Interim Results

DawMed Systems PLC
23 June 2005


                                                                    23 JUNE 2005

                               DAWMED SYSTEMS PLC

                                INTERIM RESULTS
                   FOR THE SIX MONTH PERIOD TO 31 MARCH 2005


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
significantly improved results, in comparison with the same period last year,
for the six month period to 31 March 2005.

Key Points:

•      Turnover up 33.3%;
•      Total Gross Profit up 40.1%;
•      EBITDA profit of £128,100 (2004: loss of £166,800);
•      Operating profit of £15,500 before interest represents a beneficial
       turnaround of £216,000 (2004: loss of £200,500);
•      Net pre-tax loss of £5,600 represents a beneficial turnaround of £203,900
       (2004: loss of £209,500);
•      Clinic now on the preferred supplier lists of the NHS in both England and
       Scotland;
•      Two significant Hospital Trust contracts, with a combined value exceeding
       £1 million, awarded in January; and
•      Excellent overall growth exhibited by both the Wassenburg and the Support
       Services Divisions.

Commenting on today's announcement, Kevin Gilmore, Executive Chairman of DawMed,
said:

'I am pleased to announce, on behalf of the Board, that the overall financial
performance of your Company for the first six months of the year 2004-5 has met
the Directors' expectations in showing much improved results in comparison with
the same period last year.

Overall, I remain hopeful that the second half of the year will reflect the
results for the first half and produce a not unsatisfactory outcome at the year
end.'

                                    --ENDS--

Enquiries:

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

I am pleased to announce, on behalf of the Board, that the overall financial
performance of your Company for the first six months of the year 2004-5 has met
the Directors' expectations and showed significantly improved results in
comparison with the same period last year.

Financials
Overall, turnover of over £3.0 million was 33.3% ahead of the same period last
year, not least due to the forecasted excellent growth exhibited by both the
Wassenburg and the Support Services Divisions.

On a Divisional basis, comparison with the same period of the previous year
showed that sales of Wassenburg flexible endoscope washer-disinfectors ('WD'),
together with ancillary products, were 54.4% ahead and sales of Support Services
increased by 37.9%. Sales of the Clinic bench top washer-disinfector-dryer
('WDD') experienced a slow start to the half year, whilst sales of the
traditional large WDDs and related products for use in hospital Centralised
Sterile Service Departments ('CSSD') declined by 13.6%.

Encouragingly, like for like total gross profit for the half year produced a
40.1% increase, a rise which was assisted by the strong performances in the
Wassenburg and Support Services Divisions, where substantially improved margins
were achieved.

Total operating costs, before depreciation and financing charges, showed an
increase of only 5.5%, compared with the same period last year. The increase was
mostly in the Support Services Division, but was rewarded by a 42.2% increase in
the gross margin.
Earnings after finance charges, but before interest, taxation, depreciation and
amortisation ('EBITDA') amounted to £128,100. This achievement represents a
beneficial turnaround of £294,900 from the EBITDA loss of £166,800 for the first
six months of last year, not the least in consequence of the emphasis placed on
tight cost control by the Directors.

Operating profit before interest of £15,500 compares with an operating loss of
£200,500 for the corresponding period last year, representing a beneficial
turnaround of £216,000.

The net loss after interest but before tax for the half year was just £5,600
against a loss of £209,500 for the same period last year, a beneficial
turnaround of £203,900.

The balance of shareholders' funds at 31 March 2005 was £1.1 million, including
the proceeds of a new ordinary share issue to existing institutional investors
amounting to £262,000 after expenses in January 2005. The funds were raised to
provide ongoing support to the marketing and sales of the Clinic bench top WDD
and ancillary working capital. Capital expenditure was considerably reduced in
the period and net current assets showed some improvement over the position at
the end of corresponding period last year as well as a substantial increase over
that at the end of the previous financial year.

Products and Services
The comments I made in the Annual Report and Accounts 2004 under this heading
regarding the Wassenburg flexible endoscope WD Division and the Support Services
Division have been fully justified insofar as these two of our three key drivers
of growth and profitability have delivered excellent results in the first half
of this year.

The third key driver, namely the Clinic bench top WDD, has produced modest
results in the first half of the year with sales to both the private and NHS
Primary Care sectors and with improving penetration into the UK Primary Care
market. The Clinic is now on the preferred supplier lists of the NHS in both
England and Scotland and is also stimulating important interest in export
markets following a successful presence at each of the two major international
trade exhibitions, namely 'Medica' in Dusseldorf, and 'Arab Health' in Dubai, in
the first half of the year.
The traditional large WDDs Division, which supplies Hospital central sterile
service departments, continues to be closely monitored and I am happy to report
that the Company secured its largest ever contract for the supply and
installation of Beta WDDs to the Royal Victoria Hospital in Belfast. Delivery
commenced in March and the majority of the contract will be completed in the
current financial year.

Remainder of the Year and Future Prospects
The Support Services Division is growing from strength to strength and making
encouraging contributions in consequence of, inter alia, the previous
investments in personnel and infrastructure. This strong performance in the
first half of the year should continue through the second half and thus
hopefully ensure the ongoing substantial contribution that this Division makes
to the Company.

The Directors believe that the performance of the Wassenburg Division in the
second half of this financial year will be in line with current expectations.
New and improved products are being developed by the Wassenburg company in
conjunction with the Company with a view to consolidating the major UK market
share the Directors consider the product currently holds and improving that
share in the future.

As a consequence of a number of promotional and educational initiatives launched
by the Company in the first half of the year it is expected that the demand for
the Clinic bench top WDD will accelerate in the second half with improved sales
to UK private and NHS dentists coming to fruition and gaining considerable
momentum during the ensuing two years of transition to full NHS compliance
requirements by March 2007, as advised by the Purchasing and Supply Agency of
the NHS. Moreover, new and potentially exciting initiatives are being pursued
currently which the Directors believe will contribute to the Company's
performance in the next financial year.

Following the careful monitoring that I referred to in the Annual Report and
Accounts 2004, the traditional large WDDs Division is expected to show improved
sales turnover and improved margins in the second half arising from the
substantial orders awarded earlier in the year and the orders anticipated in the
second half.

To summarise, in the Support Services Division, the second half of this year is
expected to repeat the performance of the first half and the Wassenburg Division
is anticipated to be in line with current expectations. The benefits of the
contracts achieved by the traditional large WDD Division in the first half of
the year will be realised and should be augmented in the second half. In the
Clinic Division, volume shipments to the NHS Primary Care sector in the UK are
expected to commence and further penetration of the private dental healthcare
market is anticipated to result in improved sales in the second half of the
year, whilst new initiatives are being pursued which are potentially rewarding
and expected to make a contribution in the next financial year.

Overall, I remain hopeful that the second half of the year will reflect the
results for the first half and produce a not unsatisfactory result at the year
end.


Kevin M Gilmore
Executive Chairman




INDEPENDENT REVIEW REPORT BY BAKER TILLY TO DAWMED SYSTEMS PLC

Introduction
We have been instructed by the company to review the consolidated profit and
loss account for the six months to 31 March 2005, the group balance sheet at 31
March 2005 and the consolidated cashflow statement for the six months ended 31
March 2005 and we have read the other information contained in the interim
report and considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.

This report, including the conclusion, has been prepared for and only for the
company for the purpose of the Listing Rules of the Financial Services Authority
and for no other purpose. We do not, therefore in producing this report, accept
or assume responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where expressly agreed
by our prior consent in writing.

Directors' responsibilities
The interim statement, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors are
responsible for preparing the Interim Statement in accordance with the
Alternative Investment Market Rules which require that the accounting policies
and presentation applied to the interim figures should be consistent with those
that will be adopted in the company's annual accounts.

Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board as if that Bulletin applied. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and based thereon assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with Auditing Standards and therefore provides a lower
level of assurance than an audit. Accordingly we do not express an audit opinion
on the financial information.

Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 March 2005.

BAKER TILLY
Chartered Accountants
City Plaza
Temple Row
Birmingham
B2 5AF

23 June 2005



DAWMED SYSTEMS PLC
UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE
HALF YEAR ENDED 31 MARCH 2005
                                                         Unaudited   Unaudited
                                                          6 months    6 months
                                                                to          to
                                                          31 March    31 March
                                                              2005        2004
                                                             £'000       £'000

TURNOVER                                                   3,002.8     2,253.1

Cost of sales                                              1,864.2     1,440.4

Gross profit                                               1,138.6       812.7

Administrative expenses                                    1,123.1     1,013.2

OPERATING PROFIT/(LOSS)                                       15.5      (200.5)

Interest receivable                                            5.1         3.2

Interest payable                                              26.2        12.2

(LOSS) ON ORDINARY ACTIVITIES BEFORE TAXATION                 (5.6)     (209.5)

Taxation                                                         -           -

(LOSS) FOR THE HALF YEAR                                      (5.6)     (209.5)

BASIC (LOSS) PER SHARE                                       (0.03)p     (1.20)p

DILUTED (LOSS) PER SHARE                                     (0.03)p     (1.20)p




DAWMED SYSTEMS PLC                                       Unaudited   Unaudited
UNAUDITED BALANCE SHEET AS AT 31 MARCH 2005          31 March 2005    31 March
                                                             £'000        2004
                                                                         £'000

FIXED ASSETS                                                 631.5       673.2

CURRENT ASSETS
Stock                                                        682.7       548.0
Debtors                                                    1,367.7     1,544.1
Cash at bank and in hand                                     233.8       243.7

                                                           2,284.2     2,335.8

CREDITORS: Amounts falling due within one year             1,690.4     1,816.1

NET CURRENT ASSETS                                           593.8       519.7

TOTAL ASSETS LESS CURRENT LIABILITIES                      1,225.3     1,192.9

CREDITORS: Amounts falling due after more than one
year                                                         124.1       154.8

NET ASSETS                                                 1,101.2     1,038.1

Called up share capital                                    1,023.2       923.2
Share premium account                                      1,872.2     1,709.7
Merger reserve                                              (350.5)     (350.5)
Profit and loss account                                   (1,443.7)   (1,244.3)

SHAREHOLDERS' FUNDS                                        1,101.2     1,038.1





DAWMED SYSTEMS PLC                                       Unaudited   Unaudited
UNAUDITED CONSOLIDATED CASHFLOW STATEMENT FOR THE HALF    6 months    6 months
YEAR ENDED 31 MARCH 2005                                        to          to
                                                          31 March    31 March
                                                              2005        2004
                                                             £'000       £'000 
                                                                         
Net cash inflow/(outflow) from operating
activities                                                   364.6      (431.2)

Returns on investments and servicing of finance
Interest received                                              5.1         3.2
Interest paid                                                (26.2)      (12.2)

                                                             (21.1)       (9.0)

Capital expenditure and financial investment
Purchase of fixed assets                                     (25.1)      (54.5)

Financing
Issue of ordinary shares                                     262.5       513.4
Factoring and stock advances                                (663.9)       14.0
Finance leases                                               (10.4)       (4.7)

                                                            (411.8)      522.7

(Decrease)/increase in cash                                  (93.4)       28.0

Reconciliation of operating profit/(loss) to net cash
inflow/(outflow) from operating activities

Operating profit/(loss)                                       15.5      (200.5)
Depreciation and amortisation charges                        112.6        34.5
Movement in stocks                                          (168.7)      (73.5)
Movement in debtors                                           57.0      (367.0)
Movement in creditors                                        348.2       175.3

Net cash inflow/(outflow) from operating
activities                                                   364.6      (431.2)




NOTES TO THE ACCOUNTS:

1) The calculation of loss per share is based upon the loss of £5,625 (2004:
£209,500) and on 19,353,400 shares (2004: 17,519,030 shares), being the weighted
average number of shares in issue during the period.

Since the exercise price of the 2,236,676 share options is above the average
fair price for the 6 months to 31 March 2005, the diluted loss per share is
equivalent to the basic loss per share.

The diluted loss per share for the six months to 31 March 2004 is equivalent to
the basic loss per share since conversion of the share options would decrease
the net loss per share from continuing operations.

2) The accounting information presented does not constitute statutory accounts
and has not been audited.

3) Copies of the interim report will be posted to shareholders and will be
available for 30 days at the offices of Beaumont Cornish Limited, 63 Coleman
Street, London, EC2R 5BB.



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