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Press release from CNW Group

China Health Labs & Diagnostics Ltd. Announces Sales Orders for its POCT Field Diagnostics Business

Thursday, November 10, 2011

China Health Labs & Diagnostics Ltd. Announces Sales Orders for its POCT Field Diagnostics Business08:45 EST Thursday, November 10, 2011TSX-V: CHOOTCQX: CHLBFwww.chinahealthlabs.comTORONTO, Nov. 10, 2011 /CNW/ - China Health Labs & Diagnostics Ltd. ("China Health" or the "Company") (CHO: TSXV), is pleased to announce that it has secured sales orders of over RMB 41.3 million ($6.6 million) for its point of care technology ("POCT") diagnostics total solutions and products for delivery in 2011, including $3.75 million in orders that were delivered in the six-month period ended June 30, 2011.  This represents an increase of 16% compared with POCT revenues of $5.7 million for the full year of 2010, with additional sales orders expected for delivery in 2011.The sales orders are from two new customers, the Chinese Armed Police Force and the Beijing Emergency Affairs Office and two customers that have been previously disclosed, China's National Emergency Rescue Team (the "NERT", see press release dated January 24, 2011), and the Chinese military.  The POCT diagnostic solutions and products include the Type A POCT diagnostic field lab, POCT backpacks and a customized POCT diagnostic field lab developed for the Chinese Armed Police Force."Our track record in delivering POCT diagnostic field lab solutions to the Chinese military since 2009 has enabled us to add new customers this year,'" said Wilson Yao, CEO of China Health.  "Our unique patented solution has delivered results in the field on rescue missions and military exercises and we have no direct competitors in China.  Our investment in research and product development is providing good returns as evidenced by our ability to provide a custom solution for the Chinese Armed Police Force.  We are working hard to generate additional sales orders of our high margin POCT diagnostic solutions for this year, and we believe that POCT products will continue to be one of our key drivers of revenue and profit growth."China Health has established a strong working relationship with the Chinese military, which has lead to the cooperative development of POCT products for a wide range of applications.  As disclosed in a press release dated December 8, 2010, China Health signed a three-year research and development agreement with the Chinese Military Medical Equipment Research Institute, based in Tianjin, and with the Third Military Medical University, based in Chongqing, to develop POCT solutions and products for military and rescue diagnostic field lab applications.In 2009, when China Health made its first sales of the POCT "Type A" diagnostic field labs, sales to the military accounted for 11% of revenues or approximately $2.6 million of $23.8 million of total annual revenues.  In 2010, POCT sales to the Chinese military more than doubled to $5.7 million, or 17% of $33.7 million of total annual revenues, compared to the same period in 2009.  In 2011, while the Chinese military is expected to remain the Company's largest POCT customer, China Health has added three new customers and expects continued strong growth in POCT revenues.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 which are supported by Chinese government policies 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 AND NON-GAAP MEASURESThis 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 sales of POCT products, the delivery schedule of POCT products, and the revenue and profit growth of POCT products.  The forward-looking information is based on certain assumptions, which could change materially in the future, including the assumption that the orders for POCT products will result in sales, payment and revenue recognition, the delivery of POCT products will be on schedule, and POCT products will be key drivers of the Company's revenue and profit growth.  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 risks that the POCT product orders from may not result in sales, the Company may not be able to deliver the POCT products on schedule, and the Company's POCT products may not contribute to revenue and profit growth as expected.  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 orders received, 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.For further information: Judyanna Chen Chief Financial Officer China Health Labs & Diagnostics Ltd. T: (416) 865-3351 Email: jchen@chinahealthlabs.com Babak Pedram Investor Relations TMX Equicom Group T: (416) 815-0700 ext. 264 Email: bpedram@equicomgroup.com