Dehaier exhibits entire product line at China International Medical Equipment Fair

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 on October 12, 2010, Dehaier exhibited its entire product line at the China International Medical Equipment Fair ("CMEF") held in Shenyang.

CMEF is the largest exhibition of medical equipment and related products and services in the Asia-Pacific region and is held twice a year. The exhibition covers tens of thousands of products, such as medical imaging, in vitro diagnosis, electronics, optics, first aid, rehabilitation nursing, medical information technology, and outsourcing services to the entire medical industry. The Spring 2010 CMEF exhibition in Shenzhen attracted participants from over 2,000 medical equipment producers representing more than 20 countries, as well as more than 65,000 visitors including government purchasers, procurement specialists from hospitals, and distributors from more than 100 countries.

At its exhibition booth, Dehaier promoted its latest self-branded homecare products across eight different series, including CPAP devices, oxygen generators, and screening and diagnosis products. Dehaier also displayed various types of high-quality products for which it acts as a distributor, including products used in homecare, medical, and technical services.

Mr. Ping Chen, CEO of Dehaier, stated, "Attending CMEF, the largest gathering of medical equipment companies and professionals in the Asia-Pacific region, created an ideal platform to promote our brand image and an outstanding venue for cooperation and academic exchange. Dehaier entertained and negotiated with over 1,000 clients at our show desk during the first day of the exhibition. Out of all of our product portfolios, Personalized Homecare Products and our Customer Experience Center concept were the most popular. We believe the exhibition in Shenyang will emphasize our strategy in developing our medical business, which will create new opportunities for our company."

Mr. Chen continued, "We are very pleased to announce that during the first exhibition day, we received Initial Indication Letters for procurement agreements with over 10 distributors. Based on our historical results in moving from non-binding indications of interest into actual purchase orders, we expect that we may generate more than $1.2 million in sales from these distributors. Based on our strong financial performance so far this year, as well as the enthusiastic response we've had already at the exhibition, we look forward to continued growth in our business over the remainder of the year."

In the first six months of fiscal 2010, Dehaier generated $7.5 million in revenues, an increase of 28% from the first half of fiscal 2009. Sales for the second quarter ended June 30, 2010 were $4.8 million, up 46% from the previous year. Dehaier also generated $1.7 million in net income for the first six months of 2010, a 55% increase from the same period in 2009. Net income for the second quarter was $1.1 million, up 59% from the second quarter of 2009.