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Winner Medical Reports Third Quarter Fiscal 2012 Results
Date:8/9/2012

f fiscal 2011.

Gain from commodity derivatives was approximately $93,000 on cotton futures products in the third quarter of fiscal 2012 compared to approximately $65,000 in the same quarter of the previous fiscal year. This modest increase in gain resulted from implementation of more stringent trading policies and process controls since the establishment of the Company's Commodity Trading Center in July 2011.

Foreign exchange gains for the three months ended June 30, 2012 increased approximately $471,000 to approximately $200,000, from a loss of $271,000 for the same period of the previous fiscal year. The increase in gains was mainly due to the Company's involvement in foreign trades with international customers, the majority of which were settled in U.S. Dollars. On June 30, 2012 and April 1, 2012, the exchange rates of the RMB against the U.S. Dollar were 6.3249 and 6.3035, respectively; the depreciation of the RMB against the U.S. Dollar by 0.34% resulted in exchange gains for the three months ended June 30, 2012.

In order to minimize currency exchange risk, the Company has been reinforcing and expanding its business in China market and inserting clauses into contracts stipulating that the selling price is subject to the fluctuation of currency and the price of raw materials.

Selling, general and administrative expenses increased by 45.0% to $10.6 million in the third quarter of fiscal 2012 from $7.3 million in the same quarter of the previous fiscal year. As a percentage of total sales, SG&A expenses were 22.0% and 17.6% for the third quarter of fiscal 2012 and 2011, respectively. The increase in selling, general and administrative expenses resulted from increases in expenses related to the Company's going private transaction, salary, leasing expenses, domestic transportation expenses and advertising fees, as well as new product sales fees for PurCotton® retail products.

Interest expenses decreased to approximately $
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SOURCE Winner Medical Group Inc.
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