Expansion Anticipates That Second-Generation Female Condom Will Play Key Role in Global Battle Against HIV/AIDS CHICAGO, Sept. 26 /PRNewswire-FirstCall/ -- The Female Health Company (OTC:FHCO) (BULLETIN BOARD: FHCO) today announced plans to install a third production line for its FC2 Female Condom(TM), increasing its annualized production capacity for the second-generation product to approximately 21 million units. This is in addition to the Company's existing capacity to produce its first generation FC1 Female Condom(TM) at its plant in London. Currently, The Female Health Company is manufacturing its second- generation FC2 product on one production line in Malaysia. A second production line is scheduled to come on line in India. Today's announcement that a third production line will be installed (in Malaysia) will bring the total capacity to manufacture FC2 female condoms at an annualized rate of approximately 21 million units by February 2007. "Based upon our discussions with major public sector customers that are involved in the global battle against the HIV/AIDS pandemic and Hindustan Latex Limited (HLL) our partner in India, we have elected to add a third FC2 production line," stated O.B. Parrish, Chief Executive Officer of The Female Health Company. The demand for the female condom has been increasing rapidly with revenue growth of 24% for FY 2005 and 27% for the first nine months of FY 2006. "We look forward to making FC2 available to public health organizations throughout the world at lower prices than our FC1 Female Condom(TM), due to the reduced capital and manufacturing costs involved in the production of our second-generation product. We believe FC2 can play a critical role in world health by allowing more women to protect themselves against unintended pregnancy and sexually transmitted diseases including HIV/AIDS." "Following the Company's recent announcement that it had been advised by the World Health Organization that FC2 meets international health standards and the receipt of registration by governmental authorities in India, we expect demand for FC2 to accelerate significantly during our fiscal year that begins next month," continued Parrish. The Company will immediately begin to fill new orders with FC2 wherever proper approvals exist to do so. A new production line for FC2 can be installed in approximately six months subsequent to initiation of the project. This modular design allows our Company to respond quickly to increases in demand, and management will consider the installation of FC2 production lines as demand increases. About The Female Health Company, Inc. The Female Health Company, based in Chicago, Illinois, manufactures and markets the FC Female Condom(R), which is primarily distributed by public health organizations and donor groups in over 70 countries around the world. The Company owns certain worldwide rights to the FC Female Condom(R), including patents that have been issued in the United States, United Kingdom, Japan, France, Italy, Germany, Spain, the European Patent Convention, the People's Republic of China, Canada, South Korea and Australia. FC Female Condom(R) is the only available FDA approved product controlled by a woman that offers dual protection 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 plan 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 government 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 website at http://www.femalehealth.com/ and http://www.femalecondom.org/ . If you would like to be added to the Company's e-mail alert list, please send an e-mail to . DATASOURCE: The Female Health Company, Inc. CONTACT: William R. Gargiulo, Jr., +1-231-526-1244, or Donna Felch, +1-312-595-9742, both of The Female Health Company Web site: http://www.femalehealth.com/ http://www.femalecondom.org/

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