Memorandum of Understanding

DawMed Systems PLC 17 March 2008 17 March 2008 DAWMED SYSTEMS PLC ('DawMed' or the 'Company') MEMORANDUM OF UNDERSTANDING The Board of DawMed, the AIM listed medical device company which designs, manufactures, sells and services healthcare decontamination equipment and associated consumables used by NHS Trust hospitals, private hospitals, clinics and Primary Care practitioners, is pleased to announce the signing of a Memorandum of Understanding between its operating subsidiary, DawMed International Limited and Schulke & Mayr GmbH, based in Germany, which is a major manufacturer and supplier of medical and industrial chemicals and gases throughout Northern Europe with particular interest in healthcare markets. Schulke & Mayr is the Germany based subsidiary of its long established ultimate parent company AIR Liquide, a world leader in medical and industrial gases and chemicals, based in France and having a corporate presence in 72 countries since its formation in 1902, The Memorandum of Understanding provides for DawMed International Limited ('DMI') to supply its 'AERclens Chemical' machine, a washer-disinfector ('WD') for flexible endoscopes, to Schulke & Mayr. Schulke & Mayr will resell, install and service the DawMed's AERclens WD decontamination equipment initially in the healthcare markets of Germany and Austria and will also sell all detergent and disinfectant chemicals directly to the end users of that equipment. This venture is the result of Dawmed's continuous implementation of its strategy to increase its endeavours in export markets, particularly in, but not limited to Europe and this Memorandum represents an important step forward for DawMed and a not unimportant first for Schulke & Mayr. Commenting, Executive Chairman, Kevin Gilmore, said: 'Today's announcement is a further meaningful positive for DawMed which may or may not represent the first stage of a potential distributorship agreement with Schulke & Mayr for sales of DawMed's AERclens decontamination equipment in Northern Europe.' Jean-Luc Charlet, Managing Director of Schulke & Mayr GmbH said 'We are extremely pleased with this agreement with Dawmed. This cooperation will help our customers to get a very efficient and very reliable solution to their daily problems in the field of instrument disinfection' Enquiries: Kevin M Gilmore Tel: 01608 682244 Executive Chairman Mob: 07785 396666 Beaumont Cornish Limited Roland Cornish Tel: 020 7628 3396 Bishopsgate Communications Limited Dominic Barretto Tel: 020 7562 3350 For further information about the Company's business please visit www.dawmed.com This information is provided by RNS The company news service from the London Stock Exchange

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