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The Female Health Company Reports 267% Increase in Second Quarter Earnings
Date:5/14/2008

ing the first half of our 2008 fiscal year," noted O.B. Parrish, Chief Executive Officer of The Female Health Company. "Growing acceptance of the female condom as the only available barrier contraceptive method controlled by women that allows them to protect themselves against HIV/AIDS is the basis for our growth. The FC Female Condom is now available in over 100 countries, and we believe it will play an increasingly important role in the global battle against HIV/AIDS in the future."

"Orders for our second-generation female condom, the FC2, have continued to increase, and we now have four FC2 production lines in Malaysia. Our partner in India, Hindustan Latex Ltd., is operating a production line in that country, which has a population of over one billion people and a rapidly increasing incidence of HIV/AIDS. Lower manufacturing costs for FC2 allow us to sell the second-generation product to public health agencies at a significantly lower price than the FC1, while providing a higher gross profit margin on revenues. This was evident in an expansion in our gross profit margin to 41.5% in the first half of FY2008, from 34.8% in the first half of the previous year."

"In early April, FHC provided earnings guidance for the first time for the full fiscal year 2008. We indicated that we expected unit sales for FY 2008 to increase 20-25% over the 25.9 million units sold in FY 2007 and pre-tax income to increase 100% to 125% over the $868,913 recorded for FY 2007. We confirm the unit sales guidance for FY 2008. We now expect pre-tax income to increase 150-200% over the FY 2007 figure."

"We are optimistic regarding the outlook for The Female Health Company. Our team members are now working with organizations in nearly all regions of the world, from Brazil to Cambodia, from the United Kingdom to India, from New York to South Africa. Given the gravity of the HIV/AIDS pandemic, our results are an indicator of the even greater contribution the female condom wi
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SOURCE The Female Health Company
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