SECOND QUARTER FY 2001 RESULTS

NET LOSS DOWN 57%; REVENUES INCREASE 7% 

CHICAGO (May 14, 2001) – The Female Health Company (OTC BB FHCO) today reported net revenues for the second quarter ending March 31, 2001 increased 7 percent to $1,449,297 from $1,349,718 in the same period in 2000. The increase comes on the heels of the 43 percent revenue increase experienced during the first quarter of fiscal 2001. The higher sales volume was primarily attributable to a substantial increase in shipments to domestic public sector customers during the aforementioned periods.

  The results were consistent with the expectations for the quarter. The Company expects significant quarter to quarter variation due to the timing of receipt of large orders, subsequent production scheduling, and shipping of products and demonstrates the Female Health Company’s continued progress in executing its long-term strategies for growth.  The Company believes that recent broadly publicized discussions among UNAIDS, major donor organizations, foundations and donor countries, to support aggressive education, prevention and treatment programs will favorably impact the demand for the Female Condom.

  The net loss for the second quarter was reduced 57% to $435,269 or $0.03 per diluted share, compared with a net loss of $1,019,149, or $0.08 per diluted share, for the same period in 2000. The reduction was a result of a reduction in both the operating loss and non-operating expenses.

  The Company’s operating loss for the three-month ended March 31, 2001 declined 51 percent to $284,019 from $584,576 for the same period last year. The reduction in the net operating loss was due to substantial reductions in operating expenses.

  Total operating expenses for the three-month ended March 31, 2001 declined 38 percent to $502,257 from $808,221 for the same period last year. The reduction was a result of a reduction of promotional, selling, general and administrative expenses during these periods.  This reflects continued implementation of the Company’s strategy to act as a manufacturer supplying public and private sector customers who assume virtually all marketing and distribution costs.

  Additionally, the Company experienced a $.3 million reduction of non-operating expenses to $117,702 for the current quarter compared to $401,833 for the same period during the prior fiscal year. The reduction was largely due to the Company not issuing new convertible debentures with a discount feature since June 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, 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 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 the Company’s Web site at www.femalehealth.com.

Contacts:        Investors                        Business / Product               Global Program         

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

                        231.526.1244                     312.280.1119 x223                    845-353-8298

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THE FEMALE HEALTH COMPANY

Unaudited Condensed Consolidated Balance Statement  

                                                         

				For the Three Months Ended
				March 31,
				2001		2000
NET REVENUES				$ 1,449,297		$ 1,349,718
GROSS PROFIT (LOSS)