Winner Medical Begins Production Of PurCotton™

China-based Winner Medical Group Inc. has begun production of its PurCotton™ 100-percent cotton
nonwoven fabric that is non-allergenic and fully biodegradable. The first order, jumbo rolls of raw
PurCotton material expected to ship at the end of this month, was placed by a Japan-based original
equipment manufacturer that will use the rolls to produce such hygiene products as alcohol swabs,
wet tissue and wipes that it will sell under its own brand name.

“This innovative, technologically enhanced fabric offers significant advantages [over]
traditional woven gauze and synthetic nonwoven products including greater absorbency, higher
tensile strength, lower weight and lack of raw edges or extraneous fibers that can exacerbate
microbial infection propensity and increase wound healing complications,” said Jianquan Li,
chairman and CEO. “Furthermore, our patented advanced automation and design process reduces the
average cycle time for production of the finished cloth from raw material,” he added.

January 24, 2007