Preliminary fourth-quarter 2009 financial results from Winner Medical

Winner Medical Group Inc. (Amex: WWIN; "Winner Medical", or the "Company"), today reported preliminary financial results for the fourth quarter 2009. The unaudited numbers are subject to change.

Fourth quarter fiscal 2009 preliminary results: -- Sales revenue increased by 9.72% to $27.67 million vs. Q4 2008 -- Net income increased by 72.24% to $2.75 million vs. Q4 2008 -- Chinese market sales increased by 123.40% to $5.10 million vs. Q4 2008 -- PurCotton product sales increased 91.33% to $2.31 million from Q3 fiscal 2009

"During the fourth quarter, we delivered solid improvements in revenue and robust growth in profits. Increased volume of large sales orders from North and South American customers, market share gains in China with branded products, and rapid growth in sales of our PurCotton product line benefitted both the top line and the significant margin expansion," Mr. Jianquan Li, Chairman and Chief Executive Officer of Winner Medical, commented.

"By leveraging our diversified line of high quality products with improved production efficiencies, Winner Medical is well-positioned to drive incremental growth and profitability during 2010 from both the international and domestic markets. Disposable products create a recurring revenue stream and our cash flow and strong working capital position will enable us to further expand our PurCotton production capabilities to capitalize on the market demand.

China Medical Market Business Update:

Preliminary sales revenue to customers in China was $5.10 million, representing a 123.40% increase over the fourth quarter of fiscal year 2008. The Company has been intently focused on building its own brand in China, which is gaining market acceptance among customers and end users, while driving growth. In April 2009, "Winner" was recognized by the Chinese State Administration for Industry and Commerce as a well-known trademark. Results also benefitted from increased demand for face masks and protective gowns as a result of H1N1 flu in China.

The Company's sales channel in China includes: hospitals, local distributors, and over-the-counter (OTC), drugstore chains. To date, the Company has entered hospitals in major cities including Beijing, Shanghai, Shenzhen, Guangzhou, Wuhan, Chengdu, and Fujian, as well as large adjacent cities. In addition, the Company has sold products to 7 out of the top 10 drugstores chains in China, which have a combined network of approximately 2,000 stores across the country, and represent an important customer segment.

The Company attended the 62nd China International Medical Equipment Fair ("CMEF") in Chengdu, China, which was held October 28 - 31. Winner Medical reached the majority of its existing clients in China who have indicated their intentions to expand our business relationship. These companies include such well known names as China National Pharmaceutical Group Corporation, the largest pharmaceutical group company in China and Kelun Pharmaceutical, one of the largest professional manufacturers of IV solutions in the world. In order to further establish the Winner brand name and gain additional market share, the Company participated in a production promotion with West China Hospital.

PurCotton:

In the fourth quarter of fiscal 2009, the Company's PurCotton sales grew rapidly. Preliminary sales revenue of $2.31 million represents a 91.33% increase over the $1.21 million recorded during the third quarter of fiscal 2009. PurCotton jumble rolls were sold to customers in China, the U.S., Europe and Japan who produce consumer products, including sanitary and incontinence products. The Company is also processing orders of PurCotton finished medical products, such as operating room towels and sponges, for customers in North America and Europe.

Winner Medical's joint venture, Winner Medical (Hong Kong) Ltd, or "Winner Hong Kong" was awarded the "Certificate of Merit" of the HSBC Living Business Awards 2009, which recognized the Company's PurCotton as an eco-material product for customers and the community, while establishing a better eco-mindset within the workforce.

Looking forward, the Company is marketing its own branded PurCotton consumer and home care products in China, such as wipes, baby products, feminine products and other hygiene products. Therefore, the Company is confident in its mid to long-term growth potential.