Shanghai Medical Technology Co., Second Quarter 2008 Financial Results

Net Sales Increase 24.2% to $9.8 Million with Gross Margins of 36.5%

SHANGHAI, China, Aug. 21 /Xinhua-PRNewswire-FirstCall/ -- Aamaxan Transport Group, Inc. (the "Company" or "ATG") (OTC:AAXT) (BULLETIN BOARD: AAXT) , through its subsidiaries, including Shanghai Medical Technology Co., Ltd. ("Shanghai Medical"), a PRC company and a leading provider of Hemodialysis equipment ("HDE") and other related supplies and services, including disposable and diagnostic products, throughout Eastern China, reported its un- audited financial results for the second quarter of 2008 which ended June 30, 2008.

  Second Quarter 2008 Results

                          Q2 2008           Q2 2007         vs. Q1 2007

  Revenue              $9.8 million      $7.9 million          +24.2%
  Gross Profit         $3.6 million      $3.0 million          +18.5%
  Net Income           $1.6 million      $1.7 million           -4.7%
  EPS (Fully Diluted)         $0.11             $0.11           - 0 -



  Business Highlights

   -- In April 2008, the Company completed a private placement with
      institutional and accredited investors which resulted in gross
      proceeds to the Company of approximately $12.5 million.
   -- Shanghai Medical is one of the largest single distributors of HD
      equipment and supplies in the PRC. The Company's customers include
      over 200 medical facilitates, which are comprised of 60 hospitals
      (including Shanghai's top five), blood bank and diagnostic centers
      in Shanghai and Eastern China, and thirty public health centers.
   -- Shanghai Medical utilizes over 20 distributors to reach Eastern
      China and has strategically partnered with a major global provider
      of blood dialysis and diagnostic equipment, to ensure that it meets
      the growing demand for Chinese dialysis products.

  Second Quarter of 2008 Results (Unaudited):


Net revenues for the second quarter of 2008 increased 24.2% to $9.8 million compared to $7.9 million for the same period last year. Revenues during the second quarter of 2008 were derived from an increase in sales volume throughout the Shanghai area, as the company added new customers including hospitals and clinics, and patients covered by government reimbursement plans. Hemodialysis equipment and related disposables generated a majority of net sales for the second quarter of 2008, while disposables comprised approximately 50% of net sales.

Gross profit for the second quarter of 2008 was up 18.5% to $3.6 million, compared to $3.0 million for the same period last year, yielding gross margins of 36.5% and 38.3%, respectively. The slight decrease in gross margins was due to increasing competition, which caused pricing pressure especially at the larger hospitals. Operating expenses for the second quarter were $1.35 million compared to $0.48 million for the same period last year. The increase was due primarily to financing costs, sales and marketing expenditures in entering new markets and management's decision to expand the organization to accommodate future growth while targeting larger volume sales. Operating margins were 22.7% compared to 32.2% for the second quarter of 2008 and 2007, respectively.

Net income for the second quarter of 2008 decreased 4.7% to $1.6 million or $0.11 per diluted share, compared to $1.7 million or $0.11 per diluted share, in the second quarter of 2007.

For the second quarter of 2008, the company used weighted average shares outstanding of 15 million. However, during the second quarter, the company completed a capital raise on April 15, 2008. Assuming a conversion of the convertible preferred shares, the company has 20.0 million shares outstanding post the merger and 2.0 million warrants.

Six Month Financial Results:

Net Revenues increased approximately 26.3% to $20 million for the six months ended June 30, 2008 as compared to $15.8 million for the same period last year. Operating expenses for the six months ended June 30, 2008 were $2.3 million compared to $0.96 million for the same period in 2007, an increase of 139.5%. Operating income for the six months ended June 30, 2008 was $5 million, an increase of 2.4% compared to $5.1 million for the six months ended June 30, 2007.

Net income was $3.55 million for the six months ended June 30, 2008, an increase of $0.16 million, or approximately 4.8% compared to the same period last year. This equated to earnings of $0.18 per diluted share, compared to $0.23 per diluted share for the first six months of 2007 based on 20 and 15 million diluted shares, respectively.

Liquidity and Capital Resources:

Cash and cash equivalents totaled $10.8 million as of June 30, 2008 compared to $2.3 million on December 31, 2007, which includes the $12.5 million financing completed on April 15, 2008. The company had $14.6 million in working capital and a current ratio of 2.57 to 1. Accounts receivable were $4.0 million. On June 30, 2008 Shareholders' Equity was $24.3 million compared to $14.1 million on December 31, 2007.

Mr. Chen concluded, "Our vision and growth strategy is to become a dominant integrated service provider of Hemodialysis (HD) and Renal Care products in China. We will strive to be innovative, while improving operating efficiencies and profitability."

Growth Strategy

Shanghai Medical's goal is to become the dominant provider of Hemodialysis and renal care equipment, supplies, and related support services in Eastern China.

   -- Expand and Strengthen Existing Product Lines
       -- Leverage existing relationships and technical expertise to
          expand product offerings, including new pharmaceutical and
          medical devices to its product line.
       -- Integrating products and services to create a vertically
          integrated organization.
   -- Expand and Strengthen Distribution Network in the PRC
       -- Expand distribution to other strategic regions of the PRC and
          capitalize on possible acquisitions.
   -- Build a nationwide Service Center network for HD services, drugs
      and related medical devices expanding beyond the Shanghai market
       -- Create a stable, recurring revenue stream which will complement
          growth.

  About Shanghai Medical Technology Co., Ltd.


Shanghai Medical is a leading provider of Hemodialysis and renal care equipment, supplies, and related support services in Eastern China. Specifically, Shanghai Medical distributes and sells Hemodialysis equipment ("HDE") which is mainly used by hospitals and medical facilities and includes machines, dialyzers, disposables and diagnostic products used in Hemodialysis, throughout the People's Republic of China.

Cautionary Statement Regarding Forward Looking Information

This press release may contain forward-looking information about the Company, Asian Group Management Group Ltd and Shanghai Medical.   Forward- looking statements are statements that are not historical facts.  These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and statements which may include discussions of strategy, and statements about industry trends future performance, operations and products of each of the entities referred to above.  Actual performance results may vary significantly from expectations and projections as a result of various factors, including without limitation and the risks set forth "Risk Factors" contained in the Company's Current Report on Form 8-K filed on April 21, 2008.

The shares of common stock issued in connection with the transactions have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration under the Securities Act and applicable state securities laws or an applicable exemption from those registration requirements. The Company has agreed to file a registration statement covering the resale of the shares of common stock issued in the private placement and certain other shares, within 45 days of closing.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities referenced herein in any jurisdiction to any person.

- Financial Tables to Follow -

AAMAXAN TRANSPORT GROUP, INC. CONSOLIDATED BALANCE SHEETS AS AT JUNE 30, 2008 AND DECEMBER 31, 2007 (Stated in US Dollars)(Unaudited)

                                                   June 30,    December 31,
                                                     2008         2007
  ASSETS
  Current assets
  Cash and cash equivalents                      $10,769,286  $  2,299,772
  Trade receivables, net                           4,022,912     2,408,223
  Subscription receivables                           394,916       371,035
  Other receivables                                1,222,957       197,845
  Inventories                                      1,826,478     1,206,676
  Advances to suppliers                            4,257,726     1,125,088
  Prepayments                                          2,692         1,368
  Current portion of long term prepayments         1,455,223     1,367,222
  Total current assets                           $23,952,190  $  8,977,229
  Restricted cash                                    300,000            --
  Due from a director                                 54,292         6,796
  Goodwill arising from acquisition                   43,259        40,643
  Deposit for an unlisted investment                 873,134       820,333
  Long term prepayments                            3,371,266     3,851,009
  Plant and equipment, net                           190,407       184,330
  Intangible assets, net                           5,043,802     5,023,174

  TOTAL ASSETS                                   $33,828,350  $ 18,903,514

  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities
  Accounts payable                               $ 2,852,643  $  2,538,964
  Due to a related company                           135,086        54,689
  Customers' deposits                                 24,271        49,325
  Accruals                                           401,275       316,545
  Other payables                                   1,213,594       719,172
  Warrant liabilities                              4,028,229            --
  Income tax payable                                 664,241       909,579

  Total current liabilities                      $ 9,319,339  $  4,588,274
  TOTAL LIABILITIES                              $ 9,319,339  $  4,588,274

  Commitments and contingencies                  $        --  $         --

  Minority interests                             $   218,628  $    217,715

  Preferred Stock - $0.001 par value
   10,000,000 share authorized;
   4,008,188 and nil shares
   outstanding respectively                      $ 8,503,771  $         --

  STOCKHOLDERS' EQUITY
  Common stock - $0.0001 par value
   200,000,000 shares authorized;
   15,991,812 and 14,991,812 shares
   outstanding respectively                      $     1,599  $      1,499
  Additional paid-in capital                       1,723,129       588,265
  Statutory reserves                               2,529,527     2,529,527
  Retained profits                                 9,598,089    10,085,066
  Accumulated other comprehensive income           1,934,268       893,168

                                                 $15,786,612  $ 14,097,525
  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $33,828,350  $ 18,903,514




AAMAXAN TRANSPORT GROUP, INC. CONSOLIDATED STATEMENT OF INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2008 AND 2007 (Stated in US Dollars)(Unaudited)

                                                    2008          2007


  Net revenues                                  $  9,781,453  $  7,872,705
  Cost of net revenues                            (6,207,537)   (4,857,027)
  Gross profit                                  $  3,573,916  $  3,015,678

  Selling expenses                                  (287,148)     (132,750)
  General and administrative expenses             (1,060,792)     (349,801)

  Income from operation                         $  2,225,976  $  2,533,127
  Interest income                                      9,877           558

  Income before income taxes                    $  2,235,853  $  2,533,685

  Income taxes                                      (654,923)     (875,724)

  Net income before minority interests          $  1,580,930  $  1,657,961

  Minority interests                                     424         2,185

  Net income                                       1,581,354     1,660,146

  Net income per share:
  -Basic                                        $       0.11  $       0.11
  -Diluted                                      $       0.11  $       0.11

  Weighted average number of common stock
  -Basic                                        $ 14,991,812  $ 14,991,812
  -Diluted                                      $ 14,991,812  $ 14,991,812



  For more information, please contact:

  For the Company:
   Mr. Chen Zhong, CEO and Chairman
   Email: 

  Investor Relations:
   HC International, Inc.
   Ted Haberfield, Executive VP
   Phone: [phone]
   Email: 

DATASOURCE: Shanghai Medical Technology Co., Ltd.



CONTACT:  For the Company - Mr. Chen Zhong, CEO and Chairman,

; Investor Relations: HC International, Inc. - Ted Haberfield,

Executive VP, [phone], or  

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