D. Medical Industries Ltd.
NASDAQ : DMED
TASE : DMED

D. Medical Industries Ltd.

February 17, 2011 14:54 ET

D. Medical Subsidiary, NextGen Biomed, Not to Proceed With Plan to Acquire ClearPath and Innosense

TIRAT CARMEL, ISRAEL--(Marketwire - Feb. 17, 2011) - D. Medical Industries Ltd. (NASDAQ:DMED)(TASE:DMED) ("D. Medical"), a medical device company engaged through its subsidiaries in the research, development, manufacture and sale of innovative products for diabetes treatment and drug delivery, announced today that, further to its press release of January 2, 2011, its publicly held subsidiary, NextGen Biomed Ltd. ("NextGen"), will not proceed with its previously planned acquisition of the shares of ClearPath Ltd and Innosense Ltd, two privately held Israeli companies engage in the functional food and beverage industry (the "Target Companies").

NextGen and the Target Companies mutually elected to terminate the definitive acquisition agreement. D. Medical does not expect this decision to have any material impact on its core business.

"While NextGen will not be taking this particular new path forward, we expect that it will continue to explore the full range of strategic alternatives available to it to maximize shareholder value. In the meantime, we will to continue to invest our resources towards the successful launch of its diabetes treatment and drug delivery products into its five initial target markets - Mexico and the BRIC countries of Brazil, Russia, India and China - commencing in 2011," said Efri Argaman, D. Medical's Chief Executive Officer.

About D. Medical

D. Medical is a medical device company engaged through its subsidiaries in the research, development, manufacture and sale of innovative products for diabetes treatment and drug delivery. D. Medical has developed durable and semi-disposable insulin pumps, which continuously infuse insulin into a patient's body, using its proprietary spring-based delivery technology. D. Medical believes that its spring- based delivery mechanism is cost-effective compared to the motor and gear train mechanisms that drive competitive insulin pumps and also allows it to incorporate certain advantageous functions and design features in its insulin pumps. D. Medical has also developed an infusion set for insulin pumps and is focusing its research and development efforts on the development of next generation insulin pumps. For more information, please visit http://www.dmedicalindustries.com (corporate) and http://www.springnow.com (healthcare professionals, patients and caregivers).

Forward-Looking Statements

This press release contains forward-looking statements (as defined by the Israeli Securities Law, 1968, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) that involve risks and uncertainties. These statements include forecasts, goals, uncertainties and assumptions and relate, inter alia, to D. Medical's future expectations in connection with its level of sales, markets penetration, readiness of its production lines and timing of markets penetration. The forward-looking statements are based on D. Medical's current expectations and beliefs which are based on, among other things, its analysis of publicly available information and market research reports. All forward-looking statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward- looking statements. Such risks and uncertainties include, but are not limited to, the impact of general economic conditions, competitive products, product demand, the performance of D. Medical's distributors and contract manufacturer, regulatory trends and approvals and healthcare reform legislation. If one or more of these risks and/or uncertainties materialize, or if the underlying assumptions prove to be incorrect, D. Medical's actual results, performance or achievements could differ materially from those expressed in, or implied by, any such forward-looking statements or results which are based upon such assumptions. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or of any of them will transpire or occur, what impact it will have on D. Medical's results of operations or financial condition. D. Medical does not undertake to update any forward-looking statements.

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