'Clinic' Marketing Update

DawMed Systems PLC
28 February 2005



FOR IMMEDIATE RELEASE                                          28 FEBRUARY 2005

                               DAWMED SYSTEMS PLC
                          ('DawMed' or 'the Company')

                           'CLINIC' MARKETING UPDATE

 'CLINIC' BENCH TOP WASHER-DISINFECTOR-DRYER INTRODUCED TO US$74 BILLION MIDDLE
                             EAST HEALTHCARE MARKET


According to published results by the UK Department of Health relating to
Secondary Healthcare hospital decontamination services for surgical instruments
in the NHS, more effective decontamination was identified as a key component to
achieve higher quality surgical care, and a programme to bring such services up
to the required standard was completed last year. According to the National
Audit Office, it has been estimated that some 5,000 people currently die each
year from hospital-acquired infections.

The Board of DawMed, the medical devices company which designs, manufactures,
sells and services washer-disinfector-dryers ('WDD') used by NHS Trust
hospitals, private hospitals and clinics, reports the noticeably high level of
interest in its unique and innovative 'Clinic' - a key driver in the Company's
long term growth strategy - which was exhibited by the Company last week at the
Arab Health Exhibition, the Middle East's largest healthcare exhibition, in
Dubai.

The Clinic WDD is designed for use in the Primary Healthcare sector (i.e.
doctors, dentists, endodontists, clinicians, et al) as well as for certain
departments of Secondary Healthcare hospitals. DawMed has successfully
incorporated all the technology of its large WDD equipment by miniaturisation
into a machine size comparable with bench top sterilisers, which proliferate
throughout the Primary Healthcare sector worldwide.

The Clinic fits perfectly into the existing surgical instrument decontamination
process by replacing manual and/or ultrasonic cleaning procedures in favour of a
fully automatic procedure which is also fully compliant with UK guidelines and
imminent European standards. It features a 'Watchdog' microprocessor control
system that will detect and alarm under fault conditions.

Now, in its 30th year, the Arab Health Exhibition is the largest healthcare
event in the Middle East and one of the most important in the world today. With
the Middle East healthcare market valued at US$74 billion annually, the event
has been attracting more and more exhibitors and visitors each year. In 2004, a
total of 1,422 exhibitors from 50 countries, including 25 national country
pavilions displayed their healthcare products and services to over 30,000
visitors.  The visitors included over 4,400 dealers and distributors.

Whilst there are estimated to be around 40,000 bench top sterilisers in use in
Primary Healthcare in the UK, the vast majority of these are currently not
accompanied by a WDD, but should be. Instead, technicians and nurses typically
wash and dry surgical instruments manually before placing them in sterilisers,
thereby risking cross-infection of themselves as well as patients and also
compromising the desired effect of sterilisation. DawMed's management believes
that the Clinic has a number of unique features and functional advantages over
competitors' products. These include:

• Double door option: An important facility that is unique to the Clinic
enables the 'pass through' principle to be operated. As a result the unit can be
installed through a partition or wall, thus creating a physical barrier between
the clean and the dirty sides of the partition or between the clean and dirty
rooms - a technique always employed by hospital Sterile Service Departments or
Central Decontamination Units to avoid confusion as to which instruments are
clean and which are dirty. The double door option also constitutes a fail-safe
feature whereby if one door is open, the other is locked;

• Accurate dosing and performance monitoring: An important facility that
ensures that the precise amount of detergent is used with each wash - if the
right quantity is not used (for example if the container is damaged), then the
operator will be warned that the process has deliberately failed on the
fail-safe principle. The system will also monitor and deliberately fail-safe if
important problems occur, for example incorrect length of process, incorrect
temperature attainment and incorrect pump pressure;

• Forced air drying: An important facility that is unique to the Clinic and
which enables immediate transfer of the surgical instruments into the
steriliser. It is not possible to sterilise a surgical instrument if it is wet
and the use of towels for drying is highly likely to re-contaminate it; and

• Standards compliance: DawMed's management believes the Clinic is the only
bench top WDD in the world which is fully compliant with the current UK
guidelines (HTM 2030) and imminent European/UK standards (pr/EN 15883 Parts 1
and 2).

DawMed has invested heavily in the bespoke design and development of its Clinic
product range, and has already received two SMART awards for product
development; the Company intends to continue to focus on marketing the Clinic to
further its application to affinity markets.

Commenting on the Clinic and its potential market, Kevin Gilmore, Executive
Chairman, said:

'The project for the development of Clinic started four years ago, after
management predicted that NHS would extend the UK and imminent European
standards of decontamination of surgical instruments, which already applied to
Secondary Healthcare hospitals, to the Primary Healthcare sector. The NHS have
now done so, effective from February 2005.

'The Clinic is small, fast and easy to use. Its size is comparable with bench
top sterilisers and it is currently being supplied to the Primary Healthcare
market and other emerging niche markets.

'The wider market for the Clinic, which is now open to exploitation by DawMed,
includes the whole of the European Common Market (larger than the USA at some
350 million people) as well as the USA, the growing economies of Asia, India and
China and, eventually, the rest of the world.'

Commenting on the Exhibition and the likely sources of cross infection, John
Crispin, Managing Director, said:

'Exhibiting the Clinic at the Arab Health Exhibition was a logical step in our
marketing programme. DawMed's directors believe that the Clinic is the most
advanced bench top washer-disinfector-dryer in today's worldwide market place,
and we look to the future of the product with confidence.

'Although there is no reliable information available as to the number, severity
or consequences of cross infections arising from surgical procedures carried out
in Primary Healthcare, there can be no doubt that the greatest number, and the
greatest increase in numbers of such procedures, take place in Primary
Healthcare. It may therefore be reasonably argued that a major risk of cross
infections through surgical procedures originates in Primary Healthcare. '
                                   
                                    ---ends---

Enquiries:

DawMed Systems plc                                             Tel: [phone]    
Kevin Gilmore, Executive Chairman

Beaumont Cornish limited                                      Tel: [phone]
Roland Cornish

Bishopsgate Communications Limited                            Tel: [phone]
Maxine Barnes, Dominic Barretto

For further information about DawMed please visit our website at www.dawmed.com





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