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

lear growth strategy, we are optimistic about Dehaier Medical's continued success throughout 2011 and well into the future.

The overall healthcare market in China has grown significantly in recent years, with increasing awareness of health issues creating demand for improved infrastructure and higher levels of medical care in both urban and rural areas. We believe our cooperation with China Development Bank on rural medical care will generate more opportunities to grow our presence and build our reputation, particularly in the country's underdeveloped areas, where the need for products such as ours is greatest.

Additionally, last week, we announced a strategic cooperation agreement with Taiyo Nippon Sanso Shenwei (Shanghai) and Beijing Orient, two major medical gas providers in the global and Chinese market, to develop home oxygen therapy service in Beijing. We believe this cooperation will further solidify our market position in product and service offering.

We expect these initiatives, coupled with the successful execution of our growth strategy, will drive continued financial and operational growth, and enhance value for shareholders. On behalf of the entire Dehaier family, thank you for sharing in our success to date and being a partner in our future.

Best Regards,Ping Chen,Chairman, Chief Executive OfficerAbout Dehaier Medical Systems Ltd.Dehaier Medical Systems is an emerging leader in the development, assembly, marketing and sale of medical products in China, including respiratory and oxygen homecare medical products. The company develops and assembles its own branded medical devices and homecare medical products from third-party components. The company also distributes products designed and manufactured by other companies, including medical devices from IMD (Italy), Welch Allyn (USA), HEYER (Germany), Timesco (UK), ResMed (Australia), eVent Medical (US), JMS (Japan) and eVent. Dehaier's technology is based on two patents, six p
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