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Dehaier Medical Systems Extends Product Offerings with Exclusive Distribution Agreement for Penlon Anesthesia System in North China
Date:6/1/2010

BEIJING, June 1 /PRNewswire-Asia-FirstCall/ -- Dehaier Medical Systems Ltd. (Nasdaq: DHRM), an emerging leader in the development, assembly, marketing and sale of medical products in China, said today that it has become the exclusive distributor in North China of a sophisticated anesthesia product manufactured by Penlon, a UK firm specializing in anesthesia and breathing equipment for 60 years.

Dehaier Medical Systems has been designated by Guangdong Biolight Meditech Co., Ltd., (Penlon Ltd.'s exclusive distributor in China) as the exclusive distributor of Penlon's Prima SP Anaesthesia System (SP101 and SP102) in North China. North China includes six provinces and the cities of Beijing, Tianjin, Hebei, Shandong, Shanxi and Inner Mongolia. The authorization period runs through 2012.

The Prima SP Anesthesia System provides sophistication in a flexible, easy to use package, designed to meet all anesthesia requirements:

    -- Advanced easy to use features for maximum patient safety
    -- Comprehensive choice of layout through modular open architecture
    -- Ultra low flow anesthesia
    -- 'Life-Care' or optional 'Life-Care Plus' Warranty and Customer Care
       scheme

Mr. Ping Chen, Dehaier's Chief Executive Officer, said, "We are continuing to build our line of products and expand our offerings to our customers including hospitals, clinics and government health bureaus. Becoming the exclusive distributor of Penlon in North China is an important opportunity for our company that provides us with access to the $70 million per year market segment for foreign-made anesthesia systems, thus doubling Dehaier's addressable market for anesthesia systems."

Dehaier is currently a provider of Chinese-made anesthesia systems, a market the company estimates is also around $70 million per year.

About Penlon Ltd.

Penlon is a world-class company, established in Oxford, UK in 1943. It exports to over ninety countries worldwide, including China and Japan, and in the USA through their wholly-owned subsidiary based in Minnetonka, Minnesota. Penlon has a broad range of innovative market leading products and systems with well-established brand names, such as anesthesia, intubation, oxygen therapy and suction, and medical gas pipelines. The company is headquartered and has assembly and component manufacturing facilities in Abingdon in Oxfordshire, UK. Website: http://www.penlon.com

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), Penlon (U.K.) and JMS (Japan). Dehaier's technology is based on two patents, five pending patents and proprietary technology. More information may be found at http://www.chinadhr.com .

Information for investors, including an investment profile about Dehaier is available at http://www.hawkassociates.com/profile/dhrm.cfm . An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors is available at http://www.hawkassociates.com .

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
     Email: dehaier@hawkassociates.com


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SOURCE Dehaier Medical Systems Ltd.
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