Final Results

DawMed Systems PLC
12 December 2003


Embargoed until: 07.30, Friday 12 December 2003


                               DAWMED SYSTEMS PLC

                              PRELIMINARY RESULTS

DawMed Systems plc ('DawMed' or 'the Company'), 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 2003.


Key Points (For the year ended 30 September 2003)

   •Turnover increased by 22% from £3.7 million to £4.5 million
   •40% increase in sales of Wassenburg Flexible Washer Disinfectors
   •28% increase in sales from the service organisation
   •Gross profit increased by 10% from £1.2 million to £1.4 million
   •Net loss of £294,000, due to the contractual delay in the delivery of the
    prototype machines of the new 'Clinic' Bench Top Washer Disinfector Dryer
    for the primary care market
   •Shareholders' funds increased to £734,000 compared with £630,000 at the
    half year
   •Production of the 'Clinic' to commence in the first week of January 2004.
      Sales enquiries at an encouraging level


Kevin Gilmore, Executive Chairman, commented 'Overall, the performance of the
Group's operations for the year to 30 September 2003 has been satisfactory.
With the exception of spare parts, turnover increased in all business areas,
with particularly strong demand for the Wassenburg Flexible Endoscope Washer
Disinfector, although the previously reported contractual delay in the delivery
of the prototype machines of our new 'Clinic' Bench Top Washer Disinfector Dryer
for the primary care market was extended and resulted in there being no
contribution to turnover by the 'Clinic' in the second half, as had been
previously anticipated.

'Looking to the immediate and medium term future, the Board anticipates that the
continuing growth of the existing business will be enhanced by the sales launch
of the 'Clinic'.   Actual production of the 'Clinic' will commence in the first
week of January 2004 and sales enquiries are at an encouraging level. Your
Company is thus well placed to take advantage of this new market opportunity in
the UK and Europe as well as increase its penetration in existing markets '

For further information please visit www.dawmed.com or 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

Overall, the performance of the Group's operations for the year to 30 September
2003 has been satisfactory.  With the exception of spare parts, turnover
increased in all business areas, with particularly strong demand for the
Wassenburg Flexible Endoscope Washer Disinfector, although the previously
reported contractual delay in the delivery of the prototype machines of our new
'Clinic' Bench Top Washer Disinfector Dryer for the primary care market was
extended and resulted in there being no contribution to turnover by the 'Clinic'
in the second half, as had been previously anticipated.


RESULTS

Your Company achieved growth in turnover of 22% during the year from £3.7
million to £4.5 million, producing a 10% increase in gross profit to £1.367
million which, after the planned increase of 35% in overheads, resulted in a net
loss of £294,000, pre and post tax, compared to a similar loss of £212,000 in
the first half of the year.


Shareholders' funds increased to £734,000 compared with £630,000 at the half
year. The balance sheet was strengthened by a pre-arranged £200,000 share issue
in April which, together with the new ordinary share issue at the time of the
Company's admission to the Alternative Investment Market (AIM) in October 2002,
gave rise to £250,000 additional equity over the year.


PRODUCTS AND SERVICES

All key areas of the business, with the exception of spare parts, recorded
improved sales during the year.  The service organisation grew sales by 28%
compared with the previous year whilst sales of the Wassenburg machines
increased by 40%.  The cost of importing these from Holland was however
adversely affected by the strengthening of the Euro against Sterling.  This,
together with the continued pricing pressure the Company has faced in its
traditional business with the Sterile Service Departments (SSDs) of acute
hospitals, and a fall off in the value of the spare parts business, resulted in
a downward pressure on margins.


With regard to the 'Clinic', the Board has been disappointed by the contractual
delay in the delivery of the prototype machines, the contract for which was
outsourced to a well known design and development company.  The consequential
delay in the sales launch of the 'Clinic' has been particularly frustrating in
the light of the increased sales performance of the other products and services
which, together with the budgeted 'Clinic' sales revenue planned for the second
half, would have led to the anticipated significant net profit for the year.
Nevertheless, the rate of loss was substantially reduced in the second half of
the year, during which the overhead costs were reduced by 17% compared with the
first half of the year.


OVERHEADS

During the year, we continued to invest substantially in our business, leading
to a 35% increase in overheads.  However, as stated, the expenditure on the
service organisation, which has more than doubled its number of personnel since
the beginning of the period, has contributed to a sharp rise in turnover from
this area of the business.  In addition, we have invested in project management
to support the growth in Wassenburg business and as stated, in setting up the
infrastructure essential to the marketing and sales of the 'Clinic' as well as
on the fitting out of the factory unit necessary to accommodate its assembly.


OUTLOOK

Looking to the immediate and medium term future, the Board anticipates that the
continuing growth of the existing business will be enhanced by the sales launch
of the 'Clinic'.  'Productionisation' of the prototype models has been completed
and it has been well received at a number of trade shows in the UK and Europe.
Actual production of machines will commence in the first week of January 2004
and sales enquiries are at an encouraging level.  Modest initial sales are being
planned for the first quarter of the new calendar year, rising in volume to
planned levels by the end of the financial year. Recruitment of dedicated
marketing, sales and service personnel has already been implemented as referred
to.  Every effort is being made to ensure that this product delivers its full
growth potential in the UK and Europe and makes a significant contribution to
the future sales and profits of the Company.


With regard to the existing business, sales growth is anticipated in the fast
expanding market for our Wassenburg Flexible Endoscope Washer Disinfector in
addition to the promising enquiries we have received for our products in the
traditional SSD business.  The Directors also believe that the continued
expansion of the service organisation business, the development of the recently
established training organisation business and the continued growth in the
consumables supply business, all integrated into a support services department,
will make an increasing contribution to your Company's future prosperity.


Subsequent to the year end and as announced today, DawMed has secured the
agreement of new investors to subscribe for new ordinary shares in the Company,
in total amounting to £540,000, for the prime purposes of further expanding the
marketing and sales of the 'Clinic' and the support services department, as well
as to provide additional working capital.


Kevin M Gilmore

Chairman



CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 30 September 2003


                                          Note             2003           2002
                                                              £              £

TURNOVER                                              4,525,231      3,695,835
                                                     ----------    -----------

Cost of sales                                        (3,157,862)    (2,452,686)

GROSS PROFIT                                          1,367,369      1,243,149
                                                     ----------    -----------

Administrative expenses                              (1,641,523)    (1,223,366)

OPERATING (LOSS)/PROFIT                                (274,154)        19,783

Interest receivable and similar income                    1,799          7,407
                                                     ----------    -----------

Interest payable and similar charges                    (20,544)       (18,276)

(LOSS)/PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION                                        (292,899)         8,914
                                                     ----------    -----------

Taxation                                                   (197)             -
                                                     ==========    ===========

(LOSS)/PROFIT FOR THE YEAR                             (293,096)         8,914
                                                     ==========    ===========

(LOSS)/PROFIT PER SHARE                        1          (1.88)p         0.06p
                                                     ==========    ===========

DILUTED EARNINGS PER SHARE                     1          (1.76)p         0.06p
                                                     ==========    ===========


The operating loss for the period all arises from continuing operations.


No separate Statement of Total Recognised Gains and Losses has been presented as
all such gains and losses have been dealt with in the Profit and Loss Account.


GROUP BALANCE SHEET
As at 30 September 2003

                                         GROUP                    COMPANY
                                  2003          2002         2003         2002
                                     £             £            £            £
FIXED ASSETS
Intangible assets              524,232       209,299            -            -
Tangible assets                 89,590       103,546            -            -
                             ---------     ---------    ---------    ---------
Investments                          -             -      467,360      467,360
                             ---------     ---------    ---------    ---------

                               613,822       312,845      467,360      467,360
                             ---------     ---------    ---------    ---------
CURRENT ASSETS
Stocks                         474,494       434,034            -            -
Debtors                      1,177,141     1,068,207    1,178,204      924,945
                             ---------     ---------    ---------    ---------
Cash at bank and in hand       175,527       373,643      164,370      282,964

                             1,827,162     1,875,884    1,342,574    1,207,909
                             ---------     ---------    ---------    ---------
CREDITORS: Amounts
falling due within one      (1,627,765)   (1,325,003)      (7,715)     (43,286)
year
                             ---------     ---------    ---------    ---------
NET CURRENT ASSETS             199,397       550,881    1,334,859    1,164,623
                             ---------     ---------    ---------    ---------
TOTAL ASSETS LESS
CURRENT LIABILITIES            813,219       863,726    1,802,219    1,631,983
                             ---------     ---------    ---------    ---------
CREDITORS:  Amounts
falling due after more
than one year                  (79,122)       (8,953)           -            -
                             =========     =========    =========    =========
NET ASSETS                     734,097       854,773    1,802,219    1,631,983

Called up share capital        803,165       753,165      803,165      753,165
Share premium account        1,316,312     1,193,892      996,152      873,732
Merger reserve                (350,520)     (350,520)           -            -
                             ---------     ---------    ---------    ---------
Profit and loss account     (1,034,860)     (741,764)       2,902        5,086
                             =========     =========    =========    =========
                               
SHAREHOLDERS' FUNDS            734,097       854,773    1,802,219    1,631,983
                             =========     =========    =========    =========


Notes


1.         The calculation of profit per share is based upon the loss after
taxation of £293,096 (2002 profit: £8,914) and on 15,630,415 shares (2002:
14,269,900 shares) being the weighted average number of ordinary shares in issue
during the year.

The diluted (loss)/profit per share shows the effect on the calculation as if
the 980,000 share options granted had been converted to shares.

2.   The Consolidated Profit and Loss Account and Balance Sheet information for
the years ended 30 September 2003 and 30 September 2002 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 2002
have been delivered to the Registrar of Companies.  The Statutory Accounts for
the year ended 30 September 2003 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.


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