AGM Statement

DawMed Systems PLC 10 March 2006 10 MARCH 2006 DAWMED SYSTEMS PLC ('Dawmed' or 'the Company') AGM STATEMENT At today's Annual General Meeting of DawMed, the medical devices company which designs, manufactures, sells, distributes and services healthcare decontamination equipment used by Secondary Care NHS Trust hospitals, private hospitals and Primary Care practitioners and clinics, the Executive Chairman, Kevin Gilmore, commented: KEY POINTS: •Strategic realignment to benefit from higher sales volumes, margins and profitability; •Four new products added to portfolio - including the world-first automatic AERclens; •Beneficial disposal of SSD element for £100,000 - eliminating a loss making entity; •Lesser dependency now placed on NHS business; •Strong sales stream continuing from Wassenburg WD440 and Clinic; •Reinforced drive into the consumables market with detergent and disinfectant chemicals; and •Continued expansion of the already profitable Support Services Organisation. 'Your Company has beneficially refined its strategy and tactics since the AGM last year and, although some changes were flagged in my Chairman's Statement in the Report and Accounts for the year ending 30 September 2005, the extent of the changes, planned for some time by your Board, is substantial. That Statement referred, inter alia, to the continued monitoring of the SSD large washer-disinfector-dryer (WDD) machines element and you will be aware of the sale of the assets comprising the Intellectual Property Rights and Know How of the SSD range of machines to BMM Weston Limited for £100,000 gross, announced in January this year. 'The achievement of ceasing to sell these large SSD machines, whilst retaining the profitable servicing thereof for all existing customers, has released the high levels of working capital they required, eliminated the net losses attributable to manufacturing them, provided additional funding to develop other more rewarding opportunities, produced an extraordinary profit contribution and was the final part of the new strategic and tactical plan. 'The Company has re-positioned itself into higher volume, higher margin, higher profitability areas of business, which are far less dependent upon the NHS and which offer greater potential for export, firstly into Europe and eventually worldwide. 'The new strategy is supported by the largest range of products ever in the Company's history, and includes no less than four new products to add to the existing portfolio, of which one, the 'AERclens', represents the only one of its type in the world so far as the Directors are aware. 'In addition to the space-saving original Wassenburg WD440 and the DawMed 'Clinic' bench top machines, which continue to sell well, the Company has launched a new Wassenburg Model 300 Storage/Dryer Cabinet which has significant technical and economic advantages for customers, a new Wassenburg WD440PT 'pass-through' version of the original, the all-new DawMed 'AERclens' automatic system to decontaminate small flexible and rigid nasendoscopes for ENT (Ear, Nose & Throat) consultants in hospitals, clinics, consulting rooms et al and, finally, an exciting tactical move into the supply of detergent and disinfectant chemicals generating additional immediate and long term high quality revenues. 'It is anticipated that a further beneficial consequence of the adoption of the Company's new strategy will be the continued expansion of the already profitable Support Services Organisation by providing those services to the increasing volume of our equipment in the market place. 'The overall effect of the realigned business with its lower level of dependence upon the NHS is the ability to offer a wider range of decontamination equipment with customer appeal on economic as well as quality grounds, a reinforced drive into the consumables market with detergent and disinfectant chemicals, an expectation of higher margins and net profits from both equipment and consumables, a consequential anticipated increase in the turnover and profitability of the already successful Support Services Organisation, an opportunity to lower costs and the likelihood of exporting firstly to Europe and thereafter, worldwide.' All resolutions proposed at the Annual General Meeting were duly passed. --ENDS-- Enquiries: DawMed Systems plc Tel: 01789 740 010 Kevin Gilmore, Executive Chairman Beaumont Cornish Limited Tel: 020 7628 3396 Roland Cornish Bishopsgate Communications Limited Tel: 020 7430 1600 Dominic Barretto Scott Robertson For further information please visit DawMed's website at www.dawmed.com This information is provided by RNS The company news service from the London Stock Exchange

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