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China Medical Technologies Reports Second Quarter Financial Results
Date:11/20/2007

included in the computation of diluted earnings per ADS because to do

so would have been anti-dilutive.

China Medical Technologies, Inc.

Reconciliations of Non-GAAP Adjusted Net Income to GAAP Net Income

For the Three Months Ended

June 30,

September 30, 2007 September 30,

2006 Restated(1) 2007

RMB RMB RMB US$

(in thousands except for per ADS

information)

GAAP net income 71,647 44,823 77,385 10,328

Adjustments:

Stock compensation expense 319 1,379 5,538 739

Amortization of acquired

intangible assets 3,729 22,475 22,182 2,960

Non-GAAP adjusted net income 75,695 68,677 105,105 14,027

GAAP earnings per ADS

- basic 2.62 1.71 2.95 0.39

- diluted(2) 2.62 1.70 2.88 0.38

Non-GAAP adjusted earnings per

ADS

- basic 2.75 2.62 4.01 0.54

- diluted(2) 2.75 2.61 3.78 0.50

Weighted average number of ADS

- basic 27,360,000 26,196,308 26,210,004 26,210,004

- diluted(2) 27,381,116 26,317,214 30,989,602 30,989,602

Notes:

(1) Adjustments have been made to restate certain numbers including the

increase in intangible assets and relevant amortization, the

recognition of a deferred credit and the decrease in goodwill and

deferred
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SOURCE China Medical Technologies, Inc.
Copyright©2007 PR Newswire.
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