Winner Medical Group Inc. Successfully Completes Second Phase of ERP Project

2006-11-29 11:16 1366

- 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

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.

Source: Winner Medical Group Inc.
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