Beijing Kanglian, Dehaier sign cooperation agreement for rural healthcare project

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 that it has signed a cooperation agreement with Beijing Kanglian Medicines Co, Ltd ("Beijing Kanglian"), to develop, operate and implement for a new rural healthcare construction project in Hunan and Anhui provinces. The project is supported by China Development Bank Corp ("CDB"), one of China's three national policy banks.

In conjunction with the State Council's "Agriculture, Farmer and Village" policy, which is aimed at improving rural living conditions, CDB has earmarked approximately $1.5 billion in loans each year since 2007 for the implementation of national rural healthcare initiatives and upgrade of medical institutions in nearly 2,900 counties, cities and districts across China. A key objective of this project is the development of new medical facilities in areas lacking adequate healthcare infrastructure.

"We are proud to have been selected for a project of such magnitude, that has the support of an institution as prominent as CDB. The continued development of China's healthcare system is critical to our country's future, and we believe that this program is an important step forward. We are pleased that, through our experienced professionals, and leading sales and support capabilities, we can contribute to this important national initiative," said Mr. Ping Chen, CEO of Dehaier. "China's government has placed a major emphasis on the improvement of rural healthcare infrastructure through the establishment of basic medical facilities in each county and township, creating a tremendous growth opportunity in rural China. Our portfolio includes high quality products at a variety of price points, including products that fit the project requirements for more economical facilities. We are confident that these government policies and nationwide programs will help create new opportunities for Dehaier to grow sales as we work to expand our business and deliver our healthcare solutions across China."