AGM Statement

DawMed Systems PLC
10 March 2006

                                                                   10 MARCH 2006


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

                                 AGM STATEMENT


At today's Annual General Meeting of DawMed, the medical devices company which
designs, manufactures, sells, distributes and services healthcare
decontamination equipment used by Secondary Care NHS Trust hospitals, private
hospitals and Primary Care practitioners and clinics, the Executive Chairman,
Kevin Gilmore, commented:


KEY POINTS:


   •Strategic realignment to benefit from higher sales volumes, margins and
    profitability;
   •Four new products added to portfolio - including the world-first
    automatic AERclens;
   •Beneficial disposal of SSD element for £100,000 - eliminating a loss
    making entity;
   •Lesser dependency now placed on NHS business;
   •Strong sales stream continuing from Wassenburg WD440 and Clinic;
   •Reinforced drive into the consumables market with detergent and
    disinfectant chemicals; and
   •Continued expansion of the already profitable Support Services
    Organisation.


'Your Company has beneficially refined its strategy and tactics since the AGM
last year and, although some changes were flagged in my Chairman's Statement in
the Report and Accounts for the year ending 30 September 2005, the extent of the
changes, planned for some time by your Board, is substantial. That Statement
referred, inter alia, to the continued monitoring of the SSD large
washer-disinfector-dryer (WDD) machines element and you will be aware of the
sale of the assets comprising the Intellectual Property Rights and Know How of
the SSD range of machines to BMM Weston Limited for £100,000 gross, announced in
January this year.


'The achievement of ceasing to sell these large SSD machines, whilst retaining
the profitable servicing thereof for all existing customers, has released the
high levels of working capital they required, eliminated the net losses
attributable to manufacturing them, provided additional funding to develop other
more rewarding opportunities, produced an extraordinary profit contribution and
was the final part of the new strategic and tactical plan.


'The Company has re-positioned itself into higher volume, higher margin, higher
profitability areas of business, which are far less dependent upon the NHS and
which offer greater potential for export, firstly into Europe and eventually
worldwide.


'The new strategy is supported by the largest range of products ever in the
Company's history, and includes no less than four new products to add to the
existing portfolio, of which one, the 'AERclens', represents the only one of its
type in the world so far as the Directors are aware.


'In addition to the space-saving original Wassenburg WD440 and the DawMed
'Clinic' bench top machines, which continue to sell well, the Company has
launched a new Wassenburg Model 300 Storage/Dryer Cabinet which has significant
technical and economic advantages for customers, a new Wassenburg WD440PT
'pass-through' version of the original, the all-new DawMed 'AERclens' automatic
system to decontaminate small flexible and rigid nasendoscopes for ENT (Ear,
Nose & Throat) consultants in hospitals, clinics, consulting rooms et al and,
finally, an exciting tactical move into the supply of detergent and disinfectant
chemicals generating additional immediate and long term high quality revenues.


'It is anticipated that a further beneficial consequence of the adoption of the
Company's new strategy will be the continued expansion of the already profitable
Support Services Organisation by providing those services to the increasing
volume of our equipment in the market place.


'The overall effect of the realigned business with its lower level of dependence
upon the NHS is the ability to offer a wider range of decontamination equipment
with customer appeal on economic as well as quality grounds, a reinforced drive
into the consumables market with detergent and disinfectant chemicals, an
expectation of higher margins and net profits from both equipment and
consumables, a consequential anticipated increase in the turnover and
profitability of the already successful Support Services Organisation, an
opportunity to lower costs and the likelihood of exporting firstly to Europe and
thereafter, worldwide.'


All resolutions proposed at the Annual General Meeting were duly passed.



                                    --ENDS--


Enquiries:

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

Beaumont Cornish Limited                                      Tel: [phone]
Roland Cornish

Bishopsgate Communications Limited                            Tel: [phone]
Dominic Barretto
Scott Robertson


For further information please visit DawMed's website at www.dawmed.com



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