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

.00, the noon buying rate in New York City for cable transfers of RMB per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York, as of Friday, September 28, 2007.

Outlook for FY2007

The Company has revised the current targets for FY2007 based on better than expected ECLIA reagent business. The revised targeted net revenues for FY2007 range from RMB860 million (US$114.8 million) to RMB885 million (US$118.1 million) from the previous range of RMB830 million to RMB870 million. The revised targeted net revenues represent a year-over-year increase of 57.2% - 61.8%.

The revised targeted adjusted net income excluding stock compensation expense and amortization of acquired intangible assets (non-GAAP) for FY2007 ranges from RMB410 million (US$54.7 million) to RMB420 million (US$56.1 million) from the previous range of RMB390 million to RMB410 million. The revised targeted adjusted net income represents a year-over-year increase of 32.3% - 35.5%.

The revised targeted adjusted diluted earnings per ADS excluding stock compensation expense and amortization of acquired intangible assets (non-GAAP) for FY2007 ranges from RMB14.80 (US$1.98) to RMB15.10 (US$2.02) from the previous range of RMB14.15 to RMB14.80 assuming a diluted number of ADS of 31,000,000 and excluding interest for convertible notes and amortization of convertible notes issuance cost.

These targets are based on the Company's current views on the operating and market conditions which are subject to change.

Non-GAAP Measure Disclosures

To supplement its consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles (''GAAP''), the Company uses non-GAAP measures of adjusted net income and adjusted earnings per ADS, which are adjusted from results based on GAAP to exclude the impact of stock compensation expense and amortization of acquired intangible assets. Non-GAAP financial measures are
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SOURCE China Medical Technologies, Inc.
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