Company News

24 JANUARY 2005

SEXUAL HEALTH GROUP PLC
(“Sexual Health Group” or “the Company”)

WORLDWIDE MARKETING RIGHTS AWARDED TO SEXUAL HEALTH GROUP FOR SUTHERLAND LUBRICATING JELLY AND RELATED NHS CONTRACT WON

Following the Company’s 10th January flotation, the Board of Sexual Health Group, a national supplier of sexual health products to customers including the National Health Service (“NHS”), announces today that it has reached an agreement with Sutherland Group Holdings Ltd, a company controlled by Chief Executive, George Sutherland, for the worldwide rights to market and distribute Sutherland Lubricating Jelly.

In the Keynote® OTC Pharmaceuticals 2004 Report, the retail sales via over the counter pharmacy (“OTC”) for feminine care and lubricating jelly in 2003 was £19.4 million in the UK alone.

In the opinion of the Board, the market size for the NHS is difficult to determine, the NHS, in volume terms, is estimated to be by far the larger market with the product category used by many areas of the NHS including: GP surgeries, Sexual Health Clinics, Gynaecology, and Surgery.

Sutherland Lubricating Jelly is a sterile water based lubricant that, due to the nature of its use, has been classified as a medical device under the European Directive and therefore carries the ‘CE’ quality mark. It is available in tubes as well as single use sachets that have been designed to reduce the incidence of cross contamination.

Furthermore, Sexual Health Group, via its subsidiary Condomania, has been successful in adding the Sutherland Lubricating Jelly range to the NHS England Contract, with effect from 18th January 2005 – this will enable all English Trusts to access the products via the NHS. Initial orders have already been shipped to NHS depots, which will be marketed by the Company in addition to the Condomania® condom range.

Today’s news closely follows the Company’s commencement of trading on OFEX, where it announced its successful fundraising of GBP354,200 at 16p per Ordinary share.

Commenting on today’s announcement, Chairman, John French, stated: “We are delighted at today’s news. This is the first of several deals in the pipeline that will strengthen our position as a supplier to the NHS, and the marketplace in general. The product range fits perfectly with the Company’s objective of becoming a leading sexual health supplier. “

“It is highly encouraging that, within such a short period following Sexual Health Group’s flotation, the Company is already seeing benefits.”

The Directors of the Issuer accept responsibility for this announcement.

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