SHENZHEN, China, Aug. 29 Winner Medical Group, Inc.("Winner Medical") (OTC Bulletin Board: WMDG), announces that it has commencedmass production for the orders received from the leading European company toproduce advanced dressings. "We believe this marks our high-end productioncapability, and validates our ability to develop new OEM relationships andexpand our product reach in Japan, Europe and the US," Mr Li, the CEO of theGroup, expressed enthusiastically.
Mass production for the initial orders has started in May 2007. The clienthas so far made orders worth $1.3M, and it is anticipated that the contractsigned in April will bring in annual sales of $2M in the coming years. Around$0.63M of these advanced dressings have already been exported to Europe, andit is expected that follow-up orders will start coming in October and November.
"Our ability to leverage relationships with world-class medical supplyOEMs, along with our strong research and development capabilities and highquality products, position Winner Medical to capture unlimited opportunitiesin the future," added Mr. Li.
The creativity of Winner Medical's research and development team hasbrought innovation beyond the newly patented PurCotton products. It hasrecently developed a special technique that could be applied to Purcottonsurgical gown products. A special coating is set on one side of the PurCottonfabric so that one side will be liquid repellent enabling better protection tosurgical doctors from unwanted liquids and ensuring better hygiene inhospitals. The other side will remain liquid absorbent, giving more comfort todoctors while they perform operations.
The new technology will raise Winner Medical's competitive advantage inthe global market, where the demand for disposable surgical gowns is expandingrapidly. Medical research has shown that disposable medical drapes and gownscould ensure better hygiene than re-usable ones. Furthermore, current marketpenetration of disposables is rather low in Europe. Winner Medical will beinstalling machines for manufacturing the surgical gowns in the 2nd quarter offiscal year 2008 to capture this golden opportunity. The coating technology inmedical use is under utility patent application in more than 25 countries.
About Winner Medical
Winner Medical is a holding company comprised of eight wholly ownedmanufacturing and distribution facilities, two joint venture factories and onetrading company. Winner Medical is primarily engaged in the development,manufacturing and distribution of high-quality cotton disposable medicaldressings and disposable products. Winner Medical's products include surgicaldressings, dressing packs, wound care dressings, protective products, medicalinstruments, dental products and hygiene products for the institutional andhome care markets. Winner Medical products are manufactured in China and solddomestically and abroad, in countries and areas such as Japan, Germany, Italy,the Netherlands, Australia, France, the United States, South America, Africaand the Middle East. Winner Medical is one of a few Chinese companieslicensed by the U.S. Food and Drug Administration to ship finished, sterilizedproducts directly to the U.S. market. To learn more about Winner Medical,visit Winner Medical's web site http://www.winnermedical.com .
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. Thesefor