China Health Labs & Diagnostics Ltd. provides update on operating performance in 2011

    




 TSX-V: CHO OTCQX: CHLBF 

 www.chinahealthlabs.com 

 TORONTO, Feb. 21, 2012 /CNW/ - China Health Labs & Diagnostics Ltd.  ("China Health" or the "Company") , is pleased  to announce that it made progress in its mission of becoming a leading  provider of total solutions for medical diagnostics and food safety  testing in China and achieved its operational goals for the three  months and year ended December 31, 2011. Highlights include the  following: 




        --  Completed installation of 623 BK Clinlab total lab solutions in
            rural hospitals in China, including 36 in the fourth quarter. 
            Installed base of BK Clinlabs increased to 833 in five
            provinces of China by the end of 2011, compared to 210 labs in
            three provinces of China at the start of 2011 (see press
            release dated December 13, 2011 for previous disclosure);
        --  Delivered 67 point of care technology ("POCT") diagnostic
            solutions to four customers, including 30 delivered in the
            fourth quarter of 2011, compared with 35 POCT diagnostic
            solutions to one customer delivered in the full year of 2010
            (see press release dated November 10, 2011 for previous
            disclosure);
        --  Delivered on a $10.1 million (RMB 61.5 million) sales order for
            food safety total lab solutions to the Beijing municipal
            government in the fourth quarter of 2011, compared to $5.5
            million delivered in the full year of 2010 (see press release
            dated November 28, 2011 for previous disclosure);
        --  Strong growth of revenue and profits expected for the year
            ended December 31, 2011 driven by growth in the three areas
            where the Company provides total lab solutions, rather than
            selling individual products.




 As previously reported, revenue grew by 42% to $25.626 million and  profit grew by 66% to $4.228 million for the nine months ended  September 30, 2011 compared to the same period last year.  Revenue and  profit results for the fourth quarter and year ended December 31, 2011  will be reported when the Company's audited financial statements have  been completed and approved, expected before the end of April 2012.   The Company expects that in 2011, revenue seasonality will be similar  to previous years with the first quarter revenues being the smallest  due to the budgeting process of the Company's customers and Chinese New  Year holidays, and the fourth quarter revenues expected to be the  largest due to deliveries of products and services that have been  ordered during the year.  Revenues for the nine months ended September  30, 2010 accounted for approximately 54% of total revenues of $33.705  million for the year ended December 31, 2010. 

 "Our team in China achieved the Company's operational goals for 2011,  growing our sales and customer base in our total lab solutions  business, improving our technology, and expanding our product lines",  said Wilson Yao, CEO of China Health.  "We will continue to work with  our customers to develop and implement diagnostic solutions, improve  our lab management system and provide ongoing supplies of testing  reagents and service.  We believe that the future growth of the Company  will be driven by revenues and profits from the proprietary solutions  we have developed." 

 About China Health Labs & Diagnostics Ltd. 

 China Health, operating in China as the Biochem Group, is a leading  diagnostic lab solution provider for the public healthcare industry in  China. The Company develops and sells Biochem Group branded and  third-party medical diagnostic products and services to diagnostic  facilities in China. Customers include large urban hospitals, rural  hospitals, Chinese military and rescue operations, the Beijing  government and third-party distributors. 

 In 2010, China Health had revenues of approximately $33.7 million, and  intends to expand its business by focusing its efforts on expanding its  sales network in three areas where it provides proprietary solutions,  has limited competition and that are supported by Chinese government  policy and budgets: BK Clinlab total lab solutions for rural hospitals  and clinics, POCT solutions for military and emergency rescue services,  and food safety solutions for large cities in China. 

 Neither TSX Venture Exchange nor its Regulation Services Provider (as  that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this release. 

 FORWARD LOOKING INFORMATION 

 This press release contains forward-looking statements and information  that are based on the beliefs of management and reflect China Health's  current expectations.  When used in this press release, the words  "estimate", "project", "belief", "anticipate", "intend", "expect",  "plan", "predict", "may" or "should" and the negative of these words or  such variations thereon or comparable terminology are intended to  identify forward-looking statements and information.  The  forward-looking statements and information in this press release  includes information relating to the reporting of the Company's  financial results for the fourth quarter and year ended December 31,  2011, the Company's revenue seasonality, the future growth of the  Company being driven by revenues and profits from proprietary  solutions, and the expansion of the Company's business through its  sales network in areas where it has proprietary products, limited  competition and strong government support.  The forward-looking  information is based on certain assumptions, which could change  materially in the future, including the assumption that the Company  will be able to report its financial results as expected, that the  Company's revenue seasonality will continue to be similar to previous  years, that the Company's deliveries on sales orders will result in  revenues, that revenues and profits from the Company's proprietary  total lab solutions will drive the Company's growth, and that the  Company will be able to expand its sales network and business.  Such  statements and information reflect the current view of China Health  with respect to risks and uncertainties that may cause actual results  to differ materially from those contemplated in those forward-looking  statements and information.  By their nature, forward-looking  statements involve known and unknown risks, uncertainties and other  factors which may cause our actual results, performance or  achievements, or other future events, to be materially different from  any future results, performance or achievements expressed or implied by  such forward-looking statements. Such factors include, among others,  the risk that the Company may not be able to report on its fourth  quarter and year-end financial results as expected, the Company's  revenue seasonality may differ from previous years, customers may not  make payment on a timely basis or at all on the Company's deliveries,  the revenues and profits from the total lab solutions may not drive the  Company's growth if any, and the Company may not be able to expand its  business as expected through its sales network in any of the areas in  which it has proprietary products, limited competition and strong  government support.  China Health cautions that the foregoing list of  material factors is not exhaustive.  When relying on China Health's  forward-looking statements and information to make decisions, investors  and others should carefully consider the foregoing factors and other  uncertainties and potential events.  China Health has assumed a certain  progression, which may not be realized.  It has also assumed that the  material factors referred to above will not cause such forward-looking  statements and information to differ materially from actual results or  events.  However, the list of these factors is not exhaustive and is  subject to change and there can be no assurance that such assumptions  will reflect the actual outcome of such items or factors. 

 China Health has also included in this press release figures based on  deliveries on sales orders, which is a non-GAAP measure.  Readers are  cautioned that such a measure is not recognized under Canadian GAAP and  should not be construed to be an indicator of performance or liquidity  or cash flows.  China Health's method of calculating this measure may  differ from the method used by other entities and accordingly China  Health's measure may not be comparable to the measure used by other  entities. 

 THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE  REPRESENTS THE EXPECTATIONS OF CHINA HEALTH AS OF THE DATE OF THIS  PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE.   READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING  INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER  DATE.  WHILE CHINA HEALTH MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE  THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN  ACCORDANCE WITH APPLICABLE LAWS. 

CHINA HEALTH LABS & DIAGNOSTICS


CONTACT:  Judyanna ChenChief Financial OfficerChina Health Labs & Diagnostics Ltd.T: [phone]Email: [e-mail] PedramInvestor RelationsTMX Equicom GroupT: [phone] ext. 264Email: [e-mail] 


    

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