China Medical Technologies Announces Strategic Collaboration Between its Subsidiary, GP Medical, and Da An Health

BEIJING, June 22, 2011 /PRNewswire-Asia-FirstCall/ -- China Medical Technologies, Inc. (the "Company") (Nasdaq: CMED), a leading China-based advanced in-vitro diagnostic ("IVD") company, today announced that its wholly-owned subsidiary, Beijing GP Medical Technologies Co., Ltd. ("GP Medical"), has entered into a strategic collaboration with Gaoxin Da An Healthcare Investment Ltd. ("Da An Health") to co-market and promote molecular diagnostic technologies for clinical diagnostic applications in China. The two parties will also work together to develop new molecular diagnostic products to cater for Da An Health's hospital customers and leverage Da An Health's independent laboratory network for new product validation.

Under the agreement, GP Medical and Da An Health will promote and offer the use of GP Medical's molecular diagnostic products to the customer base of Da An Health. As a result, GP Medical's existing direct sales network covering large hospitals will be expanded to the customer network of Da An Health covering some of the large hospitals that GP Medical did not cover, and large number of mid and small-sized hospitals as well as community hospitals through this strategic collaboration. In addition, the two parties will jointly develop innovative molecular diagnostic product packages or solutions to offer to Da An Health hospital customers. The new product packages or solutions will be validated at the independent laboratories of Da An Health. During the term of the collaboration, the two parties can expand the scope from the molecular diagnostic products to the full product lines of GP Medical and its affiliates in the future.

"We are pleased to establish this strategic collaboration with Da An Health," commented Mr. Xiaodong Wu, Chairman and Chief Executive Officer of the Company. "We believe this collaboration will promote our brand name as well as product awareness to a new customer base through Da An Health.  We can also get ideas of the hospital demand from this collaboration to prioritize our product development to support our sustainable growth in the future."

"We are excited to become a strategic partner of GP Medical," commented Mr. Yong Zhang, Chief Executive Officer of Da An Health. "Molecular diagnostic market in China has huge potential to grow. Our ability to serve and reach a large number of healthcare institutions which brings each individual hospital demand to a large test volume, complement with GP Medical's outstanding molecular diagnostic product portfolio. Working together, we can better serve a larger number of healthcare institutions in China."

About Gaoxin Da An Healthcare Investment Ltd.

Gaoxin Da An Healthcare Investment Ltd. is a China-based leading company engaged in clinical diagnostic testing services and independent laboratory service network in China. With eight clinical test centers serving thousands of hospitals ranging from Tier 1 to Tier 3 as well as community hospitals, Da An Health has one of the largest independent laboratory service networks in China, offering healthcare screening, diagnostic testing and related services. For more information, please visit http://www.daanhealth.com

About China Medical Technologies, Inc.

China Medical Technologies, Inc. is a leading China-based advanced IVD company using molecular diagnostic technologies including Fluorescent in situ Hybridization (FISH) and Surface Plasmon Resonance (SPR) and an immunodiagnostic technology, Enhanced Chemiluminescence Immunoassay (ECLIA), to develop, manufacture and distribute diagnostic products used for the detection of various cancers, diseases and disorders as well as companion diagnostic tests for targeted cancer drugs. The Company generates all of its revenues in China through the sale of diagnostic consumables including FISH probes, SPR-based DNA chips and ECLIA reagent kits to hospitals which are recurring users of the consumables for their patients. The Company sells FISH probes and SPR chips to large hospitals through its direct sales personnel and ECLIA reagent kits to small and mid-size hospitals through distributors. For more information, please visit http://www.chinameditech.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations in this press release contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

SOURCE China Medical Technologies, Inc.

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