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.

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.