China Medical Technologies and the Chinese Academy of Sciences Institute of Acoustics Establish a Medical Research Laboratory to Develop Acoustic Medical Devices.
Under the terms of the agreement, China Medical will be responsible for all of the development costs and will in turn retain the intellectual property rights relating to these products. The Company expects to fund the laboratory on a project basis over the 10-year period. The potential and feasibility of each project will be thoroughly and cautiously assessed by the Company together with the Institute. The related budget of each project will be examined prior to entering into any capital commitments.
As a well-established research institution in China, the Institute has been engaged in a vast number of national research projects in acoustic and signal information analysis, and ultrasonic and linguistic acoustics since its founding in 1964. Its key achievements include over 400 established research results and over 300 national winning awards on the related subjects. This collaboration is expected to also help strengthen the Institute's position in academic and clinical studies.
"We believe that this synergistic collaboration is an excellent strategy for the Company and underscores our commitment to broaden the scope of our acoustic and ultrasound technologies," said Mr. Xiaodong Wu, Chairman and CEO. "We are encouraged by the many mutual benefits that this collaboration provides and believe that acoustic medical products have great potential to further improve the quality of human lives. Overall, we think this is a great opportunity for us to broaden and diversify our product offering in the medical device market in China while remaining firmly in an area that we know well, with partners we trust. We are now actively assessing the potential of a number of acoustic projects with the Institute, and we will continue to search for other opportunities in the market that will allow us to follow through on our stated goal of becoming the leading medical device company in China."
Leveraging the existing acoustic technology and expertise of the Institute, China Medical aims to develop affordable acoustic medical devices that address the needs of patients, and the vast and untapped market potential that exists in China. The Company believes that its proven track record of developing high quality medical devices, strong distribution network, and well established commitment to controlling costs will allow the Company to benefit from the research and development of these innovations. The Company looks forward to disclosing specific product development plans once a thorough assessment has been completed.
About China Medical Technologies
China Medical Technologies is a leading China-based medical device company that develops, manufactures and markets products using high intensity focused ultrasound for the treatment of solid cancers and benign tumors and advanced in-vitro diagnostics products using enhanced chemiluminescence technology, to detect and monitor various diseases and disorders. For more information, please visit our website at www.chinameditech.com.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "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, 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 "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the Company's expectation and strategy with respect to researching and developing the above mentioned acoustic medical devices with collaboration of the Institute contains 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 China Medical's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. China Medical 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.
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|Date:||Nov 6, 2006|
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