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Winner Medical Reports Third Quarter Fiscal 2011 Results
Date:8/10/2011

y financial instruments of $1.7 million and $Nil, respectively. Please see the "Non-GAAP Financial Measures" section below for information on how non-GAAP measures should be viewed in comparison to GAAP measures.Mr. Jianquan Li, chairman and chief executive officer of Winner Medical, commented: "the strong sales increase in Japan, Europe and North and South America, especially in Brazil, reflects customers' recognition of our quality products and timely delivery service, as well as deeper penetration into various regions around the globe. In addition, during the third quarter of fiscal year 2011, sales of our PurCotton® products rapidly increased, as we continued to have success expanding distribution channels in China and as more Chinese consumers become aware of and use our products."

Mr. Li continued, "Despite pressure brought on by rising cotton prices , we still managed to grow gross profit dollars while minimizing cost pressure on gross margins. We will continue to adjust our business portfolio to carry higher gross margin products and reduce costs where appropriate to offset renminbi appreciation, inflation as well as raw material price fluctuation."

Third Quarter 2011 Unaudited Financial ResultsWinner Medical reported net sales of $41.5 million, an increase of 34% as compared to the same period last year, due to higher pricing and strong reorders of medical and PurCotton products. Sales increased 52% year-over-year in China to $9.0 million, driven by increased sales of PurCotton products. Sales to Europe remained strong year-over-year at $16.1 million, a 30% increase compared to the same period last year, reflecting the Company's continuing effort to maintain existing customers and add new customers. Exports to Japan grew 47% as a result of larger orders and higher selling prices. Sales to North and South America remained steady, increasing 19% year-over-year to $7.5 million, which is notable for an increase in orders from Brazil
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SOURCE Winner Medical Group Inc.
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