- SAP ERP System Will Facilitate Compliance with Sarbanes-Oxley as Well as
Help to Better Manage Future Growth -
SHENZHEN, China, Nov. 28 /Xinhua-PRNewswire/ -- Winner Medical Group
Inc., "Winner Medical" (OTC Bulletin Board: WMDG), has successfully completed
the second phase of its Enterprise Resource Planning ("ERP") project, and the
SAP ERP system is now fully implemented and operating throughout Winner
Medical and its subsidiaries.
The Winner Medical ERP Project formally commenced in January 2006, with
Phase I of the project focused on effectively implementing a SAP ERP system
at the Winner Medical headquarters in Shenzhen. Phase I was completed in
June 2006 and the system has run smoothly since inception. Phase II of the
project commenced in July 2006 with the goal of implementingthe ERP system
throughout Winner Medical and its subsidiaries. This phase was completed
earlier this month and is functioning well.
"Winner Medical selected the SAP ERP system because of its technical
supremacy and ability to seamlessly integrate all of the core business
operations of each of our subsidiaries -- from production to supply to sales
and finally to financial records -- into one system," said Jianquan Li, Chief
Executive Officer. "It has proven to be an effective and efficient solution
for managing and improving our internal controls and corporate governance.
We believe the SAP ERP system will not only enable us to better comply with
Sarbanes-Oxley regulations, but also help us to manage future growth and
maintain our competitive advantage.
"To ensure a smooth and timely implementation of the SAP ERP system,
Winner Medical engaged IBM consultants to manage the process. Their deep
knowledge of business processes and wealth of experience in resolving
problems in the area of business and systems integration has proven
invaluable," concluded Mr. Li.
Winner Medical has commenced Phase III of the project to implement the
key components of the SAP ERP system in order to better manage internal
controls and facilitate compliance with Section 404 of the Sarbanes-Oxley Act
of 2002. When completed, the SAP ERP system will enable Winner Medical
management to accurately assess and report, on an annual basis, as to the
effectiveness of Winner Medical's internal controls for financial reporting
and enable external auditors to confirm management's assessment.
To date, Winner Medical has invested approximately $2.4 million on the
implementation of the SAP ERP system throughout all its companies. This
investment includes the cost of the IBM consultants, the purchase of the SAP
system implementation program, the purchase of IBM servers and other
machinery and the labor cost of more than 30 full time employees.
About Winner Medical Group Inc.
Winner Medical is a holding company comprised of nine wholly owned
manufacturing and distribution facilities, two joint venture factories and
one trading company. Winner Medical is primarily engaged in the development,
manufacturing and distribution of high-quality cotton disposable medical
dressings and disposable products. Winner Medical's products include
surgical dressings, dressing packs, wound care dressings, protective
products, medical instruments, dental products and hygiene products for the
institutional and home care markets. Winner Medical products are
manufactured in China and sold domestically and abroad, in areas such as
Japan, Germany, Italy, the Netherlands, France, the United States, South
America, Africa and the Middle East. The company is one of very few Chinese
companies licensed by the U.S. Food and Drug Administration to ship finished,
sterilized products directly to the US market. To learn more about Winner
Medical, visit the company's web site http://www.winnermedical.com.
Forward-Looking Statements
This press release contains certain statements that may include "forward
looking statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. All statements, other than statements of historical fact
included herein are "forward-looking statements" including statements
regarding Winner Medical and its subsidiary companies' business strategy,
plans and objective and statements of non-historical information. These
forward looking statements are often identified by the use of forward-looking
terminology such as "believes," "expects" or similar expressions, involve
known and unknown risks and uncertainties. Although Winner Medical believes
that the expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties, and these
expectations may prove to be incorrect. You should not place undue reliance
on these forward-looking statements, which speak only as of the date of this
press release. Winner Medical's actual results could differ materially from
those anticipated in these forward-looking statements as a result of a
variety of factors, including those discussed in Winner Medical's periodic
reports that are filed with and available from the Securities and Exchange
Commission. All forward-looking statements attributable to Winner Medical or
persons acting on its behalf are expressly qualified in their entirety by
these factors. Other than as required under the securities laws, Winner
Medical does not assume a duty to update these forward-looking statements.