DMED D. Medical Industries Ltd. - Ordinary Shares (MM)

D. Medical Industries Ltd. (Nasdaq:DMED) (TASE:DMED) ("D. Medical" or the "Company"), 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 its subsidiary, Spring Health Solutions Inc. ("Spring Health"), has signed a non-exclusive agreement with Solara Medical Supplies Inc. ("Solara") for distribution of its Spring™ Universal Infusion Sets in the United States.

The agreement has an initial term of two years, commencing on the date of Solara's initial order, and will thereafter be automatically renewed for one-year periods. In addition, each party may terminate the agreement upon three months prior written notice to the other party. 

The U.S. insulin pump and disposables market is large and growing. According to the American Diabetes Association, approximately 26 million diabetes patients live in the United States, constituting 8.3% of its population. Of those, experts estimate that 5.4%, or 1.4 million, suffer from Type 1 diabetes and 350,000 currently rely on insulin pump therapy. A recent U.S. Centers for Disease Control and Prevention report estimated that 1 in 3 Americans will have diabetes by 2050 if current trends continue. The annual market for infusion sets alone in the U.S. is estimated to total $730 million.

Efri Argaman, D. Medical's Chief Executive Officer, commented, "We have been very pleased by the strong level of interest shown by distributors to market and sell our ground-breaking Spring Universal Infusion Sets in the U.S. Indeed, this marks the signing of our fifth U.S. distribution agreement in less than six months. Specializing in diabetes patient care for over 20 years, California-based Solara is a great addition to D. Medical's distribution network. Their proven expertise and well established infrastructure are well aligned with our growth strategy."

About the Spring Universal Infusion Set

The Spring Universal Infusion Set is compatible with most insulin pumps currently available on the market. Going beyond the minimum requirements of subcutaneous drug delivery, the Spring Universal offers best-in-class features such as a hidden, auto-retractable needle, 360 degree connector, and smallest one-click, all-in-one inserter.

The core of the Spring Universal Infusion Set is the proprietary Detach-Detect mechanism. In the case the base of the infusion set detaches from the user's body, a blocking mechanism is triggered which, in turn, creates an occlusion. This evokes an occlusion alarm in an insulin pump. This unique feature enables exceptional reliability for continuously controlled and monitored insulin delivery, providing additional safety and peace of mind - especially for athletes and the parents of pediatric patients.

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 and a device that will combine a continuous glucose monitoring system and an insulin pump on the same patch. For more information, please visit http://www.dmedicalindustries.com (corporate) and http://www.springnow.com (healthcare professionals, patients and care givers).

About Solara Medical Supplies, Inc.

Solara Medical Supplies, Inc. is a national supplier and resource for people living with diabetes throughout the United States. Headquartered in San Diego, CA with offices in Livonia, MI and Dothan, AL, Solara provides a full range of diabetes supplies, specializing in insulin pumps, pump supplies, glucose monitors, and pump accessories. Solara's mission is to provide better management to patients with diabetes by striving to be a one-stop-shop and providing a full support team. The complete range of Solara products, including Spring Universal Infusion Set, can be purchased or sampled from Solara Medical Supplies, Inc., http://www.springinfusionsets.com or by calling 800-423-0896.

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 and cost of sales, manufacturing volumes, the cost-effectiveness of its spring-based design, target markets, regulatory approvals 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, product performance, the performance of D. Medical's contract manufacturer and distributors, 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 if any of them 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.

CONTACT: Company Contact:
         
         Amir Loberman
         Chief Financial Officer
         D. Medical Industries Ltd.
         T: +972-73-2507135
         info@springnow.com
         
         North American Investor Contact:
         
         Stephen Kilmer
         Kilmer Lucas Inc.
         T: 212-618-6347
         stephen@kilmerlucas.com
         
         Israeli Investor Relations:
         
         Michal Efraty
         T: +972-3-6950380
         M: +972-52-3044404
         michal@efraty.com