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Weigao announces 2007 Third Quarter Results
Net Profit Attributable to Shareholders Surged 75.6%

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Actively Optimizing Product Mix Accelerating International Collaborations Striving to Increase the Group’s Overall Profitability

Financial Highlights:
RMB(million) / For the nine months ended 30 September 2007(Unaudited) / 2006(Unaudited) / Change (%)
Turnover / 777.4 / 568.1 / 36.8%
Gross profit / 343.1 / 242.6 / 41.4%
Profit attributable to equity holders of the Company / 198.6 / 113.1 / 75.6%
Basic earnings per Share / RMB0.202 / RMB0.117 / 72.6%

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(Hong Kong, 13 November 2007) – The leading medical device manufacturer in the PRC, Shandong Weigao Group Medical Polymer Company Limited (“Weigao” or the “Group”; Stock code: 8199), is pleased to announce today the third quarterly results of the Group for the three months ended 30 September 2007.

During the period under review, the Group’s turnover amounted to RMB777.4 million, representing an increase of 36.8% as compared to the corresponding period of previous year. Profit attributable to shareholders achieved RMB198.6 million, representing an increase of 75.6% over that the corresponding period in 2006. Basic earnings per share were RMB0.202. The Board of Directors did not propose to declare an interim dividend for the nine months ended 30 September 2007.

Commenting on the Group’s encouraging third quarterly results, Mr. Chen Xue Li, Chairman of Weigao, said, “We are pleased with the remarkable growth on the third quarterly results of 2007. This further proved the effectiveness of the Group’s strategy on optimizing the product mix. During the period, through increase in the capital expenditure, the Group focused on the business development of orthopaedic products, blood purification products and drug eluting stents, and increased the sales and marketing effort on the products of intravenous catheter, high-end infusion sets and auto disable syringes and phased out the production of low value-added products, so that the Company continued to optimize the product mix and achieved remarkable results.”

During the period under review, the result from the adjustments in product mix is effective. Production and sales of drug eluting stent by Shandong JW Medical Products System Corporations (“JW Medical”), which is 50% held by the Company, continued to grow rapidly. During the period, the attributable profit of JW Medical to the Group was RMB42.9 million, representing an increase of 139.8% over the corresponding period in last year. Construction works of the production base which JW Medical invested at the end of last year are still in progress and in anticipated to be put into operation in the first half of 2008.

In respect of the blood purification product, Weihai Weigao Blood Purification Product Company Limited) (“Weigao Blood”) is in the process of obtaining product registration for plasma segregator, lavage set and recombinant protein adsorption column. During the period, Weigao Blood purchased a polymer membrane dialysis device production line. It is anticipated that the production line will be put into operation in the second half of 2008.

As for orthopaedic business, for the nine months ended 30 September 2007, the unaudited revenue of Weigao Orthopaedic Device Company Limited (“Weigao Orthopaedic”), a subsidiary of the Company, was approximately RMB71.5 million, representing a growth of approximately 50.9% over the corresponding period of the previous year. Weigao Orthopaedic has broadened its product registration certificate to include artificial joints. In order to expedite the launching of artificial joint products, Weigao Orthopaedic acquired Beijing Yahua Artificial Joints Development Company which possesses product registration certificates for three artificial joint products and three spinal products. The acquisition enabled Weigao Orthopaedic to become one of the few orthopaedic companies in the PRC capable of producing artificial joint products. Due to capacity constraint, expansion of orthopaedic market was affected. As at the current date, the Group's Weigao Orthopaedic Industrial Park phase I construction work was completed, while the Orthopaedic Industrial Park phase II construction has been commenced and is anticipated to be put into operation in the first half of 2008. Moreover, in order to cope with the demands for medium to low end products in the PRC market, Weigao Orthopaedic acquired 51% equity interests in Changzhou Jianli Bangde Medical Devices Co. Ltd, which further strengthened the competitiveness of Weigao Orthopaedic in the medium to low end trauma products, and expanded its market share.

During the period under review, the market share of the Group’s needle products has been growing rapidly, and generated sales of RMB89.1 million, representing a growth of 171.3% over the corresponding period of the previous year, contributed significantly to the profit of the Group. During the period, the raw needle tube production line invested by the Group was operated smoothly and thus the Group extended the needle product chain and successfully raised the profit margin of intravenous catheters.

In terms of international collaboration, on 11 March 2007, the Company signed a non binding letter of intent with Medtronic, Inc (“Medtronic”) in relation to the proposed investment in the Company by Medtronic of up to a 15% of the enlarged issued share capital of the Company in the form of a combination of existing domestic shares and new H shares to be issued (“Proposed Investment”). In connection with the Proposed Investment, the parties intend to explore the business cooperation opportunities in manufacturing and distribution. Medtronic is the global leader in medical technology. In addition, on 10 September 2007, both the Company and Medtronic reaffirmed the Proposed Investment in the Company by Medtronic and agreed to extend the period for exclusive negotiations until 17 December 2007. Discussions are taking place between the Company and Medtronic relating to operational co-operation in manufacturing and distribution in the spinal, artificial joints and trauma sectors in the PRC through the form of a joint venture and both parties continue to explore other cooperation opportunities in manufacturing and distribution in other sectors.

Looking ahead, Mr. Chen concluded, “Weigao will continue to explore cooperation opportunities with leading international medical device manufacturers through various channels. Furthermore, the Group actively expanded production capacity to meet market demand, adjust product mix, and strengthen marketing efforts and corporate management, in order to improve the overall profitability of the Group. With the changes in the competitions in the PRC market, the Group will evaluate the mergers and acquisitions opportunities, and strengthen its competitiveness, so as to consolidate the Group’s leading position in the market.” - End -

Company background:
Shandong Weigao Group Medical Polymer Company Limited is principally engaged in the research and development, production and sale of single-use medical devices. The Group has a wide range of products, which includes: 1) consumables (infusion set, syringes, blood bags, dental and anaesthetic consumables, blood sampling products, and medical needle and others); 2) orthopedic materials; 3) blood purification consumables; 4) medical and non-medical PVC granules; and 5) stent. The Group’s products are sold under its own brand names, “Jierui” and “Wego Ortho ”. The products are sold throughout the PRC and exported to overseas. Weigao has a nationwide sales network and an extensive customer base of over 5,400 healthcare organizations including over 2,700 hospitals and 400 blood stations.

For further information, please contact:
iPR Ogilvy Ltd.
Callis Lau / Tina Law / Joey Wan
Tel:(852) 2136 6952 / 2136 6181/ 2136 6954
Fax:(852) 2136 6068
E-mail: callis.lau@iprogilvy.com / tina.law@iprogilvy.com/ joey.wan@iprogilvy.com