Final Results

DawMed Systems PLC
21 December 2004


FOR IMMEDIATE RELEASE
21 DECEMBER 2004

                              DAWMED SYSTEMS PLC

            PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2004

The Board of 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 2004.

Key Points

   •Turnover up by 4.2% to £4.71m (2003: £4.53m)

   •Net loss of £403,000

   •Sales for Wassenburg flexible endoscope Washer Disinfector products
    ('WD') up 44.6%

   •Turnover up 38.5% in Support Services Division

   •31.4% increase in gross profit to £1.79m

   •Shareholders' funds at £844,000

   •Clinic in full production, with more than 15 sold since July

Commenting on today's announcement, Kevin Gilmore, Chairman of DawMed, said:
'I am pleased to report that every Division of your Company is indicating
significantly improved levels of business compared with 2004, which I anticipate
will lead to a return to profitability this year. Your Company continues to
focus on the current and future growth areas, namely Wassenburg flexible
endoscope WD products, the Support Services Division and the Clinic bench top
WDD. These three important areas are seen by the Board as the key drivers to the
future growth and profitability of the business, on which it intends to
concentrate the Company's resources.

'The focus is now on achieving a good return on the past investments, aided by
only modest increases in overheads, which will be strictly related to increases
in turnover, due to the adequacy of the now well established organisation and
infrastructure.'

Enquiries:

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

Beaumont Cornish Limited                                    Tel: [phone]
Roland Cornish

Bishopsgate Communications Limited                         Tel:  [phone]
Maxine Barnes, Dominic Barretto

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

Chairman's Statement :

On behalf of the Board, I am pleased to announce that, at the year ended 30
September 2004, your Company's performance was in line with the Directors'
expectations, showing a modest increase in overall sales performance over the
previous year.

During the period, overall turnover increased by 4.2% to £4.71m (2003: £4.53m).
Particularly pleasing was the strong growth achieved by the Wassenburg flexible
endoscope Washer Disinfector products ('WD'), with sales increasing by 44.6%,
like-for-like and the turnover in our Support Services Division which showed an
impressive 38.5% increase, compared with the previous year.

The resultant overall effect was a 31.4% increase in gross profit to £1.79m, and
an eight point increase in the gross margin percentage. Sales of the Company's
traditional large Washer Disinfector Dryer ('WDD') products were down some 55% -
a trend continuing on from the first-half of the year and foreshadowed in my
June Interim Report.

As highlighted at the time of the Interim Report, there were a large number of
third-party design delays that postponed the full launch of the new Clinic bench
top WDD until June 2004. These delays meant that sales of the Clinic to the
Primary Care market were minimal. However, I can now report that the Clinic is
in full production, and more than 15 have been sold since July. Initial feedback
has been positive and sales are in-line with revised management expectations
following the delays. As sales volumes grow, the Board is confident of the
success of this product for the year to 30 September 2005 and beyond.

According to reliable information received, I am pleased to report that NHS
spending on WDDs in the Primary Care Sector is scheduled for strong growth, as
the UK Government and the EU look to extend Secondary Healthcare decontamination
standards to the Primary Healthcare Sector. Automated WDDs offer certainty of
disinfection against the uncertainty and unlikelihood of the manual alternative
and Directors believe that it has the most functionally rich and
standards-compliant offering with the Clinic bench top WDD.

The resultant net loss of £403,000, pre and post-tax for the year, showed a
marginal decrease in the second half of the year and compares with a £293,000
loss in the previous year. Overhead spend of £2.15m showed a 31.2% increase over
the prior year, of which more than half was in respect of the infrastructure set
up exclusively for the Clinic.

At the year-end, shareholders' funds were £844,000, an increase of £110,000 over
the previous period, resulting from the new shares issued to raise £540,000
before expenses in December 2003.

Products and Services

Your Company continues to focus on the current and future growth areas, namely
Wassenburg flexible endoscope WD products, the Support Services Division and the
Clinic bench top WDD. These three important areas are seen by the Board as the
key drivers to the future growth and profitability of the business, on which it
intends to concentrate the Company's resources.

The Company is working closely with Wassenburg to further develop the UK market
for existing products and also for the introduction of exciting additions to the
product range to be made during the current financial year.

Whilst the overhead spend on the Support Services Division has increased, it was
at a much reduced rate and was an investment justified by the 100% increase in
the gross margin amount from this business Division over that achieved in the
previous year.

The Clinic bench top WDD was a joint major factor contributing to the Company's
year-end losses. With negligible sales and the resultant lack of gross margin
until the last quarter of the year, together with a full year's related
infrastructure costs incurred, the delay in availability of the product resulted
in a substantial shortfall in sales and consequentially in profitability. In the
opinion of the Directors, the product is a world market leader in terms of
design, functionality, application and compliance with the world's highest
standards and will form a key element in the Company's progress for many years.

As a consequence of the serious decline in the sales performance of the
traditional large WDD products business, the gross margin amount was half of
that achieved in the previous year and was also a joint major factor
contributing to the Company's year end losses. The current overhead spend and
the level of working capital required in this Division is being carefully
monitored.

Outlook and Future Prospects

The Directors are continually evaluating the constituent parts of the Company's
business and are pleased to report that every Division of the Company is
indicating significantly improved levels of business compared with 2004, which
the Directors anticipate will lead to a return to profitability at year end
September 2005.

Prospects for the traditional large WDD products Division in the current year to
30 September 2005 are encouraging, with the Company well placed to significantly
improve upon its 2004 performance. Nevertheless, your Board will continue to
explore alternative initiatives in this Division to improve its medium term
growth potential.

Demand for the Wassenburg flexible endoscope WD products continues to grow
satisfactorily and, with new additions to the range, it is expected that this
Division will continue to provide further growth potential in machine sales and
continuous consumables revenue this year as well as retain, in the Director's
opinion, its market leader position.

The Directors believe that the most important Division, with by far the greatest
future growth prospects for the current year and the long term future, is the
Clinic bench top WDD. The introduction during 2005 of the new compliance
requirements in the UK Primary Care market to match those already established in
the Secondary Care market is anticipated to generate further growth in UK direct
and indirect sales to dentists, general practitioners and other Primary Care
practitioners. The Company is also awaiting confirmation of its preferred
supplier status for Primary Care bench top WDDs in England, in addition to that
recently awarded to the Company by Scottish Healthcare Supplies for the Primary
Care market in Scotland. Furthermore, discussions are currently taking place
with a number of multi-national companies concerning the exciting potential of
substantial sales worldwide.

The Support Services Division should continue to benefit from the substantial
year-on-year increases in the size of the installed base of the Company's total
range of decontamination equipment, including the additional support services
associated with high potential sales of the Clinic in the UK, Europe and
Worldwide, and also from the ever more stringent compliance with standards
requirements being implemented by UK Trust Hospitals in respect of new and
existing WDD equipment. In addition, the newly initiated training function
within this Division is proving to be successful, particularly with regard to
the Wassenburg flexible endoscope WD products.

Although the Company's policy is to continuously improve its products and
services, it is not considered to be necessary to embark upon any costly new
product initiatives in the foreseeable future such as have been necessary over
recent years to arrive at our current exciting position. The focus is now on
achieving a good return on the past investments, aided by only modest increases
in overheads, which will be strictly related to increases in turnover, due to
the adequacy of the now well established organisation and infrastructure.

Kevin M Gilmore
Executive Chairman



Dawmed Systems plc
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 30 September 2004
                                                          2004            2003
                                                             £               £

TURNOVER                                             4,713,357       4,525,231

Cost of sales                                       (2,917,212)     (3,157,862)
                                                    -----------     -----------

Gross profit                                         1,796,145       1,367,369

Administrative expenses                             (2,153,695)     (1,641,523)
                                                    -----------     -----------

OPERATING LOSS                                        (357,550)       (274,154)

Interest receivable and similar income                   8,701           1,799

Interest payable and similar charges                   (54,315)        (20,544)
                                                       --------        --------

LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION           (403,164)       (292,899)
                                                      

Taxation                                                                  (197)
                                                                          -----

LOSS FOR THE YEAR                                     (403,164)       (293,096)
                                                     -----------      ---------

LOSS PER SHARE                                           (2.24)p         (1.88)p
                                                         --------        -------

DILUTED LOSS PER SHARE                                   (2.24)p         (1.88)p
                                                        ----------      --------



Dawmed Systems plc                                        2004           2003
CONSOLIDATED BALANCE SHEET                                   £              £
for the year ended 30 September 2004

FIXED ASSETS
Intangible assets                                      641,966        524,232
Tangible assets                                         66,424         89,590
                                                        -------       -------

                                                       708,390        613,822
                                                       --------      --------

CURRENT ASSETS
Stocks                                                 514,036        474,494
Debtors                                              1,355,383      1,177,141
Cash at bank and in hand                               326,628        175,527
                                                       ---------      -------

                                                     2,196,047      1,827,162

CREDITORS: Amounts falling due within one year      (1,950,258)    (1,627,765)
                                                    -----------    -----------

NET CURRENT ASSETS                                     245,789        199,397
                                                       -------       --------

TOTAL ASSETS LESS CURRENT LIABILITIES                  954,179        813,219
                                                       -------        -------

CREDITORS: Amounts falling due after more than
one year                                              (109,846)       (79,122)
                                                     -----------      --------

NET ASSETS                                             844,333        734,097
                                                       --------       -------

Called up share capital                                923,165        803,165
Share premium account                                1,709,712      1,316,312
Merger reserve                                        (350,520)      (350,520)
Profit and loss account                             (1,438,024)    (1,034,860)
                                                    -------------  -----------
SHAREHOLDERS' FUNDS                                    844,333        734,097
                                                      ----------     --------



Dawmed Systems plc
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30 September 2004
                                                            2004         2003
                                                               £            £

Cash flow from operating activities                     (380,064)    (365,788)

Returns on investments and servicing of finance          (45,614)     (18,745)

Taxation                                                       -         (197)

Capital expenditure and financial investment            (183,288)    (344,766)
                                                        ----------   ---------

CASHFLOW BEFORE FINANCING ACTIVITIES                    (608,966)    (729,496)

Financing                                                760,067      531,380

MOVEMENT IN CASH IN THE PERIOD                           151,101     (198,116)
                                                         -------     ---------

Notes

1.          The calculation of loss per share is based upon the loss after
taxation of £403,164 (2003 loss: £293,096) and on 17,991,160 shares (2003:
15,630,415 shares) being the weighted average number of ordinary shares in
issue during the year.

Since the exercise price of the 2,236,676 share options is above the average
fair price for the year, the diluted loss per share is equivalent to the basic
loss per share.

The prior year diluted loss per share is equivalent to the basic loss per share
since conversion of the 1,436,676 share options would decrease the net loss per
share from continuing operations.

2. The Consolidated Profit and Loss Account and Balance Sheet information for
the years ended 30 September 2004 and 30 September 2003 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 2003
have been delivered to the Registrar of Companies. The Statutory Accounts for
the year ended 30 September 2004 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 Limited, Georgian House, 63 Coleman Street, London, EC2R 5BB





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