Final Results

DawMed Systems PLC
05 December 2005



For immediate release                                            5 December 2005

                              DAWMED SYSTEMS PLC

                                 FINAL RESULTS

                      FOR THE YEAR ENDED 30 SEPTEMBER 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
Final Results for the year ended 30 September 2005.


Key Points:

   •Turnover up 30.7% to £6.16m (2004: £4.71m);


   •Gross profit up 41.5% to £2.54m (2004: £1.79m);


   •EBITDA at £264,800 up by £519,00 (2004: loss of £254,300);


   •Operating profit a t£75,600 up by £433,200 (2004: loss of £357,600);


   •Net profit after interest and taxation at £27,200 up by£430,300 (2004:
    net loss of £403,100);


   •Support Services division increases sales by 52.4%;


   •Shareholders' funds of £1,134,100 - an improvement of £289,700 over the
    previous year-end;


   •Successful development and introduction of the 'AERclens' Automatic
    Endoscope Reprocessor; and


   •Strong working capital position. No net debt at the year-end.


Commenting on today's announcement, Kevin Gilmore, Executive Chairman of DawMed,
said: 'Today's results have surpassed the Board's expectations indicated in my
Interim Statement at the half year stage and fully reflect the cautious optimism
expressed in my Statement in the Annual Report and Accounts for the previous
year ended 30 September 2004. As the figures confirm, all sectors of the
Company's business showed improvement over the previous year, further growth is
anticipated in most of those sectors and, with the launch of three new products
for shipment in this 2005/2006 financial year, one of which is aimed at what the
Directors believe is a large and currently untapped market, I have a measured
optimism for this year and for the longer term future of the Company.'





                                    --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 / Nick Rome

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


                              Chairman's Statement


I have pleasure in announcing that your Company has produced considerably
improved results for the year ended 30th September 2005, which have surpassed
the Board's expectations indicated in my Interim Statement at the half year
stage and fully reflect the cautious optimism expressed in my Statement in the
Annual Report and Accounts for the previous year ended 30 September 2004.

Financials

Turnover increased to £6.16m, an improvement of some 30.7% over the previous
year's £4.71m. Significant growth was achieved in Support Services which
increased sales by 52.4% over last year. Sales of large WDDs
('Washer-Disinfector-Dryer') machines to SSDs ('Sterile Services Department')
almost doubled compared with the previous year largely as a result of the
substantial contract for the supply and installation of Beta
washer-disinfector-dryers (WDD's) to the Royal Victoria Hospital in Belfast. The
supply on that contract is now complete. The overall sales of Wassenburg
products were in line with last year and sales of the Clinic bench-top WDD,
which were substantially improved over the previous year and increasing in the
second half of the year, have begun to achieve volume expectations in the NHS
Primary Healthcare sector and also in the private dental market. Sales of spare
parts continued to remain buoyant with performance 16.1% ahead of last year.

The overall sales improvement generated a gross profit of £2.54m, an increase of
41.5% over the previous year's £1.79m and the gross profit percentage increased
by three percentage points. The main contributory factors giving rise to this
increase were the excellent results produced by Support Services where the gross
profits almost doubled compared with last year, the much improved volumes in the
large SSD business resulting in usefully increased gross profits and the
continuing good performance of the Wassenburg product group aided by its healthy
chemical sales.

Total overhead spend in the year of £2.47m was 14.5% up on the previous year's
total of £2.15m. Operating overheads, before central costs, depreciation and
amortisation, were 12.9% up on last year whilst central costs were reduced by
21.3%. Depreciation and amortisation charges increased by 96.1% as a direct
consequence of a full year's amortisation charges on the Clinic R & D
expenditure. The only significant increases in operating overheads occurred in
Support Services and Clinic manufacturing, both as a result of increased
business levels.

Earnings after finance charges, but before interest, taxation, depreciation and
amortisation ('EBITDA') were £264,800 compared with a first half result of
£128,100, thus showing a slight increase in the second half. This performance is
a substantial improvement over last year, which showed an EBITDA loss of
£254,300, and represents an impressive turnaround of £519,100.

Similarly, the operating profit before interest of £75,600 compares with an
operating loss of £357,600 for the corresponding period last year, a substantial
turnaround of £433,200.

The net profit after interest and taxation was £27,200 for the year, against a
net loss of £403,100 in the previous year, a notable turnaround of £430,300.

The Balance Sheet showed shareholders' funds of £1,134,100 as at 30th September
2005, an improvement of £289,700 over the previous year-end. This resulted
partially from the return to profitability in the year and partially from the
proceeds of the share issue in January 2005.

The working capital position also improved in the year with net current assets
improving by £403,400 and net cash flow by £274,400. The company had no net debt
at the year-end.

Products and Services

As the figures above confirm, all sectors of the Company's business showed
improvement over the previous year, but none more so than the Support Services
organisation. The Board's decision to allocate significant financial and human
resources to this sector has been rewarded with excellent results and
significant growth over the last three years. Further resources are being
provided in the current year to ensure that this activity maintains its record
as one of the growth sectors of the Company and that enhanced profitability
continues to be achieved.

The sales performance of the Wassenburg products was in line with the previous
year and was augmented by the associated chemical sales and related Support
Services.

The sales performance of the SSD machines provided a welcome respite from the
effects of the previous year's performance, but still remained a somewhat
irregular and competitive market.

It now seems clear that the Company was ahead of its time in identifying the
need and opportunity for equipment for the decontamination of surgical
instruments in Primary Healthcare to introduce the prevention of cross infection
from one patient to another during minor surgical procedures. The Company's
'Clinic' bench top WDD broke new ground in its design and development from
scratch of a miniature version of its large hospital type WDD, incorporating all
of its technical features including full compliance with current and imminent
standards. Following the slow start to Clinic sales that perhaps all pioneers
suffer, I am now pleased to report that the Company has been successful in
significantly increasing the English and Welsh NHS Primary Healthcare sector and
private dental sector awareness with consequential improved sales.

Outlook and Future Prospects

Whilst the supply of large WDD machines to SSD's (Sterile Services Departments)
of NHS and Private Secondary Healthcare hospitals was favourably affected in the
year by some satisfactory contracts, this element is still undergoing the
careful monitoring, referred to in my previous Annual Report Statement, of the
high working capital requirement, the cyclical nature of demand and diminishing
margins in a fiercely competitive field.

The Wassenburg opportunities are expected to continue to expand, particularly
with the launch of two new products for shipment during the 2005/2006 financial
year, viz. the state-of-the-art flexible endoscope drying and storage cabinets
and the 'pass-through' flexible endoscope WD. The new pass-through machine is
expected to be delivered into the UK market during the current 2005/2006 year
and promises to be an exciting addition to the existing product range to
complement the original against-the-wall space saving machine. Similarly, the
entirely new product range of Wassenburg drying/storage cabinets offers
technically advanced products for use in all Private and NHS hospital
departments using flexible endoscopes, irrespective of the type of WD in use,
provides economic advantages to such departments and complements the extended
range of Wassenburg flexible endoscope WD's. I am pleased to announce their
introduction into the UK market and look forward with enthusiasm to these new
products opening up new sales opportunities for the Company in the second half
of this year.

Following the Clinic's success in the English NHS Primary Healthcare sector and
in the private dental sector in England and Wales, further success is
anticipated as a result of the Clinic's inclusion on the Scottish Health Service
('SHS') preferred supplier list and a groundswell of increased awareness and
interest from the important private dental sector across the UK and the Republic
of Ireland. In Scotland, new decontamination guidelines for the predominantly
SHS dentists have been issued, underpinned by substantial funding to assist the
dentists to purchase compliant decontamination equipment. The Company is taking
positive action to ensure that it captures a meaningful share of this market,
ably supported by its Scottish distributor. The Board firmly believes that the
combination of the Department of Health's directive for all Primary Healthcare
practitioners to be equipped with fully compliant decontamination equipment by
the end of March 2007 and the increased awareness of the need for automatic
washing, disinfecting and drying instruments in the Private, NHS and SHS Primary
Healthcare sector, will augur well for the Company's Clinic sales performance in
the current year.

Support Services goes from strength to strength and the near doubling of the
gross profit contribution from this organisation speaks for itself. It is
anticipated that further growth will be achieved in the current year, including
expansion of the Training function and the possible establishment of additional
service functions during the current year.

Notwithstanding my concluding comments a year ago, and following the Company's
successful entry into, and subsequent capture of a predominant share of the WD
market for the decontamination of large flexible endoscopes, the Company has
used its not inconsiderable expertise to design, develop and 'productionise' a
new bench top Washer-Disinfector for an entirely new, and in the Directors'
opinion untapped market, viz. the decontamination of small flexible fibre optic
laryngoscopes (also known as nasendoscopes) which do not have suction or
instrument channels and are used as diagnostic tools in ENT ('Ear, Nose and
Throat') departments of NHS and Private Secondary Healthcare hospitals and
private Consulting Rooms for the examination of nasal cavities, pharynx and
larynx. This AER ('Automatic Endoscope Reprocessor') machine is aimed at
departments and consulting rooms that currently use only manual,
labour-intensive methods of washing and disinfection. The Company's innovative
'AERclens' WD machine will offer a fully compliant automatic, efficient,
controlled and cost-effective solution to users that hitherto have only been
able to use the inadequate and non-validated manual methods. The Company plans
to commence sales of the 'AERclens' machine and its related accessories and
chemicals in the second half of the current financial year, following its recent
successful launch at both domestic and international exhibitions. The Board
intends to pursue vigorously this truly exciting opportunity and provide the
resources to maximise the potential in the UK and Europe, perhaps leading to
worldwide potential in due course.

No shareholder will be surprised to hear that a great deal of hard work and
dedication has gone into the achievement of these improved results and the
laying of foundations for hopefully future benefits. On behalf of the Board I am
pleased to thank and congratulate all our employees for their vital
contributions.

I commend this Report and Accounts to all shareholders and trust that the
Directors' commitment to its contents and their measured optimism for the
current year and for the longer term future of your Company will be acknowledged
and shared respectively by existing and new shareholders.

Enquiries:

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

Beamont Cornish Limited
Roland Cornish, Executive Chairman                            Tel: [phone]

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



Dawmed Systems plc                                        2005            2004
CONSOLIDATED PROFIT AND LOSS ACCOUNT                         £               £
for the year ended 30 September 2005

TURNOVER                                             6,158,223       4,713,357

Cost of sales                                       (3,616,602)     (2,917,212)

Gross profit                                         2,541,621       1,796,145

Administrative expenses                             (2,466,066)     (2,153,695)

OPERATING PROFIT/(LOSS)                                 75,555        (357,550)

Interest receivable and similar income                  10,292           8,701

Interest payable and similar charges                   (58,619)        (54,315)

PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE
TAXATION                                                27,228        (403,164)

Taxation                                                     -               -

PROFIT/(LOSS) FOR THE YEAR                              27,228        (403,164)

EARNINGS/(LOSS) PER SHARE                                 0.14p          (2.24)p

DILUTED EARNINGS/(LOSS) PER SHARE                         0.14p          (2.24)p


Dawmed Systems plc                                          2005           2004
CONSOLIDATED BALANCE SHEET                                     £              £
30 September 2005
FIXED ASSETS
Intangible assets                                        485,501        641,966
Tangible assets                                           65,907         66,424

                                                         551,408        708,390

CURRENT ASSETS
Stocks                                                   506,164        514,036
Debtors                                                1,387,702      1,355,383
Cash at bank and in hand                                 601,071        326,628

                                                       2,494,937      2,196,047
CREDITORS: Amounts falling due within one year        (1,845,703)    (1,950,258)

NET CURRENT ASSETS                                       649,234        245,789

TOTAL ASSETS LESS CURRENT LIABILITIES                  1,200,642        954,179
                                              
CREDITORS: Amounts falling due after more than
one year                                                 (66,554)      (109,846)

NET ASSETS                                             1,134,088        844,333


Called up share capital                                1,023,165        923,165
Share premium account                                  1,872,239      1,709,712
Merger reserve                                          (350,520)      (350,520)
Profit and loss account                               (1,410,796)    (1,438,024)

SHAREHOLDERS' FUNDS                                    1,134,088        844,333


Dawmed Systems plc                                             2005       2004
CONSOLIDATED CASHFLOW STATEMENT
for the year ended 30 September 2005
                                                                  £          £

Net cash inflow/(outflow) from operating activities         396,157   (380,064)

Returns on investments and servicing of finance
Interest received                                            10,292      8,701
Interest paid                                               (58,619)   (54,315)

                                                            (48,327)   (45,614)

Capital expenditure and financial investment
Purchase of fixed assets                                    (69,413)  (183,288)
Receipts from sale of fixed assets                              600          -

                                                            (68,813)  (183,288)

Financing
Issue of ordinary shares                                    262,527    513,400
Factoring and stock advances                               (254,929)   219,787
Finance leases                                              (12,172)    26,880

                                                             (4,574)   760,067

Increase in cash                                            274,443    151,101

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

Operating profit/(loss)                                      75,555   (357,550)
Depreciation and amortisation charges                       225,795    123,720
Movement in stocks                                            7,872    (39,542)
Movement in debtors                                         (32,319)  (178,242)
Movement in creditors                                       119,254     71,550

Net cash inflow/(outflow) from operating activities         396,157   (380,064)

Notes

1.  The calculation of earnings per share is based upon the
profit after taxation of £27,228 (2004 loss: £403,164) and on 19,909,867 shares
(2004: 17,991,160 shares) being the weighted average number of ordinary shares
in issue during the year.

Since the exercise price of the 2,236,676 (2004: 2,236,676) share options is
above the average fair price for the year and the prior year, the diluted
earnings per share is equivalent to the basic earnings per share.

2.  The Consolidated Profit and Loss Account and Balance Sheet
information for the years ended 30 September 2005 and 30 September 2004 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 2004 have been delivered to the Registrar of Companies. The
Statutory Accounts for the year ended 30 September 2005 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, 5th Floor, 10-12 Copthall Avenue, London, EC21 7DE









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