Mediwatch is a small company destined to become a much bigger fish by the time this year is out. Mediwatch are already a market leader in urological medical diagnostics equipement and are currently exporting their products throughout the UK, Canada, Europe, India and Japan. That doesn't leave much of the globe left for them to capture - until you remember the good ol' US and China. These are the two massive markets which are destined to be added to MDW's export client portfolio by the end of 2005.

Website: www.mediwatch.com

The company is currently heavily undervalued. This is probably because Mediwatch's speciality is not a very glamourous business to be in as their equipment is used extensively to diagnose prostate cancer in men and other nasty urological conditions affecting both men and women. However, don't let that put you off investing in these guys. This is big business and is growing at an exponential rate as more and more people globally become health-aware as they get older. Mediwatch normally supply their products through to global markets via distribution agreements. They already have the best of distribution partners in the well known US medical distributor CR Bard who supply Canada and Europe and GE Medical who supply Japan. The UK business is handled by Mediwatch's own dedicated sales team. US FDA approval was gained for MDW's products at the start of last year, however a whole year of US legal wrangling meant that they were unable to seek a suitable partner for the crucial distribution agreement until the start of this year. This distribution agreement is expected by the board to have a "significant effect" on the share price so they are reluctant to give any clues as to when it will be signed, sealed and delivered. The general consensus is that this US distribution agreement will be announced in July/August. In China and Hong Kong, MDW have done things the other way round. They have set up distribution agreements with major Asian medical equipment distributors and have stock already out there waiting to sell into the markets - all they are waiting for is SDA approval (which is a "rubber stamp") from the Chinese authorities - this can take anything up to 12 months to come through and MDW applied during Autumn 2004 - so even more good news coming soon this year. Epidemiological data from British Association of Urology conference last year: On average 30-45% of all men between the age of 50 and 70 have at least one PSA test per year in the US / Italy / Australia. If that's not enough to convince you to invest a few hard earned coppers in MDW, they are also developing a PSA stick test product (PSAWatch) which is revolutionary and causing some excitement in medical circles. This product can also be adapted (at very low cost) for a whole spectrum of medical disciplines from Cardiology to Veterinary Practice! This product is likely to be released in the next few weeks. Philip Stimpson the CEO has said that this product is going to be their "gold mine" - I'm sure it will prove to be ours too.

(34) Abdel-Fattah M, Barrington JW. The accuracy of Bardscan: a new tool for the measurement of the bladder volume. Journal of Obstetrics & Gynaecology 2005; 25(2):186-188.

The above is just a minor revenue generator when compared to the Multiscan,PSAwatch and Bioscan systems.

With the Multiscan already a done deal with MDT regarding distribution and with the addition of the other two systems which are soon to be approved,they must be drooling at future sales prospects.

Then we have the Medtronic (MDT) Urodynamics deal,which MDW have announced but for whatever reason MDT have not as yet but when they do that is MDW well and truly on the world map.
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Mediwatch PLC
04 April 2006


Supply and Asset Purchase Agreement

Mediwatch plc (AIM: MDW) announced today that the company has entered into an
exclusive period on negotiation with Medtronic, Inc. for the supply of certain
urology diagnostics products and potential purchase of the assets of Medtronic's
urology diagnostic business. The discussions are ongoing and it cannot be
guaranteed that the parties will enter into definitive agreements for product
supply and or the purchase of the business assets.
***********************************************************************************************

Mediwatch PLC
10 May 2006


MEDIWATCH PLC


ENTERS SUPPLY AGREEMENT FOR URODYNAMIC EQUIPMENT



Mediwatch Plc (AIM: MDW), the high-tech medical diagnostic equipment
manufacturer and supplier, announces that it has entered into a manufacturing
and supply agreement with Medtronic Inc. Under the agreement Mediwatch will
manufacture and supply an established range of urodynamic equipment that
provides a complete urological assessment for patients. These products
compliment the existing Mediwatch range of diagnostic equipment.

Medtronic Inc. is one of the world's leading medical technology companies.

Philip Stimpson, CEO Mediwatch commented, 'The supply and manufacturing
agreement with Medtronic takes us into an established global market with a
proven range of products. With increasing life expectancy and an ageing
population, prostate and
urological conditions are among the fastest growing health problems encountered
by doctors today. Mediwatch, as well as having an excellent reputation for
developing cutting edge urological equipment, will now become a major
manufacturer in its own right.'
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And from MDW's website:


Urodynamics
Mediwatch has begun manufacturing and started delivery of urodynamic equipment to Medtronic, as agreed in the Manufacturing and Supply Agreement announced 10th May 2006. The first order of 20 G3 units has been dispatched.

Maybe a bit long but worth another read methinks,it sort of explains where we were and are heading:

Mediwatch PLC
30 January 2006


MEDIWATCH PLC

Review of the six months ended 31st October 2005

Mediwatch Plc (AIM:MDW), the high - tech medical diagnostic equipment
manufacturer and supplier announces its interim results and review for the half
year ended 31st October 2005.

Distribution deals with two of the world's largest medical equipment companies
are bringing Mediwatch products to new, larger international markets for the
first time, helping to build underlying trading performance.

In addition, continuing development of PSAwatch, a new test which speeds up
dramatically the diagnosis of prostate disease is generating substantial
interest from the medical profession.

Significant achievements during the period

Continued improved underlying trading performance.
9% increase in sales compared with the same period in 2004.
Distribution agreement established with Medtronic Inc. for US and other
markets across the world.
Continued progress with the development of the quantitative point of
care PSA diagnostic system.


Trading and Financial Overview

In the six months ended 31st October 2005 turnover of 842,000 was some 9%
greater than that of the comparable period in 2004 (772,000). Turnover in the
period was particularly influenced by two important issues:

Increased sales to C R Bard under the long term supply agreement,
including sales to the French, Benelux and Nordic markets.
Increased exports, including sales to GE in the Australasian and South
East Asia markets and MC Medical in Japan.

The operating margin in the period was maintained at 42% and the benefits of
continuing firm control of overheads resulted in a reduction in the loss before
tax to 542,000 compared with the loss for the equivalent period last year of
562,000. During the period R&D expenditure amounted to 272,000 (2004:
253,000). Adjusting for the R&D costs, the underlying trading loss was
270,000, representing an improvement of some 39,000 with the comparable figure
from the pervious year.

In October, the Group agreed terms with its bank, HSBC plc, for a sales finance
facility. This will provide adequate funding as the working capital increases
with the greater sales anticipated during 2006 when the sales to the US market
will commence.

In December, a further 470,000 (net of expenses) was raised through the issue
of 4,277,000 fully paid new ordinary 1p shares. These funds are being used to
complete the R&D expenditure related to the Bioscan reader and the desk top
derivative of the Multiscan which are both planned for completion during early
2006. In addition, the funds will be used for further research with a new
antigen to be added to the PSA test strip facilitating a new application for the
Bioscan reader at a future date.

At 31st October 2005 the Group had borrowings of some 196,000 (306,000 cash in
hand at 31st October 2004).

Mediwatch UK Limited

Sales in the period were positively affected by the factors outlined above and
continued success in the export markets is materialising.

Export markets remained a major focus for business development in the period, in
particular USA and a distribution agreement was signed with Medtronic Inc. Under
the terms of the agreement, Medtronic will have exclusive rights in USA and
other countries around the world to market and distribute the innovative
Multiscan, a complete, portable, urological diagnostic platform, providing
clinicians with a variety of key measurements assessing bladder, kidney and
prostate function.

As well as linking Mediwatch to Medtronic's well established, extensive, medical
equipment sales network, the agreement will introduce the Multiscan and
Mediwatch to many new international markets.

Earlier this month, the Company received SDA approval on its portable bladder
scanner, the Portascan, and the uroflow system, the Portaflow. These approvals
will allow sales of the Portascan and Portaflow to both the China and Hong Kong
markets via the Company's agents Physiotec Electronics and Tronda Electronics.

Gross margins have been maintained, despite considerable pressure on prices in
the UK markets, particularly with imports from the Far East. Overhead costs
continued to be rigorously controlled. These factors have resulted in a reduced
loss before tax at 542,000, (2004: 562,000) and an improved underlying trading
performance.

Development of the existing product range and adding new complementary products
is a continuous activity and considerable progress was made in the period,
including:

The completion of the new Multiscan. The ground breaking Multiscan
provides clinicians with mobile, real time, ultrasound imaging, accurate
measurement and organ volume calculation of the bladder, kidney and
prostate. It has been designed to be further developed to be used in other
areas of pathology, vascular, emergency and veterinary medicine
particularly.
Significant progress with the desk top derivative of the Multiscan.
Portascan Plus - the second generation of the well established and
successful Portascan, incorporating some of the technology found in the
Multiscan.
Bladderwatch - a new quantitative point of care bladder cancer test to
be used in conjunction with the Bioscan reader is under development.

Mediwatch Biomedical Limited

Encouraging progress has been made with Mediwatch Biomedical's PSAwatch(TM)
quantitative point of care diagnostic test.

PSAwatch(TM) coupled with the BioScan(TM) reader, both developed by Mediwatch
Biomedical, delivers a point - of - care PSA result . The system will reduce the
time taken to provide PSA results to GPs, hospital doctors and patients, from
days to minutes, and can be conducted by nursing staff using equipment costing a
fraction of the current procedure. PSAwatch(TM) takes testing for prostate
disease out of a higher cost laboratory environment and into the clinic or GP's
surgery.

The incidence of prostate disease is rising and PSA requests are generating
further demand for urology services. It has been estimated that up to 40% of men
over 50 have at least one PSA test per year, largely in a primary care
environment (D'Ambrosio, et al, 2004). Active surveillance of early, localised
prostate cancer may decrease the number of cases undergoing radical treatment
but, in turn, will increase the number of requests for PSA and clinicians
outpatient workload.

Experts believe that the PSAwatch(TM) test could have a profound effect upon the
way prostate disease is diagnosed and treated worldwide. In June 2005, results
from the first clinical trials were presented at the British Association of
Urological Surgeons (BAUS) Annual Meeting and PSAwatch(TM) was cited as 'best of
BAUS' in the President's closing presentation.

Further developments with PSAwatch(TM) have lead to two further papers being
presented at the forthcoming meeting of the European Urological Association
(EUA) conference in April and one paper at the American Urological Association
conference in May.

Following the successful clinical evaluation of the system, the Company has
commenced work relating to obtaining regulatory approvals in Europe and the USA
and anticipate releasing this ground breaking system to the market later this
year.

The biochemistry platform has been designed specifically to facilitate expansion
into other identified areas of medical diagnostics.

The first revenues are expected from this system in the 2006 - 07 financial
year.

Board Changes

Dr. John R. Forrest CBE, FREng joined the Board as a non executive director on
27th June 2005, assuming the position of Chairman on 29th July. Dr. Wang Chong
MBBS, MBA, ASI, joined the Board as a non executive director on 6th January
2006.

Outlook

The directors believe there is optimism for 2006 and beyond.

Much had been achieved over the last few months. The recent commencement of the
Medtronic relationship and the continuing success of the relationships with C R
Bard and GE significantly strengthen the Company's position.

The excellent relationship with the Company's marketing associates coupled with
the recent introduction of the Multiscan, the advanced stage of development of
the Multiscan desk top derivative which, together with the second generation of
the Portascan, is planned to be launched mid 2006, and the expected completion
of the first phase of the PSAwatch(TM) and BioScan(TM) system, also anticipated
for release to market later in the summer, provide strong prospects for the
future.

The recent placing, raising 470,000, together with flexible borrowing
facilities arranged with its bank, places the Company in a good position to
benefit from the opportunities ahead.

I've just basically been catching up after being stuck in a field playing music for 10 days,hope it all wasn't too long winded and most importantly makes sense!
I've finished now.....well for tonight anyways :-)

ptholden,
I believe that the Company are unable to give us information at the moment, I can't see the Company holding the results back for PSA CE approval, so I believe the only reason can be that they are still trying to sign something with Medtronic.
When we receive the results and/or the details of any MDT deal, I am sure we will feel more than happy and understand why the Company has been so vague with projections, etc.
The Company has always gone in the right direction and has achieved the targets it has set out (albeit somewhat later than some expected), I have complete confidence they are still doing the same, without the need for constant confirmation or updates. The holdings of some of the Directors mean they too are hit by the falling SP and I don't go for the MBO theories one bit. I am sure that as soon as they are able, they will answer our questions and we will see the SP go much higher.

As for Treblewide,
I think you will find that the next time the SP rises, this will be a totally different Company and you concerns over small turnover, breakeven, number of unit sales will all be a thing of the past, but each to their own.

Morning all I would not take any notice of results when published its next years and the years after that with the sales of the new products and new countries they are selling into plus the MDT manufacturing agreement that will count,
Dave
ps brave man trebble

Following my rather 'arsey' email to MDW, I have received a reply today. The gist of which is as follows:

MDW share my frustration and disappointment that progress isn't reflected in the share price.

With regard to the Medtronic deal, they are unable to disclose information that is both SP and commercially sensitive. MDW also have to repsect the rights of Medtronic when considering disclosure of information.

They will release information through the appropriate channels at the right time

The difference in publishing results between this and last year are the ongoing discussions and negotiations relating to the Medtronic deal.

Finally:

"Once again, I apologise that you are so disappointed with so many issues relating to Mediwatch, I can only assure you that we are doing our utmost to progress matters in the most expeditious way - even if we are not telling the world about ityet!"

Draw your own conclusions.

pth

Thanks pth, those "ongoing discussions and negotiations" certainly are ongoing!!

yes thanks pth

and another thanks from me

ptholden,
Thank you also,
What were your conclusions?

I have to make it clear that I am very much a believer of MDW products and the long term success of the company. However, my problem with MDW is essentially news flow that will nudge the SP along. This facet of the company is clearly lacking. MDW argue that they are constrained by regulatory issues and the ongoing negotiations with Medtronic. I am not sure I believe this totally, but I do see their point of view. It was also pointed out to me that the Directors hold something like 25% of the company and are also somewhat disappointed at the SP performance. However, their view is probably significantly more long term than my own. This is probably their one and only investment and have little choice but to stick with it.

The reason for the delay in publishing the results was quite re-assuring and it would appear that we can expect some good news when they eventually make an appearance.

I did quite like the final paragraph. It might be construed that when the Medtronic negotiations are finally complete, the shackles can come off and we can see significant news flow. Not too sure about that though. These have got to be the longest negotiations in company history!

My final thought, and it is a slightly cynical one, is that MDW are not going to admit to any problems, whether it be financial, production related, approvals or negotiations with Medtronic. This could still be jam tomorrow.

My stop remains in place and it won't be moved. I rather hope that the Results are out soon. Incidentally, I did ask when, but the question was not answered.

pth

ptholden,
Thank you for your thoughts.
This bit tickled me -
"These have got to be the longest negotiations in company history!"
Maybe that is because this is a subtantial, Company changing deal? Who knows?

Perhaps I should be more cynical, but if there were problems then I doubt we would be able to strike a deal with Medtronic, which the Company obviously think they can, hence the wait.

Sounds to me like the beginning of a management buy out.

Sorry to be lazy, but I'm wielding a paintbrush - what was the date of last year's results?

Think they might have answered your question in the email pth :)

Dodging the flying paint.....Choc,the FR over the last few years have differed in date.

Fred,An MBO doubt it very much.

Had another look at my email response:

"With regard to the results for the year end April, you are absolutely correct in stating that they appear to be late - related to last year they are some 6 weeks later than the comparative date on which we announced the results for 2004 - 05."

Does this mean that the Results will be out in the next week? Or does it mean that they are six weeks later, thus far?

(Last year, released 30 June 05)

pth

Guess it's wait 'n see then innit ;)