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Winner Medical Reports Fourth Quarter and Full Year Fiscal 2008 Results
Date:12/9/2008

we are pleased to be able to meet the top end of our revenue expectations, reporting roughly $85.51 million in total sales revenue for the quarter. Our performance was supported by stable and strong growth in the export markets for our traditional medical care, wound care and home care products.

"In the fourth quarter, our record sales growth was the result of successful execution of our initiative to boost sales to large customers in the US and Europe. Our ability to enhance production efficiency and implement stringent cost controls also allowed us to stabilize our gross margin and profit, despite the negative effect of foreign currency exchange rate fluctuations and rising labor costs," he continued.

"Our PurCotton products performed solidly, with total sales of $1.36 million in the fiscal year of 2008. We will further strengthen marketing efforts for PurCotton and we believe the growing sales of this new product will be a complementary growth driver to our traditional products over the mid- to long-term.

"We believe the year ahead will inevitably be even more challenging, as the global economic outlook has worsened and we expect these conditions to continue. In view of the difficult business environment, we have set four strategic priorities to sustain our revenue, profitability and balance sheet. First, we will implement even more stringent cost control measures to optimize production efficiency and reduce controllable expenses, such as facilities expenses, by 10%. Second, we will invest to develop domestic market in China. Third, we will continue our ongoing strategy to deepen our relationships with our major US, Europe and Japanese customers to maintain stable order growth. Fourth, we will maintain our solid cash position.

"Further, we believe that the PRC government's plan to stimulate domestic consumption and economic growth will benefit us in three aspects. The tax refor
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SOURCE Winner Medical Group Inc.
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