Sale of Certain Assets

DawMed Systems PLC
30 January 2006


                                                                 30 JANUARY 2006


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


         SALE OF CERTAIN ASSETS OF 'SSD' PRODUCTS TO BMM WESTON LIMITED


The Board of Dawmed, the AIM listed medical devices company which designs,
manufactures, sells and services washer-disinfector-dryers ('WDD') used by NHS
Trust hospitals, private hospitals and clinics, is pleased to announce an
Agreement for the sale of certain intangible assets, viz. the relevant
intellectual property, know how and computer systems relating only to the
products in the Company's Sterile Services Departments ('SSD') range, to BMM
Weston Limited ('BMMW').

Under the terms of this Agreement Dawmed will continue to provide full testing,
servicing, supply of spare parts and training to all of its existing SSD
customers (including to those existing SSD customers to be supplied by BMMW in
the future) for the full life span of their machines and BMMW will manufacture
and sell the SSD range of WDDs henceforth.

As foreshadowed in the 2005 Interim and Year End Reports and Accounts, after
some twelve months monitoring and evaluating the market trends, it has become
clear that the NHS preference for the 'One Stop Shop' decontamination package
combining large washer-disinfector-dryers with large sterilisers in the SSDs
('Sterile Service Departments') of hospitals, which is dominated by
multinational companies, will continue. This trend, combined with the high
working capital requirements and low margins for SME companies like DawMed
offering separate products in that fiercely competitive SSD field, has convinced
the Board that shareholders' interests will be better served by the vigorous and
exclusive exploitation of the higher margin products in the Company's portfolio
which, together with its Support Services Operation, constitute the main drivers
of organic growth for the Company.

The Agreement, which provides for, inter alia, a consideration of £100,000 gross
against a book value of the relevant assets of circa. £24,000 and the purchase
of available stock at BMMW's discretion, is considered by both parties as a
logical and mutually beneficial step which enables a One Stop Shop service to be
created from the two previously separate product lines.

For DawMed, the beneficial effects of the Agreement will be the elimination of
net losses attributable to the SSD products, the release of working capital
previously required by the SSD products and the application of the proceeds from
the sale as further general working capital. This will enable the Company to
fully concentrate its efforts on the more rewarding and recently expanded range
of existing and new products for the Primary and Secondary Healthcare markets in
the UK, Europe and worldwide, viz:

•    'Clinic' bench top WDD - providing thermal disinfection for use in all NHS
     and private dentists, clinics and other primary healthcare practitioners
     and also targeting the European and worldwide markets;

•    'AERclens' bench top flexible nasendoscope washer-disinfector - a
     completely new product providing chemical disinfection for use in all NHS 
     and private Ear, Nose & Throat ('ENT') Departments, clinics and consulting 
     rooms and also targeting the European and worldwide markets;

•    New Wassenburg 'pass-through' flexible endoscope washer-disinfector ('WD') 
     and the continuation of the original Wassenburg space-saving flexible
     endoscope WD, both providing chemical disinfection for use in NHS and 
     private Endoscopy Departments et al in the UK; and

•    New Wassenburg flexible endoscope drying/storage cabinets - providing a
     daytime and overnight sterile environment for use in NHS and private 
     Endoscopy Departments et al in the UK.

Kevin Gilmore, Executive Chairman, commented: 'This Agreement is the highly
satisfactory culmination of a long and arduous examination of what is best for
the shareholders and stakeholders of the Company and the Board is confident of
the beneficial effects that it will confer upon the Company for the immediate
and long term foreseeable future'.

                                    --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


Note to Editors:

BMM Weston Limited is a private company whose diverse interests include the
manufacture and sale of SSD sterilisers and with whom DawMed has collaborated in
the past to offer a 'One Stop Shop' service. However, it was without the success
originally anticipated by both companies, mainly due to the inability to obtain
the cost savings that will now be achievable by BMM Weston as a result of the
Agreement, thus enabling it to compete with multinational manufacturers on a
level playing field.



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