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

sed by 20.72% to $14.44 million in the fiscal year 2008, from $11.96 million in the fiscal year 2007. During fiscal year 2008, Winner Medical made an incremental sales and marketing investment in its PurCotton(TM) product line. Increased administrative expenses are largely a result of expenses related to the grant of 1 million shares of restricted stock to the Company's management and employees, increased administrative expenses for the Winner Huanggang factory, and the administrative expenses related to the implementation of a Sarbanes-Oxley 404 compliance project in January 2008.

Operating Income: Operating income for the fiscal year of 2008 was $6.02 million, an increase of 3.45% from $5.82 million in the same period of fiscal year 2007. The increase was mainly attributable to the increase of gross profit margin and sales revenue.

Income Taxes: The income tax provision for the fiscal year 2008 was $591,000, down from ($15,000) in the same period in 2007. The increased tax provision was mainly due to a change in the tax rate for the Company's subsidiaries in China as the result of Chinese Income Tax reform that went into effect on January 1, 2008.

Net income: For the fiscal year ended September 30, 2008, net income decreased by 9.93% to $5.07 million, or $0.11 per basic and diluted share, compared to net income of $5.63 million, or $0.13 per basic and diluted share, for the fiscal year 2007. The net income decrease is mainly attributable to the high fixed expenses related to the commencement of trial production of PurCotton in the new Winner Huanggang factory, which include depreciation, amortization, employee salary and training expenses, and resulted in a net loss of approximately $1.20 million for the fiscal year 2008. There was also an increase of approximately $956,000 in foreign exchange loss compared with the same period last year. The Company granted 911,500 shares of restricted stoc
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SOURCE Winner Medical Group Inc.
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