BEIJING, March 7, 2011 /PRNewswire-Asia-FirstCall/ —
Dehaier Medical Systems Ltd. (Nasdaq:
DHRM) (“Dehaier” or the “Company”), an emerging leader in the
development, assembly, marketing and sale of medical devices and
homecare medical products in China, today announced its financial
results for the fourth quarter and 12 months ended December 31,
2010.

(Logo: http://photos.prnewswire.com/prnh/20100422/CNTH001LOGO)

Fourth Quarter 2010 Financial Highlights

Revenue increased by 126% year-over-year to $6.7 million, up from
$2.9 million in the fourth quarter of 2009. Revenue from homecare
solutions grew dramatically by 998% year-over-year to $2.3 million,
or 34% of total revenue, up from $209,000 in the fourth quarter of
2009. Gross profit increased by 119% year-over-year to $2.5
million, or 36.9% of revenue, up from $1.1 million, or 38.2% of
revenue in the fourth quarter of 2009. Operating income and
operating margin were $1.5 million and 22.8%, respectively,
compared with $764,000 and 25.9%, respectively, in the fourth
quarter of 2009. Net income attributable to the Company improved
145% to $1.5 million, or $0.32 per diluted share based on 4.7
million weighted average shares outstanding, compared with net
income of $602,000, or $0.20 per diluted share based on 3.0 million
weighted average shares outstanding in the fourth quarter of 2009.
Strengthened balance sheet with $5.9 million in cash and cash
equivalents, or $1.27 per diluted share, as of December 31, 2010,
compared with $1.2 million as of December 31, 2009.

Full Year 2010 Financial Highlights

Revenue increased by 58% year-over-year to $19.6 million, up from
$12.4 million in 2009. Revenue from homecare solutions tripled to
$4.5 million, up from

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