CHICAGO, Dec. 4 /PRNewswire-FirstCall/ -- The Female Health Company (OTC:FHCO) (BULLETIN BOARD: FHCO) today reported financial results for the fourth quarter and full-year of fiscal 2006. HIGHLIGHTS: -- 4th Qtr. Revenue: $4.4 million up 47% over 4th Qtr. of FY2005 -- FY2006 revenue: $14.8 million up 33% year over year -- 4th Qtr. net income: $52,105 up $189,001 from 4th Qtr. FY2005 loss of ($136,896) -- FY2006 net income: $120,778 up $1,637,641 from FY2005 loss of ($1,516,863) -- Cash: $2,065,134 up $290,068 or 16% from FY2005 Quarterly Results: For the fourth fiscal quarter ended September 30, 2006, the Company reported revenue of $4,422,103, as compared with $3,001,321 for the comparable period last year, an increase of $1,420,782 or 47%. The revenue growth resulted from increased demand from the global public sector. Net income attributable to common shareholders was $52,105 or $.00 per diluted share versus a net loss of $(136,896), or $(.01) per diluted share for the three months ended September 30, 2005. Full Year Results: For the year ended September 30, 2006, the Company reported total revenues of $14,824,242 compared with revenues of $11,161,555 for the prior year, an increase of $3,662,687 or 33%. During fiscal year 2006, the Company sold 19.6 million units, up 41% from fiscal year 2005. Net income attributable to common shareholders for the year ended September 30, 2006 was $120,778 ($.01 per diluted share), an $1,637,641 improvement over the fiscal year 2005 loss of $(1,516,863), or ($(.07) per diluted share). The Company expects significant quarter to quarter variations due to the timing of large orders and shipment. About the Female Health Company. 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 90 developing countries around the world. World-wide, the Female Condom is available in various programs in 108 countries. 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 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 . THE FEMALE HEALTH COMPANY Unaudited Condensed Consolidated Balance Sheet September 30, September 30, 2006 2005 Cash $1,827,393 $1,775,066 Restricted cash 237,741 - Accounts receivable, net 3,160,801 2,040,476 Inventory 1,011,672 883,709 Prepaid and other current assets 582,457 344,383 Total current assets 6,820,064 5,043,634 Other non-current assets 187,940 277,368 Net property, plant & equipment 437,766 358,149 TOTAL ASSETS $7,445,770 $5,679,151 Accounts payable $599,022 $559,414 Accrued expenses 970,439 664,709 Preferred dividends payable 11,210 11,201 Total current liabilities 1,580,671 1,235,324 Deferred gain on sale of facility 1,092,775 1,134,003 Total liabilities 2,673,446 2,369,327 Total stockholders' equity 4,772,324 3,309,824 TOTAL LIABILITIES AND EQUITY $7,445,770 $5,679,151 THE FEMALE HEALTH COMPANY Unaudited Condensed Consolidated Income Statements For the 3 Months Ended For the 12 Months Ended September 30, September 30, 2006 2005 2006 2005 NET REVENUES $4,422,103 $3,001,321 $14,824,242 $11,161,555 GROSS PROFIT 1,513,908 1,235,411 5,489,409 4,043,833 Advertising and promotion 60,237 77,418 218,500 123,103 Selling, general & administrative 1,276,759 1,185,800 4,819,678 4,958,208 Research and development 95,360 72,598 210,876 273,776 Total Operating Expenses 1,432,356 1,335,816 5,249,054 5,355,087 OPERATING INCOME(LOSS) 81,552 (100,405) 240,355 (1,311,254) Interest, net and other expense (11,196) (4,153) (41,671) 44,402 Pretax income (loss) 92,748 (96,252) 282,026 (1,355,656) Income taxes - - - - NET INCOME(LOSS) 92,748 (96,252) 282,026 (1,355,656) Preferred dividends 40,643 40,644 161,248 161,207 NET INCOME(LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS $52,105 $(136,896) $120,778 $(1,516,863) BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE $0.00 $(0.01) $0.01 $(0.07) Weighted avg. common shares - Basic and Diluted 24,285,630 23,468,080 23,948,729 23,094,868 DATASOURCE: The Female Health Company 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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