Final Results

DawMed Systems PLC
20 December 2002

Strictly Embargoed Until: 07.00, 20 December 2002

DawMed Systems plc

Preliminary Results

DawMed Systems plc (DawMed), the medical devices company which designs,
manufactures, sells and services washer disinfectors used by NHS Trust
hospitals, private hospitals and clinics, today announces results for the year
ended 30 September 2002.

Highlights

•        Most successful trading year to date
•        A turnaround of £254,000 from last year's loss of £245,000 to this
         year's profit of £9,000
•        61% increase in turnover to £3.7m (2001: £2.3m)
•        Equity share capital raised, £650,000 net of all issue costs
•        Net assets increased from £196,000 to £855,000.  Debt reduced by some
         £335,000 to leave the Balance Sheet un-geared
•        Bench Top washer disinfector dryer well received at demonstration model
         level

Kevin Gilmore, Executive Chairman, commented 'It has been an important year in
the development of DawMed and I am pleased to report that the Company has
experienced its most successful trading year to date.  Whilst it is too early to
comment meaningfully on the current year, I can report that the current order
book is healthy across the whole product range including further orders through
the NHS Purchasing and Supply Agency for DawMed washer disinfectors for
Secondary Care Hospitals.

'In addition, DawMed is busy finalising arrangements for the introduction to the
Primary Care market of its new Bench Top washer disinfector dryer, which is
anticipated to show a positive impact in the second half of the year.'



For further information please contact:


Kevin Gilmore, Chairman       Roland Cornish                      Rosie Brown/ Claire Melly
DawMed Systems plc            Beaumont Cornish Limited            Tavistock Communications
Tel: [phone]             Tel: [phone]                  Tel: [phone]





                              Chairman's Statement

I am pleased to report that your Company has experienced its most successful
trading year to date, achieving a profit on ordinary activities of £9,000 for
the year ended 30 September 2002, compared with a loss of £245,000 for the
previous year.

Turnover at £3.7 million showed a significant increase of £1.4 million over the
£2.3 million for the previous year.  This 61% increase in turnover was achieved
with all sections of the business showing considerable growth over the previous
year and was reflected in a 75% growth in gross profit and a gross margin
improvement from 30.9% to 33.6%.  Particularly pleasing was the sales
performance of the core business washer disinfectors, justifying the previous
investment in the enhancement of the product range.  Sales of the Wassenburg
flexible endoscope washer disinfectors again delivered an impressive
performance, consolidating the previous year's growth.

Overheads increased from the previous year by 32%, following investment in
personnel in sales and service functions, together with the associated costs of
acquiring additional factory premises to provide facilities for future
expansion.

The Balance Sheet showed significant strengthening during the year with net
assets improved from £196,000 to £855,000. A further £650,000, net of all issue
costs, was raised in share issues.  Part of the proceeds was used to reduce debt
by some £335,000 during the year, leaving the Balance Sheet un-geared at the
year end.  No dividend is proposed.

Considerable progress has been made in the design and development of the new
Bench Top washer disinfector dryer and it is intended to launch the product into
the Primary Care market in the current financial year.  The product has been
well received at the demonstration model level.  We have been advised that
specific attention is now being given by the NHS to the decontamination of
surgical instruments used in invasive procedures by Primary Care practitioners.

Recent press coverage of the announcement in the European Molecular Biology
Organisation journal made by Professor John Collinge, a leading British expert
on CJD (the human form of BSE) at the Institute of Neurology at University
College London, that humans may be capable of acting as infective carriers of
both variant and sporadic CJD, has emphasised that the already 'heightened
awareness' of the Government, the NHS and its advisors concerning the risks of
cross infection due, inter alia, to inadequate decontamination equipment and
facilities in both Secondary and Primary Care establishments, continues
unabated. Professor Stan Prusiner, of the University of California, who won the
Nobel Prize in 1997 for his research on BSE which discovered its cause, now
generally accepted as being the mutated prion protein, was reported as saying
that 'no one should be exposed to prions in any way'.

Subsequent to the year end, the Company transferred from trading on OFEX to
admission to AIM, with effect from 14 October 2002, at which time an additional
£50,000 investment was raised from two new investors and an irrevocable
commitment for a further £200,000 investment in April 2003 was arranged.
Expenses of the issue were £91,000.

It has been an important year in the development of your Company and I would
like to thank all of the staff for their continued contribution to our success.
Whilst it is too early to comment meaningfully on the current year, I can report
that the current order book is healthy across the whole product range including
further orders through the NHS Purchasing and Supply Agency for DawMed washer
disinfectors for Secondary Care Hospitals.  In addition, your Company is busy
finalising arrangements for the introduction to the Primary Care market of its
new Bench Top washer disinfector dryer, which is anticipated to show a positive
impact in the second half of the year.

As ever, our performance will reflect our ability to meet the many challenges
and opportunities of the year ahead.

Kevin M. Gilmore
Executive Chairman

20 December 2002


CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 30 September 2002


                                                                     Note             2002            2001
                                                                                         £               £

TURNOVER                                                                         3,695,835       2,300,309

Cost of sales                                                                   (2,452,686)     (1,590,404)


Gross profit                                                                     1,243,149         709,905

Administrative expenses                                                         (1,223,366)       (926,612)


OPERATING PROFIT/(LOSS)                                                             19,783        (216,707)

Interest receivable and similar income                                               7,407               -

Interest payable and similar charges                                               (18,276)        (28,251)


PROFIT/(LOSS) ON ORDINARY ACTIVITIES
  BEFORE TAXATION                                                                    8,914        (244,958)

Taxation                                                                                 -               -

PROFIT/(LOSS) FOR THE YEAR                                               1           8,914        (244,958)

PROFIT/(LOSS) PER SHARE                                                  1            0.06p          (2.79p)

DILUTED PROFIT/(LOSS) PER SHARE                                                       0.06p          (2.57p)



CONSOLIDATED BALANCE SHEET
for the year ended 30 September 2002


                                                                2002          2001
                                                                   £             £
FIXED ASSETS
Intangible assets                                            209,299             -
Tangible assets                                              103,546        97,444
Investments                                                        -             -

                                                             312,845        97,444

CURRENT ASSETS
Stocks                                                       434,034       346,054
Debtors                                                    1,068,207       487,655
Cash at bank and in hand                                     373,643         1,699

                                                           1,875,884       835,408

CREDITORS: Amounts falling due within
  one year                                                (1,325,003)     (734,266)

NET CURRENT ASSETS                                           550,881       101,142

TOTAL ASSETS LESS CURRENT LIABILITIES                        863,726       198,586

CREDITORS:  Amounts falling due after
  more than one year                                          (8,953)       (2,512)

NET ASSETS                                                   854,773       196,074

CAPITAL AND RESERVES (EQUITY)
Called up share capital                                      753,165       609,314
Share premium account                                      1,193,892       687,958
Merger reserve                                              (350,520)     (350,520)
Profit and loss account                                     (741,764)     (750,678)

SHAREHOLDERS' FUNDS                                          854,773       196,074



Notes

1.      The calculation of earnings per share is based upon the profit after
taxation of £8,914 (2001 loss: £244,958) and on 14,269,900 shares (2000:
8,777,064 shares) being the weighted average number of ordinary shares in issue
during the year.

      The diluted profit/(loss) per share shows the affect on the calculation as
if the share options granted in each period had been converted to shares.

2.   The Consolidated Profit and Loss Account and Balance Sheet information for
the years ended 30 September 2002 and 30 September 2001 shown above has been
extracted from the Statutory Accounts for those years on which the auditors gave
an unqualified opinion.  Statutory Accounts for the year ended 30 September 2001
have been delivered to the Registrar of Companies.  The Statutory Accounts for
the year ended 30 September 2002 are due to be delivered to the Registrar
following conclusion of the forthcoming Annual General Meeting.

A copy of this statement is available from the offices of Beaumont Cornish Ltd,
63 Coleman Street, London, EC2R 5BB.


                      This information is provided by RNS
            The company news service from the London Stock Exchange