MDY Mdy Healthcare

RNS Number:9609C
Ransom(William) & Son PLC
30 August 2007


For Immediate Release                                            30 August 2007

                                     


                            WILLIAM RANSOM & SON PLC


  William Ransom & Son plc and MDY Healthcare plc establish direct-to-consumer
                            healthcare joint venture


The boards of William Ransom & Son plc ("Ransom") and MDY Healthcare plc ("MDY
Healthcare") are pleased to announce the establishment of a multi-channel retail
joint venture selling a range of high quality, natural healthcare products
direct to consumers via the internet, mail order and telesales.


The aim of the joint venture is to capitalise on the rapid growth of e-commerce
in the UK. The UK market for over-the-counter ("OTC") healthcare products is
estimated at #2.6 billion, with currently only approximately 5% being sold
direct to consumer ("DTC"). While the overall market is expected to continue to
show single digit growth, DTC growth has been significantly higher and this
trend is expected to continue. In the USA, DTC growth for OTC healthcare
products is forecast at 146% between 2005 and 2010 and the UK is expected to
follow a similar trend. (Sources: Euromonitor, Forrester Research, company
estimates).


The products will be primarily sourced and/or manufactured by Ransom, which will
also provide management support and fulfilment from its newly established
distribution centre in Bradford, UK. MDY Healthcare will provide up to #3
million in loan capital to finance the joint venture as well as management
support and project management services. It is anticipated that the joint
venture company will launch commercial activities in 2008.


The newly created joint venture company will initially be majority-owned by MDY
Healthcare. The board will include representatives of both Ransom and MDY
Healthcare. Ransom will have the option to acquire 100% ownership of the joint
venture company in accordance with an agreed timetable and valuation process.
MDY Healthcare will have the option to receive its consideration in such a
transaction in cash or a combination of newly-issued shares in Ransom and cash
subject to Ransom's shareholder approvals as required at the relevant time.


Commenting on the transaction, Tim Dye, Chairman and Chief Executive of Ransom
said:


"We are excited by the prospects that this joint venture offers in the
increasingly-important internet and mail order channels, where Ransom has not
historically focussed. It provides the springboard for accelerated growth in
sales of our products directly to consumers. Sales through existing retail
channels should also benefit from the joint venture's high profile direct
marketing activity."


Charles Spicer, CEO of MDY Healthcare added:


"MDY seeks to generate strong returns from investing in special situations in
the healthcare market. We believe that the direct-to-consumer market for OTC
healthcare products is a major opportunity. With Ransom's existing range of
natural consumer healthcare products and the combined experience of the two
management teams we are confident of building a fast-growing business."





For further information, please contact:

William Ransom & Son plc:
Tim Dye, Executive Chairman               +44 (0)1462 437615
Ian Miscampbell, Finance Director

Buchanan Communications:
Charles Ryland / James Strong / Ben       +44 (0)20 7466 5000
Romney

MDY Healthcare plc:                       +44 (0) 207 647 1800
Charles Spicer, CEO

Financial Dynamics:                       +44 (0) 207 831 3113
Ben Atwell / John Gilbert


Notes to Editors

About William Ransom & Son plc

Founded in 1846 and based in Hitchin, Hertfordshire, Ransom is the UK's oldest 
independent pharmaceutical company and one of the UK's leading natural healthcare 
companies.  Ransom is quoted on AIM (ticker symbol: RNSM).  The company is the 
market-leading supplier of glucosamine supplements following its acquisition of 
Health Perception in April 2004. The product range was further expanded in June 
2005 when Ransom acquired Optima Healthcare to become the UK's, and one of Europe's, 
leading suppliers of retailed aloe vera products.

For more information please see www.williamransom.com


About MDY Healthcare plc

MDY Healthcare plc is a sector specialised strategic investing company quoted on 
AIM (ticker symbol: MDY).  MDY Healthcare seeks to achieve superior returns for 
shareholders by investing globally in companies, both public and private, across 
the healthcare sector.  The directors, executives and senior advisors have significant 
operational and investment experience in the sector and therefore the ability to 
identify and review a wide range of potential investments.

For more information please see www.mdyhealthcare.com





                      This information is provided by RNS
            The company news service from the London Stock Exchange

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