMH’s client is making the required capital investment and covering the costs of design and development.

In September 2004, TMH signed an agreement with Serono to develop and supply a new needle free injector for use with its human growth hormone. This licence and supply agreement is for an initial period of 5 years with projected revenues for TMH of £4.3m.

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

Historically, the majority of the Group’s turnover has come from its orthopaedic company, Eurocut Limited, which designs and manufactures instruments and systems used in orthopaedic procedures for many of the world’s leading orthopaedic companies. With the increasing significance of its drug delivery division the group is considering its options for Eurocut.

More information about the company can be found at www.themedicalhouse.com.