China Health Labs & Diagnostics Ltd. launches new products at ChinaMed 2012

TSX-V: CHO
OTCQX: CHLBF
www.chinahealthlabs.com

TORONTO, March 27, 2012 /CNW/ - China Health Labs & Diagnostics Ltd. ("China Health" or the "Company") (TSXV:CHO; OTCQX:CHLBF), is pleased to announce that it has launched four new products at the 24^th Annual ChinaMed Conference ("ChinaMed") held at the China National Convention Center in Beijing China from March 23^rd to 25^th.  ChinaMed is one of the largest and most influential exhibitions in the Chinese medical equipment and device industry, co-organized by the Health Department of General Logistics Department of Chinese People's Liberation Army, China World Trade Center Co., Ltd., Hui Tong Xingye International Exhibition (Beijing) Co., Ltd. and Messe Düsseldorf (Shanghai) Co., Ltd.  Over 500 exhibitors from 20 countries and regions participated in ChinaMed, attracting an estimated 30,000 trade visitors from China and the world.

China Health also exhibited its full line of rural hospital diagnostic lab total solutions, point-of-care (POCT) lab solutions, food safety test total solutions and diagnostic equipment for urban hospitals and labs.

The four new products launched at ChinaMed included the Type C POCT Diagnostic Field Lab and the Rural Emergency Rescue Medical Total Solution, which were developed under the Company's research and development agreement with the Chinese military (see press release dated December 8, 2010); and, the BK Early Diagnosis System for Cardio-Cerebral Vascular Disease (the "BK-iED"), and BK Food Safety Rapid Test System ("BK-iRT") which were developed in the Company's Beijing research and development facility.

The Type C POCT Diagnostic Field Lab was developed to meet the needs of provincial emergency rescue teams, mine rescue teams, and clinical laboratory and emergency departments in remote county hospitals.  Compared to Type A POCT and Type B POCT labs, which were developed for use by the Chinese military, the Type C is smaller, lighter, and airtight making it easier to transport and manipulate and more resistant to corrosion and ash.  It also has an enhanced 3G telecommunication module to facilitate medical telephone consultation between field rescue operations medical resources in hospitals and labs. The Type C POCT is equipped with semi-auto biochemical analyzer running 22 tests, a blood cell counter running 9 tests, a urine analyzer running 11 tests, and an electrolyte analyzer running 5 tests.

The Rural Emergency Rescue Medical Total Solution was developed in response to Chinese government policy aimed at improving the emergency rescue system in sparsely populated rural areas, in provinces and territories such as Xinjiang, Inner Mongolia and Tibet, where there is a big gap between pre-hospital rescue and in-hospital treatments.  The Rural Emergency Rescue Medical Total Solution is comprised of a proprietary Stretcher Intensive Care Unit ("Stretcher ICU") which integrates an oxygen cylinder, transfusion pump, ECG monitor, and ventilator, into a mobile portable bed that is designed for use in an ambulance.  The ambulance is also equipped with communication and GPS modules to enable continuous connection between the emergency rescue team, dispatch center and hospital.

The BK Early Diagnosis System for Cardio-Cerebral Vascular Disease (the "BK-iED") was developed to meet the need for early diagnosis of cardio and cerebral vascular disease in retirement homes and communities in China that do not have regular and convenient access to specialist physicians such as cardiologists.  Due to the aging population in China and relative shortage of cardiologists that can service retirement homes and communities, there is a need to have a tool that general practitioners and medical workers can use to screen for cardio and cerebral vascular disease. The BK-iED consists of an ECG diagnosis module, a dry chemistry blood monitor module, and an information management module. It is also equipped with a 3G telecommunication module to enable medical workers to do early screening and then consult with cardiologists and other specialists at larger hospitals.

The Food Safety Rapid Test System ("BK-iRT") was developed to meet the need for a compact, easy to operate, rapid and mobile food safety testing solution.  Improving food safety is a major priority for the Chinese government at the national and local levels, with increasing budgets for monitoring and enforcement of regulations. To date, China Health has installed 337 enterprise level food safety labs (hosted in large food distribution and manufacturing enterprises), 17 regional labs, and 17 mobile labs all for the Beijing municipal government.   The BK-iRT was designed such that it can be transported in a small car and used by teams of health safety officers responsible for monitoring the thousands of food distribution nodes that exist in large Chinese cities.  Another target market for the BK-iRT is food safety monitoring for cafeterias and canteens located in universities and military compounds. BK-iRT, designed to sample and test food products on site, integrates sample treatment, detection, and information management in a mobile, user-friendly system. BK-iRT is able to conduct over 60 types of tests and consists of a physicochemical detection module, a pathogenic bacteria identification module, a biotoxin detection module, and an information management module.  It is also equipped with a 3G telecommunication module to transmit data and communicate with a network of mobile and stationary labs.

"These four new products were developed to meet specific medical diagnostic and food testing needs based on consultation with our customers and our knowledge of Chinese government policy and budget priorities," said Wilson Yao, CEO of China Health.  "While the products are targeted at different markets they are all designed to be easy to use, deliver fast and reliable results and be linked to lab and hospital networks.  We were very encouraged by a successful launch at the ChinaMed conference, where current and potential customers were able to view our new and existing products and attend workshops to learn about the value of our solutions.  Our R&D and marketing teams did a great job of using our market knowledge and proprietary technology to develop new products that address urgent needs in the large and growing Chinese market for medical diagnostics and food safety testing."

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 INFORMATION

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.  The forward-looking statements and information in this press release includes information relating to 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 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 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.

Judyanna Chen
Chief Financial Officer
China Health Labs & Diagnostics Ltd.
T: [phone]
Email: [email protected]

Babak Pedram
Investor Relations
TMX Equicom Group
T: [phone] ext. 264
Email: [email protected]