Re Legal Proceedings

DawMed Systems PLC
02 February 2007


For Immediate Release 2 February 2007


                               DAWMED SYSTEMS PLC

                                (the 'Company')



                    UPDATE RE LEGAL PROCEEDINGS AND ACCOUNTS





Dawmed Systems PLC's operating subsidiary company, Dawmed International Limited
('Dawmed International'), announced on 15 December 2006 that it had issued legal
proceedings against a trade debtor. Upon the advice of Counsel, Dawmed
International has decided to proceed directly to Trial as the most expeditious
route to resolve the action against the trade debtor to recover the outstanding
debt and to achieve the specific performance of the debtor's obligations under
the contract.


Since the AIM Rules require that the Annual Report and Accounts of the Company
shall be issued within six months of the Company's financial year end, the
Company will announce its Final Results for the year ended 30 September 2006 on
or about 21 March 2007 and post the Accounts by 31 March 2007 as required.


Dawmed International will make the appropriate provision for the amounts
outstanding and due under the contract from the trade debtor in the relevant
year in its Accounts for the year ended 30 September 2006. This will have the
effect of converting what would have been a Group pre-tax profit of circa.
£136,000, representing an increase of circa. 400% on the previous year and in
line with the Directors' expectations, to a pre-tax loss of circa. £71,000.

The Directors remain confident of the Company's prospects of success in the
legal action and in its prospects for the current financial year.


Enquiries:


Kevin M Gilmore                          Tel: [phone]

Executive Chairman                       Mob: [phone]


Beaumont Cornish Limited

Roland Cornish                           Tel: [phone]


Bishopsgate Communications Limited

Maxine Barnes

Dominic Barretto                         Tel: [phone]


For further information please visit Dawmed's web site at www.dawmed.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange