China Medical Technologies Reports Third Quarter Financi...(S. dollar ascertified for customs purpos...),Health

Outlook for FY2007

During 4Q FY2007, the Company's BBE acquisition has begun to contribute to the Company's revenues and the Company's FISH business, especially its recurring reagent business, has grown rapidly. However, China experienced a severe snow storm in southern provinces in January 2008, which delayed the delivery and installation of several HIFU systems of the Company. In addition, the Company's interest income has been affected by the substantial decrease in US dollar interest rate as well as the Company's income tax expense by the higher income tax rate due to the implementation of the New Law.

As the result of the above, the Company maintains the current targets for FY2007. The current targeted net revenues for FY2007 range from RMB860 million (US$117.9 million) to RMB885 million (US$121.3 million). The current targeted adjusted net income excluding stock compensation expense and amortization of acquired intangible assets (non-GAAP) for FY2007 ranges from RMB410 million (US$56.2 million) to RMB420 million (US$57.6 million). The current 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$2.03) to RMB15.10 (US$2.07), assuming a diluted number of ADS of approximately 31 million 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 re
'/>"/>