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Dehaier Opens First Oxygen Filling Facility and First Service Center for Home Oxygen Therapy Service in Beijing
Date:7/18/2011

BEIJING, July 18, 2011 /PRNewswire-Asia-FirstCall/ -- Dehaier Medical Systems Ltd. (Nasdaq: DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced the opening of its first oxygen filling facility and first service center for home oxygen therapy service in Beijing, China. These facilities were opened as part of Dehaier's previously announced strategic alliance with Shanghai Taiyo Nippon Sanso Shenwei (Shanghai) Medical Gas Co., Ltd ("Taiyo-Shanghai") and Beijing Orient Medical Gas Co., Ltd ("Beijing Orient").

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In April 2011, through a cooperation agreement with Taiyo-Shanghai and Beijing Orient, Dehaier introduced a home oxygen therapy service to develop distribution channels and increase the availability of home oxygen therapy services in Beijing, with plans to expand into other strategic markets over time. The service center in Beijing's Haidian District provides the equipment necessary for home oxygen therapy service, while also giving individual customers an opportunity to experience Dehaier's homecare products, including sleep and respiratory products such as oxygen concentrators, CPAP machines, and sleep diagnostic equipment.

"Introducing the filling facility and opening the service center represent a major milestone in our home oxygen service program," said Mr. Ping Chen, Chief Executive Officer of Dehaier. "After securing insurance coverage for oxygen therapy products in Shanghai, our partner Taiyo-Shanghai has grown its local market share to over 90%. We believe that Beijing presents a sizeable market opportunity as well, as a result of both the city's aging population and the lack of a standard service, delivery and support platform."

"Under China's 12th Five Year Plan, there are a number of government initiatives designed to accelerate the development of medical homecare, giving us a great deal of confidence about the growth potential of our home oxygen service program. Through our new oxygen service offering, we are not only introducing a standardized product and service to the market, but we have also joined the lobbying effort aimed at securing insurance coverage for home oxygen therapy services in Beijing. We are confident in our ability to duplicate our model in other cities in China, to address this market growth and build shareholder value," Mr. Chen concluded.

About Dehaier Medical Systems Ltd.Dehaier 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), eVent Medical (US) and JMS (Japan). Dehaier's technology is based on five patents, five software copyrights, three pending patents, six pending software copyrights, and proprietary technology. More information may be found at http://www.chinadhr.com.

Forward-looking StatementsThis news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.Contact UsIn the US:The Piacente Group, Inc.Investor RelationsBrandi Floberg or Lee Roth+1-212-481-2050dehaier@tpg-ir.com In China:The Piacente Group, Inc.Investor RelationsWendy Sun+86-10-6590-7991dehaier@tpg-ir.com Dehaier Medical Systems LimitedRita LiuCFO+86-10-8844-5026liuz@dehaier.com.cn
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SOURCE Dehaier Medical Systems Ltd.
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