China Medical Technologies Reports FY2008 Fourth Fiscal Quarter and Full Year Unaudited Financi...(statistical release of the Federal Reser...),Health

Annual Cash Dividend

The Board of Directors has declared an annual cash dividend on its ordinary shares of US$0.055 per share, equivalent to US$0.55 per ADS based on the Company's unaudited net income for FY2008. The cash dividend will be paid on or around October 28, 2009 to shareholders of record as of September 30, 2009.

Outlook

Please refer to the section "Outlook for 2Q FY2009" in the earnings announcement for FY2009 First Fiscal Quarter.

Recent Development on the Sale of the HIFU Business

In June 2009, the Company received a letter from Chengxuan International Ltd. ("Chengxuan"), the buyer of the HIFU Business and a major shareholder of the Company in connection with a notice issued by the State Food and Drug Administration ("the SFDA") in April 2009. The notice from the SFDA required the submission of new clinical trial data for the renewal application of the registration certificate for the HIFU system for the further evaluation of the renewal application and did not permit the sale of the HIFU system starting from April 2009 until the approval of the renewal application. The Company recently received another letter from Chengxuan which updated their ongoing discussion with the SFDA about the requirements for the new clinical trial data for the HIFU system, Chengxuan's loss of revenues due to the unexpected prohibition on selling the HIFU system since April 2009 and their indication of seeking maximum compensation of approximately US$15.5 million. The Company has established a special committee comprising two independent directors to evaluate and handle the related matters with Chengxuan and the special committee has engaged legal counsel to advise on Chengxuan's request for compensation. Due to this subsequent event and the uncertainty of the outcome, the Compan
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