CHINA HEALTH LABS & DIAGNOSTICS LTD. AWARDED ADVANCED MEMBERSHIP BY THE CHINA
MEDICAL EQUIPMENT INSTITUTE

VANCOUVER, Dec. 16 /CNW/ - China Health Labs & Diagnostics Ltd. ("China Health") (TSXV: CHO) is pleased to announce that it has been awarded membership with honors by the China Association of Medical Equipment (CAME), for China Health's total diagnostic lab solution, known as the BK Clinlab, for its great contribution in improving rural hospital diagnostic capacity in Henan and Liaoning provinces.  CAME is an industry association that works with manufacturers and the Ministry of Health of the Chinese government to improve standards for medical equipment for rural and urban hospitals.  In 2009, the CAME issued an official letter to all provinces in China naming China Health's BK Clinlab as the "most suitable technology for rural hospital diagnostic labs."

The BK Clinlab was developed by China Health as a suite of standard diagnostics equipment and reagents, hardware and software, for use in rural hospitals, supported by a service network.  The BK Clinlab includes basic in-vitro diagnostic testing equipment (and complementary reagents) such as haematology analyzer, coagulation analyzer, urine analyzer, biochemistry analyzer, and electrolyte analyzer.  China Health has developed proprietary computer hardware and software that connects the diagnostic equipment and assists with analysis, allowing rural hospitals to conduct basic diagnostic tests.  As part of the BK Clinlab, a network of service centres staffed with trained technicians has and is being set up to provide support to rural hospitals within the service areas and to provide a dependable source of reagents.  As rural diagnostic facilities in China are typically underserviced and often lack even basic diagnostic capabilities, China Health believes that it is uniquely positioned to capitalize on this opportunity, as they are the first company in China to identify and create a medical laboratory solution specifically tailored to service the approximately 50,000 rural hospitals throughout China.  In addition, in 2009, the Chinese government announced plans to spend RMB 850 billion (approximately CAD$130 billion) to improve health care over a three year period, including the construction of almost 40,000 new rural hospitals and clinics.

"Since 2007, when we installed our first BK Clinlabs in twenty rural hospitals in Henan Province, we have worked with our customers to improve our rural diagnostic lab solution.  We are now the only total lab solution for rural hospitals recommended by CAME," said Wilson Yao, CEO of China Health.  "As validated by the recognition from the CAME, we have developed a solution that delivers rural hospitals a complete set of diagnostic tests, while providing China Health initial revenues from the sale of equipment, installation and training, and ongoing revenues from the supply of testing reagents, service and maintenance."

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FORWARD LOOKING INFORMATION AND NON-GAAP MEASURES

This 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.    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 BK Clinlabs may not be installed in rural hospitals and clinics in Henan, Guizhou and Liaoning as expected, the installation schedule for the installation of such BK Clinlabs may not be as expected or may be delayed indefinitely, the arrangements with respect to the rural clinics in Jilin province may not continue and may not be finalized, the parties may not enter into a definitive agreement in relation to the rural clinics in Jilin province, the installation schedule for the BK Clinlabs may not be as expected or may be delayed indefinitely, the Chinese government may not proceed, in whole or in part, with its announced increase in spending to improve Chinese health care and the construction of new rural hospitals and clinics.  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 agreements and proposed agreements to install its BK Clinlab total diagnostic lab solution, 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:

Kim Oishi
Director
Telephone:  [phone]
Email:  [email protected]