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Kay presents a rambling pitch that concentrates on sales but fails to say exactly what Physicool is.

When Theo Paphitis picks her up on this, she demonstrates the use of her reuseable cooling compression bandage and spray on James Caan's arm and wrist.

Former tennis coach Peter Jones is concerned the product is not unique but Kay replies that as far as she is aware hers is the only such product that is reuseable.

Theo Paphitis wants to know if Kay has a patent on her spray and she confirms she has.

He goes on to ask whether she has any corporate interest in the product and she confirms that two companies are interested in exploring co-branding opportunities.

He finally asks Kay about her own background and discovers that she has bred horses for eventing competitions all her life.

Deborah Meaden wants to know about the financials and Kay says while she made a small £3,000 loss in 2007 her turnover in the current financial year is close to £60,000.

Deborah then wants to know if she has any big deals with distributors and she confirms that a company in India that generates two thirds of her current income is placing monthy orders that are worth between £15,000 and £20,000. The female Dragon is clearly impressed.

Duncan Bannatyne wants to know more about her market. She replies that when she began she expected the sports injury sector would be her most lucrative but has found since that it is increasingly the medical market instead.

Kay also reveals that she has been trading with this same product in the equine market for 5/6 years and this year that market is worth about £80,000.

Peter Jones is concerned that she is selling the same product to two separate markets via two separate companies but Kay explains that the equine market is niche and very different in marketing terms to the one she hopes to reach via Physicool.

James Caan is disappointed as a would-be investor that Kay is potentially locking him out of a profitable side of her business where it is selling exactly the same product as the one he is being invited to invest in. For James this doesn't sound like a fair business relationship and for those reasons he is out.

Deborah however defends Kay, saying she is quite right to brand and market her product separately as humans may not be happy using a product that can also be used on horses.

In a canny move she goes on to offer Kay the £100,000 she is after but only if she is prepared to combine the two businesses. Deborah requests a 30% stake in the combined business.

Theo Paphitis, aware of Deborah's love and knowledge of horses, asks himself whether he would want to compete with his fellow Dragon. He concludes he would not, and so declares himself out.

Peter Jones quickly follows suit, suggesting to Kay she has a "shockingly good" offer on the table.

Duncan asks Kay whether she would be happy to work with Deborah. She candidly replies that she would and so on that basis he also declares himself out.

Kay agrees to the deal with Deborah.

The deal in the Den:

Deborah Meaden: £100,000 for a 30% equity in Physicool Ltd.