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

k to its management and employees pursuant to the Company's stock incentive plan approved on October 7, 2007; the portion of expenses attributable to such grants for the nine months ended June 30, 2008 was approximately $382,000. In addition, there was a $606,000 increase in income taxes due to a change in the tax rate in our subsidiaries in China.

Balance Sheet

Cash and cash equivalents as of September 30, 2008 was approximately $6.46 million; compared with $6.38 million as of September 30, 2007. The Company's working capital as of September 30, 2008 was $12.37 million compared with $12.37 million of last year. Net operating cash flow as of September 30, 2008 was $9.77 million, an increase of 27.55 % compared with the fiscal year of 2007.

Fourth Quarter 2008 Operational Highlights

Medical care, Wound care and Home care products in Export Markets

North and South America -- Revenue from customers in the North and South America was approximately $3.99 million for the three months ended September 30, 2008, an increase of 84.05% compared to the same period last year. North and South America accounted for 15.83% of total revenue for the three months ended September 30, 2008. The Company has been gradually shifting resources and services to focus on the larger-sized customer segment and successfully attained a higher order volume from existing customers, especially in the United States. As a result, it expects revenue from these larger customers to increase in the future.

Europe -- Revenue from European customers was approximately $40.58 million for the fiscal year 2008, an increase of 31.04% compared to the same period last year. Europe accounted for 47.46% of total revenue for the fiscal year ended September 30, 2008, respectively. The Company has adopted the same strategy in Europe as it has in the Americas: gradually shifting resources and services to focus on
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SOURCE Winner Medical Group Inc.
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