COMPANY  REPORTS:               

Brazil orders two million female condoms for project expansion

Female-controlled protection is central to prevention strategy

CHICAGO, 8 June 2001 – The Female Health Company (OTC Bulletin Board: FHCO) today announced that it signed a contract with the Ministry of Health of Brazil to provide two million Female Condoms over the next nine months for the Ministry’s groundbreaking national AIDS program. 

The Brazilian AIDS program has been at the forefront of international AIDS prevention and care strategies, and the female condom has been an important component of the national response for several years. Since 1998, the Ministry of Health has ordered more than four million Female Condoms.

In addition, DKT do Brasil, FHC’s marketing partner in Brazil has distributed an additional two million Female Condoms since 1997.

“We are delighted with the continued growth and expansion of the role of the Female Condom in Brazil. The Ministry of Health in Brazil has truly been at the cutting-edge of AIDS prevention by creating a well-balanced strategy that provides a continuum of prevention, treatment and care. We are working aggressively with Ministries of Health, international donors and public health organizations to replicate the Brazil experience, to lay out a long term fully integrated global strategy of prevention programs which include female and male condoms” said Dr. Mary Ann Leeper, president of the Female Health Company.

“The global discussion must focus on prevention as well as treatment and implement action plans quickly because HIV/AIDS infection rates continue to rise drastically. Prevention is today’s best hope of reversing the rising tide of infection.  The experience in Brazil shows that women who learn about the Female Condom, cry out for this method because they can control and use it themselves,” said Dr. Leeper.

The success of the Female Condom in Brazil is based on a rigorous introduction study conducted two years ago. The one-year pilot project in six cities with 2,400 women from varying cultural backgrounds found a strong level of Female Condom acceptability and continuity of use. The response in terms of initial uptake, acceptance and continued use of the Female Condom exceeded the expectations of the Ministry of Health and provided important information for the Ministry to develop a coherent Female Condom policy.

The Brazil study also confirmed the increase in overall protected sex acts by having the Female Condom available as a choice. When the Female Condom was introduced, the proportion of sexual acts protected by either a male or female condom at last sexual intercourse increased from 31 percent to 65 percent. Most important, all women who were HIV-positive and sexually active, used or continued to use the Female Condom during the study period.

The Ministry of Health developed an expanded, national program to further stimulate the adoption of the Female Condom and purchased two million additional female condoms in 2000. The project is now delivering protection to over 13,000 women throughout Brazil, and this new order will allow the Ministry to continue and expand the project.

Use of the female condom has been highest among those women and men who were reached through programs that favored community effort and educational outreach. This finding is consistent with programs elsewhere and is a model for other countries to develop and expand Female Condom introduction strategies.

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.

“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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