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China Medical Technologies Reports First Quarter Financial Results
Date:8/28/2007

ed the revenue for HIFU business for the first time," commented Mr. Xiaodong Wu, Chairman and CEO of the Company. "Going forward, we expect the seasonality of our HIFU business to have less impact on our results of operations and we will continue to benefit from the recurring nature of our IVD businesses including our ECLIA reagent business and our FISH probe business. We have successfully launched our FISH products and received very positive responses from many leading hospitals in the PRC. We believe our FISH business, in addition to our ECLIA business will become another major driver for our future growth."

1Q FY2007 Financial Results

The Company reported net revenues of RMB151.5 million (US$19.9 million) for 1Q FY2007, representing a 66.6% increase from the corresponding period of FY2006.

The Company's revenues are currently generated from three product lines, ECLIA diagnostic systems, FISH diagnostic systems and HIFU tumor therapy systems. ECLIA system sales include the sales of ECLIA analyzers and reagent kits. FISH system sales include the sales of FISH equipment and probes.

ECLIA system sales for 1Q FY2007 were RMB79.1 million (US$10.4 million), representing an 84.7% increase from the corresponding period of FY2006. The strong year-over-year growth in the ECLIA system sales reflected the increasing utilization of ECLIA analyzers by hospitals which drove increasing demand for reagent kits.

FISH system sales for 1Q FY2007 were RMB14.4 million (US$1.9 million) upon the launch of our FISH systems in this quarter. The sales represented only sales of equipment where sales of probes are expected in September quarter.

HIFU tumor therapy system sales for 1Q FY2007 were RMB58.0 million (US$7.6 million), representing a 20.5% increase from the corresponding period of FY2006. The year-over-year growth in this sector was driven primarily by increases in unit sales and selling price. Due to seasonality, first fiscal quarter is typically
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SOURCE China Medical Technologies, Inc.
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