Press Releases 1999
Press Releases 1998

February 1999 Press Releases

The Female Health Company Reports First Quarter Results

Female Health Retains $6 Million Equity-Based Credit Line

The Female Health Company to Begin Trading on OTC Bulletin Board

The Female Health Company Reports First Quarter Results

Net Loss Reduced

CHICAGO, Feb. 17 -- The Female Health Company
(OTC Bulletin Board: FHCO) today reported that the net loss for its fiscal
first quarter ending December 31, 1998 was reduced 12 percent to $962,040
($0.09 per diluted share) compared to a net loss of $1,093,435 ($0.11 per
diluted share) for the same period in 1998. The Company narrowed the
quarterly net loss despite lower unit sales volume and a favorable adjustment
to the operating results during the prior year period. Management attributes
the narrowing of the net loss to the ongoing program to reduce manufacturing
costs and reduce operating expenses.

First-quarter net revenues decreased 46 percent to $703,998 from
$1,305,804 in the same period in 1998. Unit sales for the first quarter
totaled 0.8 million versus 1.7 million units sold during the same period a
year ago. However, units shipped plus orders in-house totaled 3.4 million for
the first quarter versus 2.1 million first quarter 1998, an increase of 62
percent. Net sales for the prior year were significantly higher because of
product launches by new country-specific partners associated with the United
Nations Joint Programme on AIDS (UNAIDS).

Orders in-house totaled 2.6 million versus 0.4 million for the prior year
period. Net sales for the current quarter do not include any new country
launches, resulting in the decrease in net sales. The Company expects
significant quarter-to-quarter variation due to the timing of large single
orders as various countries launch the Female Condom or place re-orders. For
example, on January 27, 1999 the Company announced it had received an order
for 1.5 million units from South Africa, or more than 10 percent of its Fiscal
Year goal of 13.0 million units.

During the first quarter of 1998, the Company recorded a $250,000
favorable adjustment to reserves for obsolete inventory with a corresponding
reduction in the net loss for that period. There were no adjustments to
reserves for the current year's first quarter.

Reduced operating expenses are a continued reflection of the Company's
strategy to act as a manufacturer supplying public sector partners, like
UNAIDS, worldwide. Individual countries are responsible for virtually all
marketing and shipping costs. Therefore, the Company's expenses are not
expected to increase materially as unit volume increases.

Comparative Financial Highlights
(Dollar amounts in thousands, except per share data)

Three Months Ended
12/31/98 12/31/97 % Change
Net revenue $704 $1,305 (46%)
Gross Profit (Loss) $(157) $(275) --
Net Income (Loss) $(926) $(1,059) (12%)
EPS, basic and diluted $(0.09) $(0.11) NM
Average shares outstanding 10,441,227 9,544,403 14%

Units Shipped and Order Backlog
1999 Unit % Change Orders
Sales From 1998 In-house
1Q99 0.8 million (53%) 2.6 million

% Change 1998 Unit Orders
From 1998 Sales In-house
1Q99 550% 1.7 million 0.4 million

The Female Health Company, based in Chicago, owns certain worldwide rights
to The Female Condom including patents which have been issued in the United
States, United Kingdom, Japan, France, Italy, Germany, Spain, The People's
Republic of China, Canada, New Zealand, South Korea and Australia. The Female
Condom is the only available product controlled by a woman that protects
against sexually transmitted diseases including HIV/AIDS and unintended
pregnancy.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: The statements in this release which are not historical fact are
forward-looking statements based upon the Company's current plans and
strategies, and reflect the Company's current assessment of the risks and
uncertainties related to its business, including such things as product demand
and market acceptance; the economic and business environment and the impact of
governmental regulations, both in the United States and abroad; the effects of
competitive products and pricing pressures; currency risks; capacity;
efficiency and supply constraints; and other risks detailed in the Company's
press releases, shareholder communications and Securities and Exchange
Commission filings. Actual events affecting the Company and the impact of
such events on the Company's operations may vary from those currently
anticipated.


THE FEMALE HEALTH COMPANY
Unaudited Condensed Consolidated Balance Sheet

For the Period Ended
December 31, September 30,
1998 1998

Cash and equivalents $504,540 $1,480,287
Accounts receivable, net 461,770 1,138,274
Inventories, net 1,519,961 925,425
Prepaid and other current assets 253,683 395,293
Total current assets 2,739,954 3,939,279

Other assets 162,006 165,701
Intellectual property rights, net 872,900 924,319
Net property, plant & equipment 2,342,366 2,529,595
TOTAL ASSETS $6,117,226 $7,558,894

Notes payable, net of discount 915,888 837,139
Accounts payable 351,865 473,979
Accrued expenses 951,949 614,819
Debt due within one year 79,000 626,066
Preferred dividends payable 35,183 147,635
Total current liabilities 2,333,885 2,699,638

Long-term debt and capital leases -- 4,882
Deferred gain on sale of facility 1,703,557 1,766,611
Other long-term liabilities 134,792 153,186
Total liabilities 4,172,234 4,624,317

Total Stockholders' equity 1,944,992 2,934,577
TOTAL LIABILITIES AND EQUITY $6,117,226 $7,558,894



THE FEMALE HEALTH COMPANY
Unaudited Condensed Consolidated Income Statement

For the Quarter Ended
December 31,
1998 1997
NET REVENUES $703,998 $1,305,804
GROSS PROFIT (LOSS) (157,453) (274,849)
Advertising and promotion 92,463 168,921
Selling, general & administrative expenses 605,634 569,755
Total operating expenses 698,097 738,676
OPERATING LOSS (855,550) (1,013,525)
Interest, net and other expense 70,935 45,631
Pretax loss (926,485) (1,059,156)
Income taxes -- --
NET LOSS (926,485) (1,059,156)
Preferred dividends 35,555 34,279
NET LOSS ATTRIBUTABLE TO
COMMON STOCKHOLDERS (962,040) (1,093,435)
NET LOSS PER COMMON SHARE $(0.09) $(0.11)

Weighted average common shares 10,441,227 9,544,403

SOURCE The Female Health Company





Web site: http://www.femalehealth.com



CONTACT: William R. Gargiulo, Jr., Investor Relations of The
Female Health Company, 616-526-1244; or General, Carol Barbour,
312-266-7800, Analysts, Leslie Loyet, 312-640-6672, or Media,
Darcy Bretz, 312-640-6756, all of The Financial Relations Board

Female Health Retains $6 Million Equity-Based Credit Line

CHICAGO, Feb. 16 -- The Female Health Company
(OTC Bulletin Board: FHCO) announced that its $6 million, two-year,
equity-based line of credit will continue to be available to the Company on
the same terms as previously announced while the Company's Common Stock is
traded on the OTC Bulletin Board.

As announced on December 8, 1998, under the terms of the equity line the
Company has the right, subject to certain conditions, to draw up to $6 million
in cash in exchange for Female Health Company stock over a two-year period.
The Company's Common Stock began trading on the Over The Counter Bulletin
Board under the symbol "FHCO" on February 9, 1999 following its de-listing
from the American Stock Exchange on February 5, 1999.

The Female Health Company, based in Chicago, owns certain worldwide rights
to The Female Condom including patents which have been issued in the United
States, United Kingdom, Japan, France, Italy, Germany, Spain, The People's
Republic of China, Canada, New Zealand, South Korea and Australia. The Female
Condom is the only available product controlled by a woman that protects
against sexually transmitted diseases including HIV/AIDS and unintended
pregnancy.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: The statements in this release which are not historical fact are
forward-looking statements based upon the Company's current plans and
strategies, and reflect the Company's current assessment of the risks and
uncertainties related to its business, including such things as product demand
and market acceptance; the economic and business environment and the impact of
governmental regulations, both in the United States and abroad; the effects of
competitive products and pricing pressures; currency risks; capacity;
efficiency and supply constraints; and other risks detailed in the Company's
press releases, shareholder communications and Securities and Exchange
Commission filings. Actual events affecting the Company and the impact of
such events on the Company's operations may vary from those currently
anticipated.


CONTACT: William R. Gargiulo, Jr., Investor Relations of The
Female Health Company, 616-526-1244; or General, Carol Barbour,
312-266-7800, Analysts, Leslie Loyet, 312-640-6672, or Media,
Darcy Bretz, 312-640-6756, all of The Financial Relations Board

CHICAGO, February 9, 1999 - The Female Health Company (OTC BB: FHCO) announced today its common shares will commence trading on the OTC Bulletin Board under the symbol FHCO effective Wednesday, February 10, 1999. The move to the Bulletin Board follows delisting of the company's shares from the American Stock Exchange effective February 5, 1999.
Commenting on the change, The Female Health Company's President and Chief
Operating Officer, Dr. Mary Ann Leeper said, "We are pleased trading has begun on the Bulletin Board. It is a vibrant market on which shares of many
emerging growth companies are traded. We believe our shareholders will
continue to benefit from a liquid market in which to make transactions in our
shares. Quotes on The Female Health Company's shares, as well as news on the company, should continue to be available, using the new symbol, from a variety of sources including brokerage firms and numerous on-line sites."
The Company also announced that Dr. Leeper, discussed The Female Condom in a CNBC/Dow Jones video taped interview last week. This interview may be
accessed through the Company's web site, www.femalehealth.com and, for
CNBC/Dow Jones subscribers, at www.cnbcdowjones.com until March 1, 1999.
The Female Health Company, based in Chicago, owns certain worldwide rights to The Female Condom including patents which have been issued in the United
States, United Kingdom, Japan, France, Italy, Germany, Spain, The People’s
Republic of China, Canada, New Zealand, South Korea and Australia. The Female Condom is the only available product controlled by a woman that protects against sexually transmitted diseases including HIV/AIDS and unintended pregnancy. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements in this release which are not historical fact are forward-looking statements based upon the Company’s current plans and strategies, and reflect the Company’s current assessment of the risks and uncertainties related to its business, including such things as product demand and market acceptance; the economic and business environment and the impact of governmental regulations, both in the United States and abroad; the effects of competitive products and pricing pressures; currency risks; capacity; efficiency and supply constraints; and other risks detailed in the Company’s press releases, shareholder communications and Securities and Exchange Commission filings. Actual events affecting the Company and the impact of such events on the Company’s operations may vary from those currently anticipated.

For more information about The Female Health Company toll-free via fax,
dial 1-800-PRO-INFO and enter company code "FHC." 

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