For Immediate Release 6 May 2008

The Medical House PLC

Cash Settlement following disposal of Sub-contract Machining Division

The Medical House PLC (“TMH” or the “Group“), (AIM:MLH) the drug delivery specialist, is pleased to announce that following the sale of its sub-contract engineering subsidiary, Eurocut Limited (“Eurocut”), to Semes Limited (“Semes”) in December 2007, the assets of that business have now been sold to Sandvik Medical Solutions Limited. This will result in TMH receiving a cash sum which is expected to be in the region of £0.5m.

This will clear all bank debt of the Group, resulting in a position which is broadly cash neutral.

Following the deal, TMH will also withdraw from any involvement in the orthopaedic market for a period of time.

Ian Townsend, Chairman, The Medical House PLC, said:
“We are delighted that this transaction leaves TMH in a stronger financial position. Although we could have hoped to receive more, we believe that in the current climate it is prudent to take a lesser sum now rather than speculate that a higher amount may be received later. This allows us to concentrate all our resources on our various drug delivery projects and opportunities and we look to the future with confidence.”

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For further information:
The Medical House PLC tel: 0114 261 9011
Ian Townsend, Chairman www.themedicalhouse.com
Bryan Bodek, Deputy Chairman.
David Urquhart, Managing Director

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

NomuraCode SecuritiesRichard Potts tel: 020 7776 1200