01 Febuary 2006

Details of ASI Disposable AutoSafety Injector Deal Announced on 7 June 2005

Partner: Macarthy’s Laboratories Limited/Martindale Products and Specials

Product: ASI Disposable Autoinjector

The Medical House PLC (TMH) (AIM: MLH) the drug delivery and orthopaedic devices company, announced on the 7 June 2005 the initial deal for its disposable AutoSafety Injector (ASI) technology. For reasons of commercial and market confidentiality TMH were unable to reveal the details until now.

• The details are as follows:
  Martindale Products and Specials (“Martindale”) is TMH’s partner in an initial five-year contract to supply the ASI disposable autoinjector system, for use with an as-yet undisclosed pharmaceutical product, in the United Kingdom. The combined product which will incorporate TMH’s revolutionary disposable autosafety injector technology and Martindale’s pre-filled syringe is expected to be launched early in 2006.
  
• Assuming Martindale’s minimum purchase commitments are achieved, revenue to TMH in respect of the UK is anticipated to be approximately £3 million over the five-year initial contract period. The companies are in continued negotiation to extend the territories covered by the terms of the contract, which would correspondingly increase the revenue potential. As well as granting Martindale exclusive rights for use of the ASI in the UK for this particular drug, the agreement also grants Martindale certain rights to expand the collaboration to include the use of the ASI with other specified drugs.

The ASI is a disposable, needle-based autoinjector technology developed by TMH, which offers a simple, safe and cost-effective means of self-injection by patients. The ASI offers a number of advantages including convenience and access to life-saving drugs in emergency situations.

The ASI incorporates pharmaceutical products in standard pre-filled syringes and is suitable for use with a wide range of drugs and formulations. A hidden needle feature addresses patients’ aversions to needles, whilst the automatic retraction of the needle after injection significantly decreases the risk of any needlestick injuries and disease transmission associated with used needles. Use of existing drug formulation and packaging means that the process of regulatory approval and market launch can be simplified and shortened.

Andy Oades, Managing Director of Martindale Products and Specials, said:
“We see this partnership with The Medical House as a means of expanding our injectables business both by adding value to existing products and by creating competitive advantages for our product portfolio in future. The advantages of convenience, lifesaving capabilities and cost advantages associated with self-injection are very clear. The ASI is an easy-to-use, safe and intuitive technology, which can provide us with a competitive advantage, and the intention of both parties is to explore the development of this relationship both in terms of geography and application of the ASI technology. ”

Ian Townsend, Chairman, The Medical House, said:
“We are very pleased to have formed this alliance with Martindale Products and Specials, representing a considerable endorsement of our strategy to develop simple, safe and cost-effective self-injection systems which address pharmaceutical industry preferences for incorporating drugs in existing formulations and packaging.

This eliminates many of the potential regulatory hurdles associated with competing drug delivery systems. Following our earlier successes with needle-free delivery systems, the creation of the ASI range of disposable needle-based autoinjectors represents a significant strategic development for The Medical House, as it enables us to offer drug delivery solutions for virtually any liquid injectable drugs. The range of opportunity which we continue to see in the ASI autoinjector indicates that this is a technology with significant future applications and a source of potential growth for our business.”

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

Buchanan Communications tel: 020 7466 5000
Tim Anderson / Rebecca Skye Dietrich /Lisa Baderoon