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Mindray Medical International Announces Full Year and Fourth Quarter 2007 Results
Date:3/5/2008

Full Year Revenue Up 47.3% and Net Income Up 63.5% Compared to 2006

Company Declares Cash Dividend of US$0.18 Per Share

SHENZHEN, China, March 5 /Xinhua-PRNewswire-FirstCall/ -- Mindray Medical International Limited (NYSE: MR), a leading developer, manufacturer and marketer of medical devices in China with a rapidly growing international presence, today announced its selected unaudited financial results for the fourth quarter and full year ended December 31, 2007.

Highlights for the Full Year 2007

-- Full year 2007 net revenues were RMB2,230.9 million (US$305.8 million),

an increase of 47.3% over the full year 2006.

-- Net revenues generated in international markets in the full year

2007 increased 53.3% to RMB1,128.0 million (US$154.6 million)

from RMB735.6 million in the full year 2006.

-- Net revenues generated in China in the full year of 2007 increased

41.5% to RMB1,102.9 million (US$151.2 million) from RMB779.4 million

in the full year 2006.

-- Full year 2007 non-GAAP net income, as defined below, was RMB672.0

million (US$92.1 million), an increase of 61.2% from RMB416.8 million

in the full year 2006. Full year GAAP net income was RMB591.6 million

(US$81.1 million), an increase of 63.5% from RMB361.8 million in the

full year 2006.

-- Full year 2007 non-GAAP diluted earnings per share, as defined below,

was RMB5.95 (US$0.82). Full year 2007 GAAP diluted earnings per share

was RMB5.23 (US$0.72).

Highlights for Fourth Quarter 2007

-- Fourth quarter 2007 net revenues were RMB673.8 million (US$92.4

million), an increase of 41.2% over the foo provides non-GAAP financial measures, including non-GAAP gross margin, non-GAAP operating profit, non-GAAP net income and non-GAAP earnings per share on a basic and fully diluted basis. The company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing Mindray's financial performance and liquidity and when planning and forecasting future periods. These non-GAAP operating measures are useful for understanding and assessing Mindray's underlying business performance and operating trends and the company expects to report operating profit and net income on a non-GAAP basis using a consistent method on a quarterly basis going forward.

The company computes its non-GAAP financial measures using the same consistent method from quarter to quarter. The company notes that these measures may not be calculated on the same basis of similar measures used by other companies. Readers are cautioned not to view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies, and should refer to the reconciliation of GAAP results with non-GAAP results for the

three-month periods ended December 31, 2006 and 2007, respectively, in the attached financial statements.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements," including those related to the company's anticipated operating results for 2008, qualification of the company as a "New and High-Tech Enterprise" and related preferential tax rates, customer acceptance of company products, continued R&D spending levels, increased headcounts, growth in the company's business segments and geographies, business execution, growth in medical spending and the factors driving that growth, and international expansion. These statements are not historical facts but instead represent only our belief regarding future events, many of which, by their nature, are inherently uncertain and outside of our control. It is possible that our actual results and financial condition and other circumstances may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including but not limited to: the expected growth of the medical device market in China and internationally; relevant government policies and regulations relating to the medical device industry; market acceptance of our products; our expectations regarding demand for our products; our ability to expand our production, our sales and distribution network and other aspects of our operations; our ability to stay abreast of market trends and technological advances; our ability to effectively protect our intellectual property rights and not infringe on the intellectual property rights of others; competition in the medical device industry in China and internationally; and general economic and business conditions in the countries in which we operate. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in our public filings with the Securities and Exchange Commission. For a discussion of other important factors that could adversely affect our business, financial condition, results of operations and prospects, see "Risk Factors" beginning on page 5 of our annual report on Form 20-F, filed on June 26, 2007. Our results of operations for the fourth quarter of 2007 and for fiscal year 2007 are not necessarily indicative of our operating results for any future periods. Any projections in this release are based on limited information currently available to us, which is subject to change. Although such projections and the factors influencing them will likely change, we will not necessarily update the information. Such information speaks only as of the date of this release.

This announcement contains translations of certain Renminbi amounts into US dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to US dollars as of and for the quarter ended December 31, 2007 were made at the noon buying rate in the City of New York for cable transfers in Renminbi per US dollar as certified for customs purposes by the Federal Reserve Bank of New York, or the noon buying rate, as of December 31, 2007, which was RMB7.2946 to US$1.00. Mindray makes no representation that the Renminbi or US dollar amounts referred to in this release could have been or could be converted into US dollars or Renminbi, as the case may be, at any particular rate or at all.

All references to "shares" are to our ordinary shares, which are divided into two classes, Class A and Class B. Each of our American Depositary Shares, which trade on the New York Stock Exchange, represents one Class A ordinary share.

The accounting policies underlying the financial information for the segmental reporting are based primarily on statutory accounting requirements in the PRC.

Exhibit 1

MINDRAY MEDICAL INTERNATIONAL LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

As at December 31, As at December 31,

2006 2007

RMB RMB US$

(derived from

audited

financials) (unaudited)(unaudited)

ASSETS (In thousands) (In thousands)

Current assets:

Cash and cash equivalents 1,709,596 1,379,009 189,045

Short-term investments 13,312 407,744 55,897

Accounts receivable, net 104,679 210,176 28,813

Inventories 122,071 181,022 24,816

Value added tax receivables -- 238 33

Other receivables 11,774 39,155 5,368

Prepayments and other 19,263 14,009 1,920

Deferred tax assets - current

portion 2,747 4,400 603

Total current assets 1,983,442 2,235,753 306,494

Loans to employees 4,851 4,366 599

Long-term investments 105,573 250,000 34,272

Other assets 2,124 15,294 2,097

Advance for purchase of plant and

equipment -- 132,053 18,103

Property, plant and equipment, net 186,980 350,551 48,056

Land use right 2,505 17,764 2,435

Intangible assets, net 149,479 130,649 17,910

Goodwill 122,169 122,169 16,748

Total assets 2,557,123 3,258,599 446,714

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Notes payable 50,625 63,460 8,700

Accounts payable 79,352 132,820 18,208

Advance from customers 47,007 52,696 7,224

Salaries payables 55,676 60,857 8,343

Other payables 100,082 124,661 17,089

Income taxes payable 11,703 56,246 7,711

Other taxes payable 7,937 14,801 2,029

Total current liabilities 352,382 505,541 69,303

Commitment and contingencies:

Minority interests 11 11 2

Deferred tax liabilities, net 21,815 24,699 3,386

21,826 24,710 3,387

Shareholders' equity:

Ordinary shares 110 111 15

Additional paid-in capital 1,934,937 2,062,361 282,724

Retained earnings 266,833 737,596 101,115

Accumulated other comprehensive

loss (18,965) (71,720) (9,832)

Total shareholders' equity 2,182,915 2,728,348 374,023

Total liabilities and shareholders'

equity 2,557,123 3,258,599 446,714

(1) all translations from Renminbi to US dollars as of and for the quarter

and year ended December 31, 2007 were made at the noon buying rate of

the Federal Reserve Bank of New York as of December 31, 2007, which

was RMB 7.2946 to US$1.00

Exhibit 2

MINDRAY MEDICAL INTERNATIONAL LIMITED CONDENSED CONSOLIDATED

STATEMENTS OF OPERATIONS

Three months ended December 31,

2006 2007 2007

RMB RMB US$

(unaudited) (unaudited) (unaudited)

(In thousands, except share and per

share data)

Net revenues

- PRC 225,760 328,306 45,007

- International 251,597 345,499 47,364

Net revenues 477,357 673,805 92,370

Cost of revenues (note 2) (220,396) (316,978) (43,454)

Gross profit 256,961 356,827 48,917

Selling expenses (note 2) (62,416) (99,007) (13,573)

General and administrative

expenses (note 2) (32,908) (25,914) (3,552)

Research and development

expenses (note 2) (45,966) (67,994) (9,321)

Expense of in-progress research

& development (31,835) -- --

Other general expenses 179 16 2

Operating income 84,015 163,928 22,472

Other income, net 7,483 6,190 849

Interest income 19,012 20,015 2,744

Interest expense (135) (24) (3)

Income before income taxes and

minority interests 110,375 190,109 26,062

Provision for income taxes (4,408) (32,160) (4,409)

Minority interests -- -- --

Net Income 105,967 157,949 21,653

Basic earnings per share 1.00 1.48 0.20

Diluted earnings per share 0.95 1.39 0.19

Shares used in the computation

of:

Basic earnings per share 105,727,677 106,774,444 106,774,444

Diluted earnings per share 111,553,018 113,457,341 113,457,341

(2) Share-based compensation

charges incurred during the

period related to:

Cost of revenues 188 836 115

Selling expenses 817 6,032 827

General and administrative

expenses 3,446 4,234 580

Research and development

expenses 2,090 6,403 878

MINDRAY MEDICAL INTERNATIONAL LIMITED CONDENSED CONSOLIDATED

STATEMENTS OF OPERATIONS

Year ended December 31,

2006 2007 2007

RMB RMB US$

(derived from

audited

financials) (unaudited) (unaudited)

(In thousands, except share and per

share data)

Net revenues

- PRC 779,378 1,102,927 151,198

- International 735,603 1,128,010 154,636

Net revenues 1,514,981 2,230,937 305,834

Cost of revenues (note 2) (687,484) (1,006,459) (137,973)

Gross profit 827,497 1,224,478 167,861

Selling expenses (note 2) (211,858) (311,437) (42,694)

General and administrative

expenses (note 2) (76,010) (91,105) (12,489)

Research and development

expenses (note 2) (149,141) (215,205) (29,502)

Expense of in-progress research

& development (31,835) -- --

Other general expenses 202 (181) (25)

Operating income 358,855 606,550 83,151

Other income, net 6,016 17,870 2,450

Interest income 27,890 73,726 10,107

Interest expense (462) (87) (12)

Income before income taxes and

minority interests 392,299 698,059 95,695

Provision for income taxes (24,057) (106,454) (14,594)

Minority interests (6,456) 0 0

Net Income 361,786 591,605 81,102

Basic earnings per share 4.16 5.56 0.76

Diluted earnings per share 3.75 5.23 0.72

Shares used in the computation

of:

Basic earnings per share 87,066,163 106,328,347 106,328,347

Diluted earnings per share 96,370,084 113,011,244 113,011,244

(2) Share-based compensation

charges incurred during the

period related to:

Cost of revenues 614 2,023 277

Selling expenses 6,372 21,081 2,890

General and administrative

expenses 12,195 16,919 2,319

Research and development

expenses 6,873 18,428 2,526

Exhibit 3

MINDRAY MEDICAL INTERNATIONAL LIMITED

RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE

NEAREST COMPARABLE GAAP MEASURES

Three months ended December 31,

2006 2007 2007

RMB RMB US$

(unaudited) (unaudited) (unaudited)

(In thousands, except share and per

share data)

Net revenues 477,356 673,805 92,370

Non-GAAP net income (note 3) 141,512 185,372 25,412

Non-GAAP net margin 29.6% 27.5% 27.5%

Expense/Amortization of acquired

intangible assets (34,121) (4,708) (645)

Deferred tax impact related to

acquired intangible assets 5,118 706 97

Effect of change in tax rate on

deferred tax -- (5,916) (811)

Share-based compensation (6,541) (17,505) (2,400)

GAAP net income 105,968 157,949 21,653

GAAP net margin 22.2% 23.4% 23.4%

Non-GAAP income per share - basic 1.34 1.74 0.24

Non-GAAP income per share - diluted 1.27 1.63 0.22

GAAP income per share - basic 1.00 1.48 0.20

GAAP income per share - diluted 0.95 1.39 0.19

Shares used in computation of:

Basic earnings per share 105,727,677 106,774,444 106,774,444

Diluted earnings per share 111,553,018 113,457,341 113,457,341

Non-GAAP operating income 124,677 186,141 25,518

Non-GAAP operating margin 26.1% 27.6% 27.6%

Expense/Amortization of acquired

intangible assets (34,121) (4,708) (645)

Share-based compensation (6,541) (17,505) (2,400)

GAAP operating income 84,015 163,928 22,472

GAAP operating margin 17.6% 24.3% 24.3%

Non-GAAP gross profit 257,149 362,370 49,677

Non-GAAP gross margin 53.9% 53.8% 53.8%

Expense/Amortization of acquired

intangible assets -- (4,708) (645)

Share-based compensation (188) (836) (115)

GAAP gross profit 256,961 356,827 48,917

GAAP gross margin 53.8% 53.0% 53.0%

MINDRAY MEDICAL INTERNATIONAL LIMITED

RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS MEASURES TO THE

NEAREST COMPARABLE GAAP MEASURES

Year ended December 31,

2006 2007 2007

RMB RMB US$

(unaudited) (unaudited) (unaudited)

(In thousands, except share and per

share data)

Net revenues 1,514,981 2,230,937 305,834

Non-GAAP net income (note 3) 416,843 671,978 92,120

Non-GAAP net margin 27.5% 30.1% 30.1%

Expense/Amortization of acquired

intangible assets (34,121) (18,830) (2,581)

Deferred tax impact related to

acquired intangible assets 5,118 2,824 387

Effect of change in tax rate on

deferred tax -- (5,916) (811urth quarter 2006.

-- Net revenues generated in international markets in the fourth

quarter 2007 were RMB345.5 million (US$47.4 million), an increase of

37.3% from RMB251.6 million in the fourth quarter 2006.

-- Net revenues generated in China in the fourth quarter 2007 were

RMB328.3 million (US$45.0 million), an increase of 45.4% from

RMB225.8 million in the fourth quarter 2006.

-- Fourth quarter 2007 non-GAAP net income was RMB185.4 million (US$25.4

million), an increase of 31.0% from RMB141.5 million in the fourth

quarter 2006. Fourth quarter 2007 GAAP net income was RMB157.9 million

(US$21.7 million), an increase of 49.1% from RMB106.0 million in the

fourth quarter 2006.

-- Fourth quarter 2007 non-GAAP diluted earnings per share was RMB1.63

(US$0.22). Fourth quarter 2007 GAAP diluted earnings per share was

RMB1.39 (US$0.19).

"We are proud of our performance in our first full year as a public company," said Mr. Xu Hang, Mindray's chairman and co-chief executive officer. "In 2007, we delivered 47 percent revenue growth over last year and net income growth was even higher at 63 percent."

Financial Results for Full Year and Fourth Quarter 2007

Mindray reported net revenues of RMB2,230.9 million (US$305.8 million) for the full year 2007, a 47.3% increase from RMB1,515.0 million 2006. Mindray reported net revenues of RMB673.8 million (US$92.4 million) for the fourth quarter 2007, a 41.2% increase from RMB477.4 million in the fourth quarter 2006.

Net revenues generated in international markets in the full year 2007 increased 53.3% to RMB1,128.0 million (US$154.6 million) from RMB735.6 million in 2006. Net revenues generated in international markets in the fourth quarter 2007 increased 37.3% to RMB345.5 million (US$47.4 million) from RMB251.6 million in the fourth quarter 2006.

Net revenues generated in Ch)

Share-based compensation (26,054) (58,451) (8,013)

GAAP net income 361,786 591,605 81,102

GAAP net margin 23.9% 26.5% 26.5%

Non-GAAP income per share - basic 4.79 6.32 0.87

Non-GAAP income per share - diluted 4.33 5.95 0.82

GAAP income per share - basic 4.16 5.56 0.76

GAAP income per share - diluted 3.75 5.23 0.72

Shares used in computation of:

Basic earnings per share 87,066,163 106,328,347 106,328,347

Diluted earnings per share 96,370,084 113,011,244 113,011,244

Non-GAAP operating income 419,030 683,831 93,745

Non-GAAP operating margin 27.7% 30.7% 30.7%

Expense/Amortization of acquired

intangible assets (34,121) (18,830) (2,581)

Share-based compensation (26,054) (58,451) (8,013)

GAAP operating income 358,855 606,550 83,151

GAAP operating margin 23.7% 27.2% 27.2%

Non-GAAP gross profit 828,111 1,245,331 170,720

Non-GAAP gross margin 54.7% 55.8% 55.8%

Expense/Amortization of acquired

intangible assets -- (18,830) (2,581)

Share-based compensation (614) (2,023) (277)

GAAP gross profit 827,497 1,224,478 167,861

GAAP gross margin 54.6% 54.9% 54.9%

For investor and media inquiries please contact:

In China:

Investor Relations

May Li

Mindray Medical International Limited

Tel: +86-755-2658-2518

Email: IR@Mindray.com

Justin Knapp

Ogilvy Public Relations Worldwide, Beijing

Tel: +86-10-8520-6556

Email: Justin.Knapp@Ogilvy.com

In the United States:

Jeremy Bridgman

Ogilvy Public Relations Worldwide, New York

Tel: +1-212-880-5363

ina in the full year 2007 increased 41.5% to RMB1,102.9 million (US$151.2 million) from RMB779.4 million in 2006. Net revenues generated in China in the fourth quarter 2007 increased 45.4% to RMB328.3 million (US$45.0 million) from RMB225.8 million in the fourth quarter 2006.

Fourth Quarter Performance by Segment

Patient Monitoring & Life Support Products: Patient monitoring & life support products segment revenues increased 21.0% to RMB228.9 million (US$31.4 million) from RMB189.2 million in the fourth quarter 2006. The patient monitoring & life support products segment contributed 34.5% to total net segment revenues in the fourth quarter 2007.

The patient monitoring & life support products segment contributed 36.2% to full year 2007 total net segment revenues, compared to 40.1% in 2006.

In-Vitro Diagnostic Products: In-vitro diagnostic products segment revenues increased 49.1% to RMB200.2 million (US$27.4 million) from RMB134.3 million in the fourth quarter 2006. The in-vitro diagnostic products segment contributed 30.1% to total net segment revenues in the fourth quarter 2007.

The in-vitro diagnostic products segment contributed 31.2% to full year 2007 total net segment revenues, compared to 29.3% in 2006.

Medical Imaging Systems: Medical imaging systems segment revenues increased 60.0% to RMB224.4 million (US$30.8 million) from RMB140.2 million in the fourth quarter 2006. The medical imaging systems segment contributed 33.8% to total net segment revenues in the fourth quarter 2007.

The medical imaging systems segment contributed 31.1% to full year 2007 total net segment revenues, compared to 29.3% in 2006.

Gross Margins

Full year 2007 gross profit was RMB1,224.5 million (US$167.9 million), a 48.0% increase from RMB827.5 million in 2006. The consolidated gross margin for the full year 2007 was 54.9% compared to 54.6% in 2006. Non-GAAP gross margin, as defined below, was 55.8% in the full year 2007 compared to 54.7% in 2006.

Fourth quarter 2007 gross profit was RMB356.8 million (US$48.9 million), a 38.9% increase from RMB257.0 million in the fourth quarter 2006. The consolidated gross margin for the fourth quarter 2007 was 53.0% compared to 53.8% in the fourth quarter 2006 and 55.1% in the third quarter 2007. Non-GAAP gross margin was 53.8% in the fourth quarter 2007 compared to 53.9% in the fourth quarter 2006 and 56.0% in the third quarter 2007.

Operating Expenses

Selling expenses for the full year 2007 were RMB311.4 million (US$42.7 million), or 14.0% of total net revenues, unchanged from 2006. Selling expenses for the fourth quarter 2007 were RMB99.0 million (US$13.6 million), or 14.7% of total net revenues, compared to 13.1% in the fourth quarter 2006 and 14.5% in the third quarter 2007.

General and administrative expenses for the full year 2007 were RMB91.1 million (US$12.5 million), or 4.1% of total net revenues, compared to 5.0% in 2006. General and administrative expenses for the fourth quarter 2007 were RMB25.9 million (US$3.6 million), or 3.8% of total net revenues, compared to 6.9% in the fourth quarter 2006 and 3.7% in the third quarter 2007.

Research and development expenses for the full year 2007 were RMB215.2 million (US$29.5 million), or 9.6% of total net revenues, compared to 9.8% in 2006. Research and development expenses for the fourth quarter 2007 were RMB68.0 million (US$9.3 million), or 10.1% of total net revenues, compared to 9.6% of total net revenues in the fourth quarter 2006 and 9.9% in the third quarter 2007.

Total share-based compensation expenses, which were allocated to cost of goods sold and related operating expenses, were RMB17.5 million (US$2.4 million) in the fourth quarter 2007, compared to RMB6.5 million in the fourth quarter 2006 and RMB13.3 million in the third quarter 2007.

Full year 2007 non-GAAP operating profit was RMB683.8 million (US$93.8 million) compared to RMB419.0 million in 2006. Full year 2007 GAAP operating profit was RMB606.6 million (US$83.2 million). Non-GAAP operating margins were 30.7% for full year 2007, compared to 27.7% for the full year 2006. GAAP operating margins were 27.2% for full year 2007, compared to 23.7% for the full year 2006.

Non-GAAP operating profit, as defined below, in the fourth quarter 2007 was RMB186.1 million (US$25.5 million), a 49.3% increase from RMB124.7 million in the fourth quarter 2006. GAAP operating profit in the fourth quarter 2007 was RMB163.9 million (US$22.5 million), a 95.1% increase from RMB84.0 million in the fourth quarter 2006. Non-GAAP operating margins were 27.6% in the fourth quarter 2007, compared to 26.1% in the fourth quarter 2006 and 30.1% in the third quarter 2007. GAAP operating margins were 24.3% in the fourth quarter 2007 compared to 17.6% in the fourth quarter 2006 and 27.0% in the third quarter 2007.

Net Income

Full year 2007 non-GAAP net income increased 61.2% year-over-year to RMB672.0 million (US$92.1 million) from RMB416.8 million in 2006. Full year 2007 GAAP net income was RMB591.6 million (US$81.1 million) compared with RMB361.8 million in 2006. Non-GAAP net margins were 30.1% in the full year 2007, compared to 27.5% in 2006. GAAP net margins were 26.5% in the full year 2007 compared to 23.9% in 2006. Full year 2007 income tax expense was RMB106.5 million (US$14.6 million), representing an effective tax rate of 15.3% compared to a 6.1% effective tax rate in the full year 2006.

Fourth quarter 2007 non-GAAP net income increased 31.0% year-over-year to RMB185.4 million (US$25.4 million) from RMB141.5 million in the fourth quarter 2006. Fourth quarter 2007 GAAP net income was RMB157.9 million (US$21.7 million) compared with RMB106.0 million in the fourth quarter 2006. Non-GAAP net margins were 27.5% in the fourth quarter 2007, compared to 29.6% in the fourth quarter 2006 and 30.0% in the third quarter 2007. GAAP net margins were 23.4% in the fourth quarter 2007 compared to 22.2% in the fourth quarter 2006 and 27.0% in the third quarter 2007. Fourth quarter 2007 income tax expense was RMB32.2 million (US$4.4 million), representing an effective tax rate of 16.9% compared to a 4.0% effective tax rate in the fourth quarter 2006.

Full year 2007 basic and diluted non-GAAP earnings per share were RMB6.32 (US$0.87) and RMB5.95 (US$0.82), respectively. Full year 2007 GAAP basic and diluted earnings per share were RMB5.56 (US$0.76) and RMB5.23 (US$0.72), respectively.

Fourth quarter 2007 basic and diluted non-GAAP earnings per share were RMB1.74 (US$0.24) and RMB1.63 (US$0.22), respectively. Fourth quarter 2007 GAAP basic and diluted earnings per share for the quarter were RMB1.48 (US$0.20) and RMB1.39 (US$0.19), respectively. Shares used in the computation of diluted earnings per share increased from 111.6 million in the fourth quarter 2006 to 113.5 million in the fourth quarter 2007 due to issuances of new shares and grants of share options in the past twelve months.

The China Unified Corporate Income Tax Law (the "New Law") became effective on January 1, 2008. The New Law established a single unified 25% income tax rate for most companies with some preferential income tax rates including 15% income tax rate to be applicable to qualified "New and Hi-Tech Enterprises". The related detailed implementation rules and regulations on the definition of various terms and the interpretation and application of the provisions of the New Law were promulgated by the State Council in December 2007. However, the application for "New and Hi-Tech Enterprise" under the New Law is pending for the implementation by the relevant government authorities. Under applicable accounting rules, until the company receives official approval for this status, it must use the transition rule in its calculation of its deferred tax balances, which means a gradual increase in rates over the five-year transition period, that is 18% at 2008, 20% at 2009, 22% at 2010, 24% at 2011 and 25% at 2012. If the company had received the approval prior to December 31, 2007, its full year 2007 net income would have increased by RMB5.9 million using the 15% tax rate for 2008 and onward. The company expects that it will apply for the "New and High-Tech Enterprise" status that will allow it a 15% tax rate for 2008 and onward under China's Unified Enterprise Income Tax Law.

Other Select Data

Average accounts receivable days outstanding was 26 days for full year 2007 compared to 21 days for full year 2006. Inventory turnover was 55 days for full year 2007 compared to 60 days for full year 2006. Average accounts payable days outstanding was 59 days for full year 2007 compared to 56 days for full year 2006.

As of December 31, 2007, the company had RMB1,786.8 million (US$244.9 million) in cash and cash equivalents and short-term investments. Net cash generated from operating activities and capital expenditures for the full year 2007 were RMB708.0 million (US$97.1 million) and RMB350.1 million (US$48.0 million), respectively.

As of December 31, 2007 the company had 3,705 employees compared to 3,541 employees on September 30, 2007.

Dividend Declaration

Mindray's board of directors has declared a cash dividend on its ordinary shares of US$0.18 per share, based on its net income for the full year 2007. The cash dividend will be payable on or around April 24, 2008, to shareholders of record as of March 25, 2008. The company has 106.9 million ordinary shares outstanding as of January 31, 2008.

Business Outlook for Full Year 2008

The company expects its full-year 2008 net revenue guidance to be in the range of RMB3,120 million to RMB3,170 million, representing annual growth of 40% to 42% over full fiscal year 2007.

The company also maintains its full-year 2008 non-GAAP net income guidance range of RMB940 million to RMB954 million, representing annual growth of 40% to 42% over full fiscal year 2007.

Non-GAAP net income per share is expected to be in the range of RMB8.25 to RMB8.37 on a fully diluted basis, assuming an estimated diluted share count of 114 million.

The company estimates its total share-based compensation expenses in 2008 will be approximately RMB70 million based on the employee share options that have been granted as of March 4, 2008. Total expense and/or amortization of intangible assets related to the April 2006 acquisition of minority interest will be approximately RMB18.8 million in 2008.

The company expects its capital expenditure for 2008 to be in the range of RMB700 million to RMB800 million.

The company's practice is to provide guidance on a full year basis only. This forecast reflects Mindray's current and preliminary views, which are subject to change.

Conference Call Information

Mindray's management will hold an earnings conference call at 8:00 PM on March 5, 2008 U.S. Eastern Time (9:00 AM on March 6, 2008 Beijing/Hong Kong Time).

Dial-in details for the earnings conference call are as follows:

Hong Kong: +852-3002-1672

US Toll Free: +1-800-299-9086

International: +1-617-786-2903

Passcode for all regions: Mindray

A replay of the conference call may be accessed by phone at the following numbers until March 16, 2008.

US Toll Free: +1-888-286-8010

International: +1-617-801-6888

Passcode: 91210390

Additionally, a live and archived webcast of this conference call will be available on the Investor Relations section of Mindray's website at http://www.mindray.com .

About Mindray

Mindray Medical International Limited is a leading developer, manufacturer and marketer of medical devices in China with a significant and growing presence worldwide. Established in 1991, Mindray offers a broad range of products across three primary business segments: patient monitoring & life support products, in-vitro diagnostic products, and medical imaging systems. Mindray is headquartered in Shenzhen, China, and has 29 local sales and service offices in China, as well as sales and service offices in Amsterdam, Moscow, Istanbul, London, Mexico City, Mumbai, Sao Paulo, Seattle, Toronto and Vancouver. For more information, please visit http://www.mindray.com .

Use of Non-GAAP Financial Measures

The company has reported for the fourth quarter 2007 and provided estimates for full year 2008 net income, operating income, or earning per share on a non-GAAP basis. Each of the terms as used by the company is defined as follows:
-- Non-GAAP gross profit represents gross profit reported in accordance

with GAAP, adjusted for the effects of share-based compensation, and

expense and/or amortization of acquired intangible assets including.

-- Non-GAAP operating profit represents operating profit reported in

accordance with GAAP, adjusted for the effects of share-based

compensation, and expense and/or amortization of acquired intangible

assets including, but not limited to, in-progress research and

development (IPR&D).

-- Non-GAAP net income represents net income reported in accordance with

GAAP, adjusted for the effects of share-based compensation, and expense

and/or amortization of acquired intangible assets including, but not

limited to, IPR&D, all net of related tax impact.

-- Non-GAAP earnings per share represents non-GAAP net income divided by

the number of shares used in computing basic and diluted earnings per

share in accordance with GAAP, and excludes the impact of the deemed

dividends for the basic calculation.

In addition to Mindray's consolidated financial results under GAAP, the company als
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SOURCE Mindray Medical International Limited
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