Issue of Equity

Futura Medical PLC
04 July 2006


For Immediate Release                                                4 July 2006



                               Futura Medical plc

             Proposed Issue of Equity and Directors' Share Dealing

Futura Medical plc (AIM: FUM), the AIM-quoted pharmaceutical and medical device
group that develops innovative products for sexual health, is pleased to
announce that it intends to raise up to £2.5 million, after costs, by way of a
placing ('the Placing'), to be carried out jointly by Canaccord Adams Limited
and Collins Stewart Limited, of up to 3,400,000 new ordinary shares at 78 pence
per share ('the Placing Shares').  The money raised from this Placing will be
used for the clinical development program of MED2002 and for new product
evaluation.

The Placing is conditional on execution of a placing agreement between the
Company, Canaccord Adams Limited and Collins Stewart Limited and admission of
the Placing Shares to AIM.  In addition in respect of 966,000 of the Placing
Shares, the Company requires shareholder authority which is the subject of
Resolution 4 to be proposed at the Company's Annual General Meeting to be held
on 6 July 2006.  If Resolution 4 is not passed at the annual general meeting,
the Company will use its existing shareholder allotment authorities to allot up
to 2,434,000 of the Placing Shares.

It is intended that application will be made for the Placing Shares to be
admitted to trading on AIM later today.  It is expected that, conditional on the
matters set out above, admission to trading and dealings in the Placing Shares
will commence at 8.00am on or around 10 July 2006.

In addition, Futura announces that the following Directors intend, subject to
the conditions set out below, to exercise options over 2,125,000 ordinary shares
of 0.2 pence each in the capital of Futura ('Ordinary Shares') in aggregate, and
subsequently to sell on Admission at a price of 78 pence per share, 1,313,759 of
the Ordinary Shares allotted in aggregate. In addition, it is the intention of
certain staff to exercise and sell options over 110,000 Ordinary Shares in
aggregate, also at 78 pence per share.  Therefore, the total number of shares
being sold on behalf of option holders will amount to 1,423,759 Ordinary Shares
('Sale Shares'). These option exercises described above are conditional upon
completion of the placing of 2,434,000 of the Placing Shares and there being
sufficient buyers for the Sale Shares.  Full details of the proposed
arrangements are set out in the table below.  The Directors have no current
intention of selling any further Ordinary Shares. The exercise period of these
options would have expired on 31 January 2007.

     Name         Position    Number of    Number of   Sale price   Directors'      Directors'
                               options    shares sold  per share    holding pre    holding post
                              exercised                (in pence)    exercise        exercise
WD Potter       Chairman       375,000    293,902         78 p               Nil           81,098
JH Barder       CEO            250,000    183,285         78 p           551,497          618,212
DB Davies       Director      1,000,000   606,877         78 p            15,152          408,275
AL Clayden      Director       500,000    229,695         78 p               Nil          270,305



(i)                              JH Barder's holding includes shares
beneficially owned and held by connected parties.

(ii)                            Each Director (other than DB Davies) intends to
sell sufficient shares to pay only the costs of exercise and all relevant tax
and national insurance liabilities retaining the balance therefore not realising
a cash profit.

(iii)                           In addition DB Davies has sold sufficient shares
to realise a cash profit of £30,000.

(iv)                          The total proceeds to Futura from the intended
exercise of the Directors and staff options will amount to £ 831,250.  Together
with the net proceeds of the Placing, Futura will receive £3.35 million.



For further information:
Futura Medical plc
James Barder, Chief Executive                          Tel: [phone]
mailto:[e-mail]                  www.futuramedical.co.uk
Canaccord Adams Limited
Mark Ashurst                                           Tel: [phone]
Collins Stewart Limited
Philip Roe                                             Tel:+ 44 (0) 207 523 8323



Media enquiries:
Buchanan Communications
Mark Court                                             Tel: [phone]


www.futuramedical.co.uk




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