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Press release from CNW Group

China Health Labs & Diagnostics Ltd. announces new product launch For POCT diagnostics field labs

Tuesday, August 09, 2011

China Health Labs & Diagnostics Ltd. announces new product launch For POCT diagnostics field labs08:45 EDT Tuesday, August 09, 2011TSX-V: CHOOTCQX: CHLBFwww.chinahealthlabs.comTORONTO, Aug. 9, 2011 /CNW/ - China Health Labs & Diagnostics Ltd. ("China Health" or the "Company") (TSXV:CHO; OTCQX:CHLBF) is pleased to announce that it will launch its new Type B Point of Care Technology ("POCT") diagnostic field lab on August 18, 2011 at a major medical equipment conference, the China-HOSPAC 2011, in Beijing, China.The Type B POCT diagnostic field lab (the "Type B") is slated to replace the Type A POCT diagnostic field labs (the "Type A"). Since it was launched in 2009, the Company has sold over 60 Type A diagnostic field labs to the Chinese military and National Emergency Rescue Team ("NERT"). The Type B performs all the same diagnostic tests as the Type A, but has been improved along a number of parameters:Upgraded instruments providing faster and more stable diagnostic testsUpgraded lab management system with a touch screen user interfaceSmaller and lighter, making it easier to transportImproved frame strength and shell resistance to water and ashThe Type B was developed with the Chinese Military Medical Equipment Research Institute (the "Institute"), based in Tianjin. China Health has established a strong working relationship with the Chinese military, which has led to the cooperative development of POCT products for a wide range of applications. As announced in a press release dated December 8, 2010, China Health signed a three-year research and development agreement with the Institute and with the Third Military Medical University to develop POCT solutions and products for military and rescue diagnostic field lab applications. China Health owns all intellectual property, as well as manufacturing and marketing rights, resulting from this R&D agreement, which includes the improvements made with the Type B."The Type A POCT diagnostic field lab is a proven solution, having been deployed effectively in a number of natural disaster rescue missions and military exercises. The Type B was developed based on the operational experience of the Chinese military, our largest customer and R&D partner," said Wilson Yao, CEO of China Health. "While we are the only supplier to the Chinese military and the NERT, we believe that it is important to continually improve our diagnostic solutions to provide increased value to our customers and maintain our competitive advantage. With our proprietary products and early successes in delivering results in the field, we believe that POCT products will be one of our key drivers of revenue and profit growth as we build our business with the Chinese military and the NERT and seek new customers. Our POCT business had strong growth in 2010 and was a key contributor to our strong performance in the first quarter of 2011."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 INFORMATIONThis 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 launch of the Company's Type B diagnostic field lab, its replacement of the Type A diagnostic field lab, the POCT products being a key driver of revenue and profit growth, 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's Type B diagnostic field lab will launch as expected, that it will replace the Type A diagnostic field lab, that the POCT products will drive revenue and profit 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 launch its Type B diagnostic field lab as scheduled, that it may not replace the Type A diagnostic field lab, that the POCT products may not drive revenue and profit growth as expected, and that 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.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.For further information: Babak Pedram Investor Relations TMX Equicom Group T: (416) 815-0700 ext. 264 Email: bpedram@equicomgroup.com