The Female Health Company Reports

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First Quarter Results

CHICAGO, February 17, 2004- The Female Health Company (OTC BB FHCO) today reported net revenues of $2,328,748 and net loss attributable to common stockholders of $655,292 ($0.03 per diluted share) for the three months ended December 31, 2003 compared to revenues of $2,243,940 and a net loss attributable to common stockholders of $486,534 ($0.03 per diluted share) for three months ended December 31, 2002.

Net revenues increased $84,808 in the current quarter, or 4%, compared with the same period last year. This is consistent with the Company’s expectations and demonstrates the Female Health Company’s continued progress in executing its long-term strategies for growth. The Company expects significant quarter to quarter variation due to the timing of receipt of large orders, subsequent production scheduling, and shipping of products.

Gross profit decreased $147,247, or 14%, to $874,231 for the three months ended December 31, 2003 from $1,021,478 for the three months ended December 31, 2002. The decrease was a result of expanding net revenues offset by a more than proportionate increase in cost of products sold. The rise in cost of products sold is primarily a result of adverse exchange rate fluctuations and higher material, labor & indirect production costs for the current quarter compared to the same period last year.

Selling, general and administrative expenses increased $206,325, or 23%, to $1,116,633 in the current quarter from $910,308 for the same period last year. The increase was primarily a result of non-cash expense for restricted stock grants associated with the implementation of the Company’s Executive Compensation program during the quarter as well a rise in outside consulting fees and an adverse exchange rate based increase in UK operating expenses.

Non-cash stock compensation costs decreased $276,075 to $47,898 for the current quarter compared to $323,973 for the same period last year. During the prior year the Company recorded charges related to accounting for changes in stock option plans and compensation for investor relation services. During the current quarter the Company did not incur any charges related to accounting for stock option plan changes and was able to reduce the compensation paid for investor relation services.

Net interest and other expenses increased $67,605 to $316,199 for the current period from $248,594 for the same period last year. The current quarter increase resulted from the Company incurring a larger amount of non-cash expenses relating to the amortization of discounts on notes payable and credit facility than the first quarter of the prior year. This increase is due to the consistent utilization of the Effective Interest method which requires expensing a larger portion of the discount during the final portion of a note/credit facility’s life.

The Female Health Company, based in Chicago, owns certain worldwide rights to FC 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. FC 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 Action of 1995: The statements in this release which are not historical fact are forward-looking statements based upon the Company’s current plan 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 government pressures; currency risks; capacity; efficiency and supply constraints; and other risks detailed in the Company’s press releases, shareholder communication 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, dial toll-free via fax, 1-800-PRO-INFO and enter company code “FHCO”. Also, visit the Company’s web site at www.femalehealth.com and www.femalecondom.org. If you would like to be added to an e-mail alert list, please send an e-mail to FHCInvestor@aol.com .

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