Winner Medical Reports Net income Increased By 72.24% for Fourth Quarter Preliminary Earnings 2009

Tuesday, November 17, 2009 General News
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SHENZHEN, China, Nov. 16 Winner Medical Group Inc.(Amex: WWIN; "Winner Medical", or the "Company"), today reported preliminaryfinancial results for the fourth quarter 2009. The unaudited numbers aresubject to change.

"During the fourth quarter, we delivered solid improvements in revenue androbust growth in profits. Increased volume of large sales orders from Northand South American customers, market share gains in China with brandedproducts, and rapid growth in sales of our PurCotton product line benefittedboth the top line and the significant margin expansion," Mr. Jianquan Li,Chairman and Chief Executive Officer of Winner Medical, commented.

"By leveraging our diversified line of high quality products with improvedproduction efficiencies, Winner Medical is well-positioned to driveincremental growth and profitability during 2010 from both the internationaland domestic markets. Disposable products create a recurring revenue streamand our cash flow and strong working capital position will enable us tofurther expand our PurCotton production capabilities to capitalize on themarket demand.

China Medical Market Business Update:

Preliminary sales revenue to customers in China was $5.10 million,representing a 123.40% increase over the fourth quarter of fiscal year 2008.The Company has been intently focused on building its own brand in China,which is gaining market acceptance among customers and end users, whiledriving growth. In April 2009, "Winner" was recognized by the Chinese StateAdministration for Industry and Commerce as a well-known trademark. Resultsalso benefitted from increased demand for face masks and protective gowns as aresult of H1N1 flu in China.

The Company's sales channel in China includes: hospitals, localdistributors, and over-the-counter (OTC), drugstore chains. To date, theCompany has entered hospitals in major cities including Beijing, Shanghai,Shenzhen, Guangzhou, Wuhan, Chengdu, and Fujian, as well as large adjacentcities. In addition, the Company has sold products to 7 out of the top 10drugstores chains in China, which have a combined network of approximately2,000 stores across the country, and represent an important customer segment.

The Company attended the 62nd China International Medical Equipment Fair("CMEF") in Chengdu, China, which was held October 28 - 31. Winner Medicalreached the majority of its existing clients in China who have indicated theirintentions to expand our business relationship. These companies include suchwell known names as China National Pharmaceutical Group Corporation, thelargest pharmaceutical group company in China and Kelun Pharmaceutical, one ofthe largest professional manufacturers of IV solutions in the world. In orderto further establish the Winner brand name and gain additional market share,the Company participated in a production promotion with West China Hospital.


In the fourth quarter of fiscal 2009, the Company's PurCotton sales grewrapidly. Preliminary sales revenue of $2.31 million represents a 91.33%increase over the $1.21 million recorded during the third quarter of fiscal2009. PurCotton jumble rolls were sold to customers in China, the U.S.,Europe and Japan who produce consumer products, including sanitary andincontinence products. The Company is also processing orders of PurCottonfinished medical products, such as operating room towels and sponges, forcustomers in North America and Europe.

Winner Medical's joint venture, Winner Medical (Hong Kong) Ltd, or "WinnerHong Kong" was awarded the "Certificate of Merit" of the HSBC Living BusinessAwards 2009, which recognized the Company's PurCotton as an eco-materialproduct for customers and the community, while establishing a bettereco-mindset within the workforce.

Looking forward, the Company is marketing its own branded PurCottonconsumer and home care products in China, such as wipes, baby products,feminine products and other hygiene products. Therefore, the Company isconfident in its mid to long-term growth potential.

About Winner Medical:

Winner Medical is a leading manufacturer and the largest exporter byvolume in the medical dressing industry in China. Headquartered in Shenzhen,the Company has seven wholly-owned operating subsidiaries and fourjoint-ventures with over 5,000 employees. The Company engages in themanufacturing, sale, research, and development of medical care products, woundcare products, home care products and PurCotton products, a nonwoven fabricmade from 100% natural cotton. The products are sold worldwide, with Europe,the United States and Japan serving as the top three markets. The Companycurrently holds more than sixty patents and patent applications for variousproducts and manufacturing processes and is one of the few Chinese companieslicensed by the U.S. Food and Drug Administration (FDA) to ship finished,sterilized products directly to the United States market. To learn more aboutWinner Medical, please visit Winner Medical's web site at .

Forward-Looking Statements:

This press release contains certain statements that may include"forward-looking statements" within the meaning of Section 27A of theSecurities Act of 1933, as amended, and Section 21E of the Securities ExchangeAct of 1934, as amended. All statements, other than statements of historicalfact included herein are "forward-looking statements" including statementsregarding Winner Medical and its subsidiary companies' business strategy,plans and objective and statements of non-historical information. Theseforward-looking statements are often identified by the use of forward-lookingterminology such as "believes," "expects" or similar expressions, involveknown and unknown risks and uncertainties. Although Winner Medical believesthat the expectations reflected in these forward-looking statements arereasonable, they do involve assumptions, risks and uncertainties, and theseexpectations may prove to be incorrect. You should not place undue relianceon these forward-looking statements, which speak only as of the date of thispress release. Winner Medical's actual results could differ materially fromthose anticipated in these forward-looking statements as a result of a varietyof factors, including those discussed in Winner Medical's periodic reportsthat are filed with and available from the Securities and Exchange Commission.All forward-looking statements attributable to Winner Medical or personsacting on its behalf are expressly qualified in their entirety by thesefactors. Other than as required under the securities laws, Winner Medical doesnot assume a duty to update these forward-looking statements.Fourth quarter fiscal 2009 preliminary results: -- Sales revenue increased by 9.72% to $27.67 million vs. Q4 2008 -- Net income increased by 72.24% to $2.75 million vs. Q4 2008 -- Chinese market sales increased by 123.40% to $5.10 million vs. Q4 2008 -- PurCotton product sales increased 91.33% to $2.31 million from Q3 fiscal 2009

SOURCE Winner Medical Group Inc.

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