Female Health Receives British Government Grant to Introduce the Female Condom in India

CHICAGO, May 6, 2002 – The Female Health Company (OTC Bulletin Board: FHCO) today announced that it has received a grant from the British Government for marketing and manufacturing the Female Condom in India in partnership with Hindustan Latex Limited (HLL).

The grant from the Business Linkages Challenge Fund (BLCF) will support FHC and HLL’s three-year, £2 million ($2.84 million) project that includes three phases of activity. The first phase to begin immediately is an expanded market study of the Female Condom (FC) in multiple sites in India to better understand the market and prepare the key elements for the full strategic introduction. With evidence of a market for FC in India, the partners can then proceed to the next phases of full-scale marketing and part-manufacturing in India. FHC and HLL will work closely with the Indian Ministry of Health and Family Welfare and various non-governmental organizations (NGOs).

India has the second highest number of people living with HIV/AIDS estimated at 3.97 million.

“We are delighted to receive this grant for supporting a linkage between our UK manufacturing company and  HLL in India,” said Dr. Mary Ann Leeper, president of the Female Health Company. “We are determined to develop a comprehensive strategy for the introduction of the Female Condom in India so that it can contribute to India’s expanded response to the terrible HIV/AIDS pandemic. With this grant, FHC and HLL can move quickly to implement cost-effective marketing, education outreach and manufacturing activities for FC in India.  This innovative partnership will have immediate public health benefits in India and throughout the developing world and will also provide economic development and capacity building in India.”

The BLCF is a cost-sharing grant scheme that provides grants to enterprises to achieve the British Government’s objective of developing commercially sustainable business linkages that bring benefits to the poor. It is a way of working in partnership with the private sector towards the goal of poverty eradication. Funding for the BLCF comes from the British Government’s Department for International Development (DFID).

The grant will provide FHC and HLL up to 50% of the full project costs, with FHC and HLL sharing the balance of costs. FHC will manage the overall project to ensure sufficient demand for the product is created at community level and that mechanisms are in place to meet this demand. HLL will contribute marketing resources, space, technical staff and equipment and will integrate the Female Condom into its existing social marketing projects.

“The Female Condom must be made widely available throughout India so that women and men in our country have this crucial additional option for preventing new infections,” said G Rajamohan, Chairman and Managing Director of HLL. “Our collaboration with FHC is an important innovation in applying private sector expertise to an escalating public health crisis.”

FHC and HLL have convened a Technical Advisory Committee to provide strategic guidance to the project. The Committee will be chaired by Dr. P.L. Joshi, Joint Director (Technical) of the National AIDS Control Organisation (NACO) and include representatives from the Ministry of Health and Family Welfare, State AIDS Control Societies, donor agencies, NGOs , the professional association of obstetricians and gynecologists and both companies.  

“FHC and HLL are committed to working with a wide range of partners to build a broad network of trained professionals and programs to ensure long-term sustainability and public health impact,” said Dr. Leeper. “Together, we will be better able to expand Female Condom accessibility and use throughout India, the rest of Asia and the developing world.”

UNAIDS supported studies show that when the Female Condom is available as an option, there is a significant reduction in the incidence of sexually transmitted disease (STD) compared to when only the male condom is available. Additional published research highlights that incorporating the Female Condom into prevention programs can be cost saving as it reduces the number of unprotected sexual acts, the incidence of STDs, and the costs related to treatment and care. 

The Female Condom is the only product controlled by women that helps to prevent STDs, including HIV/AIDS and unintended pregnancy. It is made of polyurethane, which is strong and unlikely to rip or tear during use and unlikely to cause allergic reactions. It is manufactured in a state of the art facility in London, England. 

The Female Health Company, based in Chicago, owns certain worldwide rights to The Female Condomä, including patents that 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. 

HLL, a Government of India Undertaking, was established in 1966 to make superior quality male condoms widely available in India, now the world’s second most populated country with over one billion people. HLL has subsequently launched numerous brands of condoms and also manufactures oral contraceptive pills, intra-uterine devices, latex gloves, blood bags, shunts and sutures. HLL is a leading social marketing organization implementing health sector projects for population stabilization and HIV/AIDS control. 

“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 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 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 FHC’s Websites at www.femalehealth.com and www.femalecondom.org and HLL’s website at www.hindlatex.com.  If you would like to receive future press releases electronically, please send an e-mail to fhcinvestor@aol.com

Contacts:        Investors                        Business / Product               Global Program         

                        William R. Gargiulo, Jr.     Mary Ann Leeper, Ph.D.           Mitchell Warren

                        231.526.1244                      312.595.9123                           845.353.8298