China Medical Technologies Sponsors the First HIFU Project Initiated by the PRC Ministry of Health and Completes the Development of Its Third Generation HIFU Therapy System

BEIJING--(BUSINESS WIRE)--April 19, 2006--China Medical Technologies (the "Company" NASDAQ: CMED), a leading China-based medical device company that develops, manufactures and markets high intensity focused ultrasound (HIFU) products and advanced in-vitro diagnostic systems, is pleased to announce two significant developments in its HIFU cancer therapy business.

The Company will take part in and be the sole sponsor of the "Comprehensive Study for High Intensity Focused Ultrasound Cancer Therapy" project. This project was initiated by the Ministry of Health (MOH) of the PRC, and will be hosted by the MOH Technology Promotion Center and the China Medical Association, which is the largest medical association in the PRC. As a leader in HIFU technology in China, the Company will provide research funds and establish a dedicated clinical research group to support this project.

“Comprehensive Study for High Intensity Focused Ultrasound Cancer Therapy”

This project will research the basic medicine at the cytology level, bio-medical engineering, and clinical applications through multi-site large sample trials and is intended to achieve the following goals:

-- To establish applicable indications of HIFU;

-- To examine synergies from the combined treatment of radiotherapy or chemotherapy with the HIFU therapy system; and

-- To set up scientific therapeutic protocols for the use of HIFU.

This project is expected to comprehensively evaluate HIFU's social adaptability, economic characteristics and potential clinical applications in order to provide a foundation for the reasonable allocation of medical resources by the Chinese government. The MOH will designate 20 large hospitals as clinical research centers for this project. The Company believes that this project will play a significant role in enhancing the prominence and utilization of HIFU technology in cancer treatment, as well as increasing its acceptance level among hospitals in China.

The Company is also pleased to announce that it has successfully developed its third generation HIFU therapy system that features proprietary non-invasive temperature measurement technology. Following five years of research, extensive testing, and clinical validation, the Company has developed technology that allows the user of its HIFU therapy system to measure and monitor the temperature of the therapeutic focal area in real-time. The Company expects this new advancement to provide doctors with greater guidance and more accurate validation of patient progress during a procedure. The Company has applied for both domestic and international patents for this technology.

As the sole supplier of the imaging component to the Company, GE Healthcare has provided the Company with a customized ultrasound imaging system during the research and development process to meet some of the special requirements for the non-invasive temperature measurement technology.

The Company expects to launch the third generation HIFU therapy system in China in the third quarter of the calendar year. Through discussions with our main distributors, the Company has decided to set the selling price of the third generation HIFU therapy system approximately five percent higher than the average selling price of the current HIFU therapy system. The Company believes that its third generation HIFU therapy system will further strengthen the Company's competitive advantage in this market.

SAFE HARBOR STATEMENT

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "future," "intends," "plans," "believes," and similar statements. China Medical may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements to third parties made by its officers, directors or employees. Statements that are not historical facts, including statements about China Medical's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, China Medical's dependence on its core product, the HIFU therapy system; China Medical's limited operating history; China Medical's dependence on a small number of distributors for a significant portion of its revenues; fluctuations in quarterly operating results; other factors that may affect how the project discussed in this press release can be effectively carried out, which are not within the Company's control; failure to remain competitive in the industries in which it operates; and other risks outlined in China Medical's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1. China Medical does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About China Medical's HIFU therapy system:

China Medical's HIFU therapy system is an ultrasound-guided ablation system that is used for the non-invasive treatment of solid tumors. The Company's unique system is non-invasive, requires no anesthesia, and causes none of the typical damage or side effects that are often caused by radiotherapy or chemotherapy. In addition, the Company's system is environmentally friendly and has been approved for its safety and efficacy, which has helped place the machine for clinical use in over 200 hospitals in China.

About China Medical Technologies, Inc.

China Medical Technologies, Inc. is a China-based medical device company that develops, manufactures and markets products in China using HIFU, for the treatment of solid cancers and benign tumors. China Medical believes that it is a leader in the design and development of HIFU tumor therapy devices in China. In addition, China Medical believes that it is the first China-based company to offer an advanced in-vitro diagnostics system, or IVD system, using enhanced chemiluminescence, or ECLIA, technology to detect and monitor various diseases and disorders through laboratory evaluation and analysis of blood, urine or other body fluids.