Distributorship Agreement

DawMed Systems PLC
23 August 2007




For Immediate Release                                             23 August 2007

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

        DISTRIBUTORSHIP AGREEMENT FOR SALES AND SERVICE OF NEW BENCH TOP
                            WASHER-DISINFECTOR-DRYER


The Board of DawMed, the AIM listed medical device company which designs,
manufactures, sells and services healthcare decontamination equipment used by
NHS Trust hospitals, private hospitals, clinics and Primary Care practitioners,
is pleased to announce the signing of an Exclusive Distributorship Agreement
('Agreement') between its operating subsidiary company, DawMed International
Limited ('DMI') and Prestige Medical Ltd for Sales and Service of the new
'Prestige Medical WDD' bench top washer-disinfector-dryer to be manufactured by
DMI.

Prestige Medical Ltd is a wholly owned subsidiary company of BI Group PLC and is
an established major supplier of bench top sterilisers to the dentistry,
podiatry, veterinary, cosmetic and laboratory markets, with a current installed
base of more than 100,000 units, annual sales of over 8,000 units and fast
growing export achievements. For Prestige Medical Ltd, this Agreement enables it
to offer its customers a more complete decontamination system utilising its new
bench top washer-disinfector-dryer together with its well established bench top
sterilisers.

The Agreement provides for the sale by DMI of a substantial minimum annual
number of the new 'Prestige Medical WDD' bench top washer-disinfector-dryers to
Prestige Medical Ltd who will sell the machines into the private dentistry,
podiatry and laboratory markets in the UK, Europe, North America and ROW
regions. This Agreement, which is of considerable importance, size and worth to
DawMed, also represents the Company's second notable export achievement for this
type of medical device.

Commenting, Executive Chairman, Kevin Gilmore, said: 'Today's news is an
important positive for DawMed following this year's negatives, and represents
the second of two such agreements for a Distributor's new bench top
washer-disinfector-dryer to date. Other products in the Company's range are
currently the subject of Board discussions with a number of parties regarding
potentially positive and notable outcomes, which it hopes to announce to
shareholders in due course.'



Enquiries:

Kevin M Gilmore                                               Tel: [phone]
Executive Chairman                                            Mob: [phone]

Beaumont Cornish Limited
Roland Cornish                                                Tel: [phone]

Bishopsgate Communications Limited
Dominic Barretto                                              Tel: [phone]



For further information please visit Dawmed's web site at www.dawmed.com




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