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Winner To Establish Sales Channels

November 19, 2009

PurCotton branded products to be sold in chain stores.

Winner Medical Group Inc. is launching its company-owned PurCotton branded products and to construct sales channels in China. PurCotton is a 100% cotton nonwoven material, for which the Chinese company has its unique patented manufacturing technology. It is comfortable, safeand healthy, which makes it ideal for medical, healthcare, and daily home care products. The company will develop finished functional products made by PurCotton and plans to launch these products mainly through company-owned PurCotton concept chain stores.

The high profile chain stores will be located in densely populated commercial and residential communities with high visibility and foot traffic. Stores will cater to such consumers who prefer high-quality products made from Winner Medical’s PurCotton. Each store will contain a broad range of PurCotton branded personal products and healthcare supplies. Stores will be staffed by a total of eight to 10 employees running two shifts. The total projected cost to open each initial pilot store will be approximately $80,000 to $100,000, including securing the lease, build-out and inventory stocking.

Winner Medical expects to open its first two or three stores in Shenzhen by January 2010. If the operating metrics of the stores show feasibility, the mid-term plan will be to launch the company’s own stores or joint ventures in several geographic areas.

Jianquan Li , chairman and chief executive officer of Winner Medical, said, "We are extremely pleased to announce this initiative which underscores our strategy to significantly grow our domestic China business focused on higher margin PurCotton branded products. We will be the first to market with a concept store specifically focused on offering customers a broad range of disposable, daily use products which will simplify their shopping experience. We will prudently manage this marketing strategy while controlling investment risks through staged store openings.

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