THE FEMALE HEALTH COMPANY REPORTS:

DURBAN, SOUTH AFRICA, 11 July 2000 - A team of international researchers today presented findings at the XIII International AIDS Conference that demonstrate the cost-effectiveness of The Female Condom in preventing sexually transmitted diseases (STDs), including HIV/AIDS. 

The Chicago-based Female Health Company owns certain worldwide rights to The Female Condom, the only available product controlled by a woman that protects against sexually transmitted diseases including HIV/AIDS, and unintended pregnancy, and helps design, test and implement Female Condom programs.

 "We conclude that well-designed Female Condom programs are likely to be highly cost-effective and can save public sector health funds," said lead researcher Elliot Marseille, Dr. P.H., M.P.P., Health Strategies International and the University of California, San Francisco. 

The findings presented were part of a study titled "Cost-Effectiveness of the Female Condom in Preventing HIV and STDs in Commercial Sex Workers in Rural South Africa." In this study, the authors assessed the cost-effectiveness of The Female Condom in preventing HIV infection and other STDs among commercial sex workers and their clients in the Mpumulanga Province of South Africa. Current male condom use was compared with expected use of male and female condoms during a one-year program of Female Condom distribution to 1,000 commercial sex workers with an average of 25 clients per year.

 A simulation model calculated health and public sector costs assuming five years of HIV infection, one month of syphilis and gonorrhea infection, and Female Condom use in 12 percent of episodes of vaginal intercourse. The intervention is estimated to prevent 5.9 HIV, 38 syphilis, and 33 gonorrhea cases while saving the public sector health payer $9,116. Sensitivity analyses indicate that the finding of cost savings or cost-effectiveness is robust across a wide range of values for key inputs.

The researchers conclude that a well-designed female condom program oriented to commercial sex workers and other women with casual partners is likely to be highly cost-effective and can save public sector health funds. In addition to being presented at the International AIDS Conference, the study has been accepted for publication in The Journal of Social Science and Medicine.

The Female Health Company, based in Chicago, owns certain worldwide rights to The Female Condom 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. 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. 

William R. Gargiulo, Jr.      Mary Ann Leeper,Ph.D.        Yvette Anne Venable

231.526.1244                        312.280.1119               312.397.6036  

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