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 subsidiaries, Spring Health Solutions Ltd. and Spring Set Health Solutions Ltd. (collectively, "Spring Health"), have signed an exclusive distribution agreement with NordicInfu Care AB ("Nordicinfu"), a Swedish company, for the distribution of its Spring™ Universal Infusion Sets in the Nordic countries. The agreement replaces a previous distribution agreement for the Swedish territory and expands the distribution network to the entire Nordic region.  

The agreement has an initial term of three years, commencing on the date of the distributor's initial order, and will thereafter be automatically renewed for one-year periods. In addition, each party may terminate the agreement without cause upon six months' prior written notice to the other party. Pursuant to the agreement, the parties have agreed to set yearly sales targets.

According to data provided by the International Diabetes Federation, approximately 1.2 million diabetes patients live in the Nordic countries, constituting 6.7% of their population.

"As D. Medical continues to roll out its products in Europe in support of expanding its global brand and product recognition, it is important that we establish as broad a distribution network as possible," said Efri Argaman, D. Medical's Chief Executive Officer. "Nordicinfu's expertise in the diabetes space and well-established operations throughout the Nordic countries provides a strong foundation for us to expand our access to that significant market territory. We look forward to building a successful strategic alliance with Nordicinfu."

The Company also announced that its distribution agreement with EXXE s.r.l., an Italian Company, was terminated by D. Medical effective as of August 15, 2012, according to its terms. D. Medical is currently in discussions with other potential distribution partners for that region. 

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 NordicInfu Care AB

NordicInfu Care AB is a Swedish company that provides medical products, pharmaceutical products and services that facilitate the administration of drugs in the patients' homes. Its priority areas include diabetes and Parkinson's disease. The company is also active in Immune Deficiency and Pulmonary Hypertension. The company has its own customer service with warehouses and distribution network. 

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 of any of them will transpire or occur, what impact it will have on D. Medical's results of operations or financial condition. D. Medicals 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
         
         Israeli Investor Relations:
         
         Michal Efraty
         T: +972-3-6950380
         M: +972-52-3044404
         michal@efraty.com
         
         North American Investor Contact:
         Stephen Kilmer
         T: 212-618-6347
         stephen@dmedicalindustries.com