Settlement of Litigation

DawMed Systems PLC
25 June 2007


For immediate release                                             25 June 2007



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

                        SETTLEMENT OF LEGAL PROCEEDINGS


The Board of Dawmed Systems plc ('Dawmed' or 'the Company'), the AIM listed
medical device company which designs, manufactures, sells and services
healthcare decontamination equipment used by NHS Trust hospitals, private
hospitals, clinics and Primary Care practitioners, is pleased to announce that a
full, final and satisfactory settlement has been reached with the trade debtor
against whom Dawmed International Limited, the Company's operating subsidiary
company, instigated legal proceedings in December 2006, and also that a
satisfactory ongoing relationship has been established with the said trade
debtor.


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 about Dawmed International Limited please visit the web
site at www.dawmed.com




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