HLL to Produce Female Condom in India

[Guest guest]

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.

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.

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@...

http://www.femalehealth.com/PressReleasesAug99toCurrent/PressRelease5.

02.2002.htm

___________________________