Memorandum of Understanding

DawMed Systems PLC
17 March 2008


                                                                   17 March 2008


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


                          MEMORANDUM OF UNDERSTANDING


The Board of DawMed, the AIM listed medical device company which designs,
manufactures, sells and services healthcare decontamination equipment and
associated consumables used by NHS Trust hospitals, private hospitals, clinics
and Primary Care practitioners, is pleased to announce the signing of a
Memorandum of Understanding between its operating subsidiary, DawMed
International Limited and Schulke & Mayr GmbH, based in Germany, which is a
major manufacturer and supplier of medical and industrial chemicals and gases
throughout Northern Europe with particular interest in healthcare markets.

Schulke & Mayr is the Germany based subsidiary of its long established ultimate
parent company AIR Liquide, a world leader in medical and industrial gases and
chemicals, based in France and having a corporate presence in 72 countries since
its formation in 1902,

The Memorandum of Understanding provides for DawMed International Limited
('DMI') to supply its 'AERclens Chemical' machine, a washer-disinfector ('WD')
for flexible endoscopes, to Schulke & Mayr.

Schulke & Mayr will resell, install and service the DawMed's AERclens WD
decontamination equipment initially in the healthcare markets of Germany and
Austria and will also sell all detergent and disinfectant chemicals directly to
the end users of that equipment.

This venture is the result of Dawmed's continuous implementation of its strategy
to increase its endeavours in export markets, particularly in, but not limited
to Europe and this Memorandum represents an important step forward for DawMed
and a not unimportant first for Schulke & Mayr.

Commenting, Executive Chairman, Kevin Gilmore, said: 'Today's announcement is a
further meaningful positive for DawMed which may or may not represent the first
stage of a potential distributorship agreement with Schulke & Mayr for sales of
DawMed's AERclens decontamination equipment in Northern Europe.'

Jean-Luc Charlet, Managing Director of Schulke & Mayr GmbH said 'We are
extremely pleased with this agreement with Dawmed. This cooperation will help
our customers to get a very efficient and very reliable solution to their daily
problems in the field of instrument disinfection'

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 about the Company's business please visit www.dawmed.com



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