Follow these steps in order to install the MD5 export plugin for blender:
Download the plugin from
here
Open Blender (The plugin has been tested on Blender 2.76)
Goto “File → User Preferences”
Goto “Add-ons” tab and choose “Install from file…”
Browse for the plugin zip file and press “Install from File…”
Search for the plugin you have installed “Import-Export: Export idTech4 (.md5)” and enable it via the checkbox
Press on “Save User Settings” and close the window
You will now see the option “idTech 4 MD5 (.md5mesh .md5anim) from the “File → Export” menu