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Dehaier Medical Chairman and CEO Issues Letter to Shareholders
Date:4/25/2011

s that give us a great deal of confidence in our ability to build on our record 2010 results with an even stronger 2011.  

Product Portfolio Growth for Distinct End MarketsOur performance in 2010 was the result of strong growth in both our branded and third party medical devices, as well as the continued emergence of our homecare products. The breadth of our product portfolio allows us to address the needs of two fast-growing segments of the market, each with unique but significant growth catalysts.

The professional medical device market, where we offer both branded and third-party products such as anesthesia machines, C-arm X-ray equipment and respiratory therapy equipment, is experiencing tremendous growth as a result of China's New Medical Reform Plan and 12th Five Year Plan, both of which provide for significant government capital investments to improve the quality and availability of healthcare nationwide. The goal of these programs and investments is to give Chinese citizens greater, more cost effective access to high-quality, professional care, regardless of location or financial resources.

Our products and the third party products we distribute are becoming more widely adopted by hospitals, health centers and clinics thanks in part to increased government funding. In order to build our position in this market, we focused throughout 2010 on expanding our network of dealers and distributors and relationships with medical centers. These efforts increased awareness of the products we offer, both directly and as a distributor.

The continued growth of our footprint in the Chinese market has brought Dehaier attention from leading global medical device manufacturers, and in 2010 we expanded our third party device portfolio through exclusive distribution agreements for HEYER Medical's respiratory products and two of Welch Allyn's patient monitors, the Propaq® CS and the Atlas™.

In addition to the growth o
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SOURCE Dehaier Medical Systems Ltd.
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