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

m implemented this year will lower our VAT tax and export tax for certain of our products. The central bank's decision to cut interest rates will reduce our interest expenses. Finally, investments to develop the primary medical care and healthcare services system in urban and rural areas will benefit our domestic sales," Mr. Li concluded.

Fourth Quarter 2008 Unaudited Financial Results

Revenue: Winner Medical reported net sales revenue of $25.22 million, a 17.24% increase over the fourth quarter of fiscal 2007. Healthy revenue growth was mainly due to strong demand, particularly in the U.S.; revenue from the U.S. was approximately $3.99 million for the fourth quarter of fiscal 2008, an increase of 84.05% compared to the same period last year. The U.S. market accounted for 15.83% of total revenue for the quarter ended September 30, 2008.

Gross Profit: For the fourth quarter of fiscal 2008, gross profit was $6.69 million, an increase of 17.09% over $5.71 million in the same period of fiscal 2007. Gross margin was 26.52%, versus 26.56% achieved in the fourth quarter of fiscal 2007. The slight decline in gross margin was mainly due to increased raw materials costs.

Operating Expenses: Selling, general and administrative expenses decreased by 8.98% to $3.86 million in the fourth quarter of fiscal 2008, from $4.24 million in the fourth quarter of fiscal 2007. During this quarter, the decrease in the operating expenses was mainly due to lower transportation fees for exports.

Operating Income: During the period, operating income was $2.14 million, an increase of 35.44% compared with $1.58 million of same quarter of 2007. The increase was mainly attributed to decreased export transportation fees and economies of scale related to higher sales revenue.

Income Taxes: The income tax provision for the three months ended September 30, 2008 was $478,000, up from $88,000 f
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SOURCE Winner Medical Group Inc.
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