Mindray Medical International Announces Third Quarter 20...(the third quarter 2007 due toissuances o...)

On March 16, 2007, the 10th People's Congress of China passed the China Unified Corporate Income Tax Law (the "New Law"), which will become effective on January 1, 2008. The New Law establishes a single unified 25% income tax rate for most companies with some preferential income tax rates to be applicable to qualified hi-tech enterprises. The related detailed implementation rules and regulations (the "IRRs") on the definition of various terms and the interpretation and application of the provisions of the New Law are expected to be promulgated by the State Council within 2007. The company currently believes that the new laws do not impact its qualification as a hi- tech enterprise, and as such, believe the current tax rate of 15% will continue to apply. In the event the promulgation of the new IRRs results in a change such that the company will no longer qualify as a hi-tech enterprise, it will be required to adjust certain long term deferred tax liabilities which will result in a loss in the period the change takes effect. If the company were to have applied a 25% tax rate in the third quarter 2007 an additional provision for income taxes of approximately RMB13.1 million (or RMB0.12 per diluted share) would have been recorded, based on the balance of the deferred tax liabilities as of March 31, 2007.

Other Select Data

Average account receivable days outstanding was 22 days in the third quarter 2007 compared to 20 days in the third quarter 2006. Inventory turnover was 64 days in the third quarter 2007 compared to 70 days in the third quarter 2006. Average account payable days outstanding was 57 days in the third quarter 2007 compared to 59 days in the third quarter 2006.

As of September 30, 2007, the company had RMB1,737 million (US$231.8 million) in cash and cash equivalents and short-term investments. Net cash generated from operati
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