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Dehaier Medical Systems Continues Product Line Expansion. Signs Exclusive Distribution Agreement with HEYER Medical for Respiratory Products in China

BEIJING, May 24 /PRNewswire-Asia-FirstCall/ -- Dehaier Medical Systems Ltd. (Nasdaq: DHRM), an emerging leader in the development, assembly, marketing and sale of medical products in China, announced today an exclusive distributor agreement for HEYER Medical's Cumulus ultrasonic nebulizer in China. Dehaier is authorized to distribute all models of this product.

HEYER Cumulus is suitable for the treatment of respiratory tract conditions such as asthma, bronchitis, chronic respiratory infections and others. The unit can be used for all aspects of respiratory treatment and air humidification. With a full range of accessories, the Cumulus Nebulizer is tailored for optimum application in hospitals, surgeries and at home.

HEYER Cumulus is designed to be extremely easy to clean. All application parts and the ultrasonic cup can be dismantled in seconds. In addition, all parts (including the ultrasonic cup assembly) that may be subject to patient contamination can be easily disinfected or autoclaved.

Mr. Volker Muller, General Manager of HEYER Medical (Beijing) Ltd., said, "We are very pleased that Dehaier will represent HEYER products in China. Dehaier is a premier medical device company that has a powerful distribution network in China. We believe this exclusive distribution agreement is an excellent business expansion opportunity for both companies."

Mr. Ping Chen, Dehaier's Chief Executive Officer, said, "Our new partnership with HEYER Medical further supplements our product line for treatment of respiratory diseases. This not only provides Dehaier with additional highly sophisticated products, but also widens the experience of our marketing and service teams. This exclusive agreement provides us with access to the market segment in China for nebulizer products, which we estimate to be about $30 million per year. The Cumulus is an ideal product addition to our Homecare Medical Products segment that already includes homecare ventilators, oxygen generators, sleep screening systems and our Dehaier rhinitis hyperthermia device.

"We estimate that on a global basis, the fast growing market for respiratory and oxygen homecare products is in excess of $2.0 billion per year," Chen said.

About HEYER Medical AG

HEYER was founded in 1883 in Germany and has become an innovator in inhalation technology for the treatment of respiratory tract diseases. Today HEYER is an internationally acknowledged specialist in state-of-the-art inhalation and anesthesia medical equipment, oxygen concentrators, breathing therapy equipment and connecting equipment. HEYER products are used all over the world, particularly in the medical field, in clinics and practices in Europe and Asia as well as in the Middle East, South America and the USA. Our inhalation equipment is also increasingly used in wellness applications and for treatment and care at home. Website

About Dehaier Medical Systems Ltd.

Dehaier Medical Systems is an emerging leader in the development, assembly, marketing and sale of medical products in China, including respiratory and oxygen homecare products. The company develops and assembles its own branded products from third party components. The company also distributes products designed and manufactured by other companies including medical devices and respiratory and oxygen homecare products from IMD (Italy), Timesco (UK), ResMed (Australia), Welch Allyn (USA), HEYER (Germany) and JMS (Japan). Dehaier's technology is based on two patents, five pending patents and proprietary technology. More information may be found at .

Information for investors, including an investment profile about Dehaier is available at . An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors is available at .

Forward-looking Statements

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

    For more information, please contact:

    Investor contact:

     Hawk Associates
     Julie Marshall or Frank Hawkins
     Tel:   +1-305-451-1888

SOURCE Dehaier Medical Systems Ltd.
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