Dehaier, Taiyo-Shanghai and Beijing Orient open filling facility for home oxygen therapy service

Jul 18 2011

Dehaier Medical Systems Ltd. (Nasdaq: DHRM) ("Dehaier" or the "Company"), an emerging leader in the development, assembly, marketing and sale of medical devices and homecare medical products in China, today announced the opening of its first oxygen filling facility and first service center for home oxygen therapy service in Beijing, China. These facilities were opened as part of Dehaier's previously announced strategic alliance with Shanghai Taiyo Nippon Sanso Shenwei (Shanghai) Medical Gas Co., Ltd ("Taiyo-Shanghai") and Beijing Orient Medical Gas Co., Ltd ("Beijing Orient").

In April 2011, through a cooperation agreement with Taiyo-Shanghai and Beijing Orient, Dehaier introduced a home oxygen therapy service to develop distribution channels and increase the availability of home oxygen therapy services in Beijing, with plans to expand into other strategic markets over time. The service center in Beijing's Haidian District provides the equipment necessary for home oxygen therapy service, while also giving individual customers an opportunity to experience Dehaier's homecare products, including sleep and respiratory products such as oxygen concentrators, CPAP machines, and sleep diagnostic equipment.

"Introducing the filling facility and opening the service center represent a major milestone in our home oxygen service program," said Mr. Ping Chen, Chief Executive Officer of Dehaier. "After securing insurance coverage for oxygen therapy products in Shanghai, our partner Taiyo-Shanghai has grown its local market share to over 90%. We believe that Beijing presents a sizeable market opportunity as well, as a result of both the city's aging population and the lack of a standard service, delivery and support platform."

"Under China's 12th Five Year Plan, there are a number of government initiatives designed to accelerate the development of medical homecare, giving us a great deal of confidence about the growth potential of our home oxygen service program. Through our new oxygen service offering, we are not only introducing a standardized product and service to the market, but we have also joined the lobbying effort aimed at securing insurance coverage for home oxygen therapy services in Beijing. We are confident in our ability to duplicate our model in other cities in China, to address this market growth and build shareholder value," Mr. Chen concluded.