Exhibit 99.1

For Immediate Release
 
Contacts:  William R. Gargiulo, Jr.    231.526.1244
                    Donna Felch                     312.595.9742



The Female Health Company Reports
Profit for both Fourth Quarter and Fiscal Year 2006


CHICAGO, Illinois (December 4, 2006) - The Female Health Company (OTC BB: FHCO) today reported financial results for the fourth quarter and full-year of fiscal 2006.

HIGHLIGHTS:
 
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4th Qtr. Revenue:  $4.4 million up 47% over 4th Qtr. of FY2005
   
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FY2006 revenue:  $14.8 million up 33% year over year
   
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4th Qtr. net income:  $52,105 up $189,001 from 4th Qtr. FY2005 loss of ($136,896)
   
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FY2006 net income:  $120,778 up $1,637,641 from FY2005 loss of ($1,516,863)
   
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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.


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About the Female Health Company.
 
The Female Health Company, based in Chicago, Illinois, manufactures and markets the FC Female Condom®, 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®, 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® 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 www.femalehealth.com and www.femalecondom.org. If you would like to be added to the Company's e-mail alert list, please send an e-mail to FHCInvestor@femalehealthcompany.com.
 

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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
  


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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
 

 
 
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