Preliminary Results For the Year Ended 31 December 2009

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China Medical System Holdings Ltd.

(CMS or the Company)

Preliminary Results

For the year ended 31 December 2009

China Medical System Holdings Ltd. (AIM: CMSH)， a marketing and promotional service provider in China for prescription pharmaceutical products， is pleased to announce its preliminary results for the year ended 31 December 2009. 

Results are reported in US dollar currency unless otherwise stated.

Financial Highlights:

l  Sales up 32.9% to $96.5M (2008: $72.6M)

l  Gross Profit up 35.9% to $60.9M (2008: $44.8M)

l  Net Profit up 38.4% to $20.8 million (2008: $15 .0 million)

l  Basic EPS and Diluted EPS up 38.3% and 37.7% to $0.437 and $0.435 respectively (2008: $0.316 for both)

l  Total dividend per share for the year up 33.3%， to $0.20 per share (2008: $0.15 per  share)

Operational Highlights

l  Exceptional sales increase of our in-licensed products:

                   Deanxit                       $44.5M            21.1% increase (2008:$36.7M)

                   Ursofalk                       $28.3M            34.4% increase (2008:$21.1M)

                   Stulln                          $6.1M              39.9% increase (2008:$4.4M)

                   GanFuLe                     $4.8M              22.3% increase (2008:$3.9M)

                   XinHuoSu                    $7.3M              155.5% increase (2008:$2.8M)         

                   Salofalk                       $1.8M              1，271.4% increase (2008: $0.1M)

                   Cystistat                      $0.5M              680.3% increase (2008:$0.1M)

l  The Imported Drug License of Cystistat was renewed in March 2009

l  Expanded sales & marketing network by employing over 250 new staff  (total sales and marketing team of over 750)

l  Forbes Magazine accreditation for 2010 Forbes China Up & Comers

Commenting on the results， Mr Kong Lam， Chairman & CEO said: 

2009 was another exciting and successful year for CMS. During the year we delivered strong organic growth from our existing product portfolio. We have rich experience in cooperating with overseas pharmaceutical companies and have a proven track record and devoted management team. We intend to continue to grow our existing products’ market share， as well as expand our product portfolio to add at least two additional products each year to increase our revenue.

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