Winner Medical Group Inc. Successfully Completes Second Phase of ERP Project

Winner Medical Group Inc., "Winner Medical" (OTC Bulletin Board: WMDG), has successfully completed the second phase of its Enterprise Resource Planning ("ERP") project, and the SAP ERP system is now fully implemented and operating throughout Winner Medical and its subsidiaries.

The Winner Medical ERP Project formally commenced in January 2006, with Phase I of the project focused on effectively implementing a SAP ERP system at the Winner Medical headquarters in Shenzhen. Phase I was completed in June 2006 and the system has run smoothly since inception. Phase II of the project commenced in July 2006 with the goal of implementing the ERP system throughout Winner Medical and its subsidiaries. This phase was completed earlier this month and is functioning well.

"Winner Medical selected the SAP ERP system because of its technical supremacy and ability to seamlessly integrate all of the core business operations of each of our subsidiaries -- from production to supply to sales and finally to financial records -- into one system," said Jianquan Li, Chief Executive Officer. "It has proven to be an effective and efficient solution for managing and improving our internal controls and corporate governance. We believe the SAP ERP system will not only enable us to better comply with Sarbanes-Oxley regulations, but also help us to manage future growth and maintain our competitive advantage.

"To ensure a smooth and timely implementation of the SAP ERP system, Winner Medical engaged IBM consultants to manage the process. Their deep knowledge of business processes and wealth of experience in resolving problems in the area of business and systems integration has proven invaluable," concluded Mr. Li.

Winner Medical has commenced Phase III of the project to implement the key components of the SAP ERP system in order to better manage internal controls and facilitate compliance with Section 404 of the Sarbanes-Oxley Act of 2002. When completed, the SAP ERP system will enable Winner Medical management to accurately assess and report, on an annual basis, as to the effectiveness of Winner Medical's internal controls for financial reporting and enable external auditors to confirm management's assessment.

To date, Winner Medical has invested approximately $2.4 million on the implementation of the SAP ERP system throughout all its companies. This investment includes the cost of the IBM consultants, the purchase of the SAP system implementation program, the purchase of IBM servers and other machinery and the labor cost of more than 30 full time employees.

About Winner Medical Group Inc.

Winner Medical is a holding company comprised of nine wholly owned manufacturing and distribution facilities, two joint venture factories and one trading company. Winner Medical is primarily engaged in the development, manufacturing and distribution of high-quality cotton disposable medical dressings and disposable products. Winner Medical's products include surgical dressings, dressing packs, wound care dressings, protective products, medical instruments, dental products and hygiene products for the institutional and home care markets. Winner Medical products are manufactured in China and sold domestically and abroad, in areas such as Japan, Germany, Italy, the Netherlands, France, the United States, South America, Africa and the Middle East. The company is one of very few Chinese companies licensed by the U.S. Food and Drug Administration to ship finished, sterilized products directly to the US market. To learn more about Winner Medical, visit the company's web site http://www.winnermedical.com.

Forward-Looking Statements

This press release contains certain statements that may include "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. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding Winner Medical and its subsidiary companies' business strategy, plans and objective and statements of non-historical information. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although Winner Medical believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Winner Medical's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Winner Medical's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to Winner Medical or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, Winner Medical does not assume a duty to update these forward-looking statements.

Contacts

United States

Company Investor Relations

Richard Thomas Kathy Price

Vice President The Global Consulting Group

Tel: +1 (843) 682-5001 Tel: +1 (646) 284-9430

Email: rthomas@winnermedical.com Email: kprice@hfgcg.com

China

Company Investor Relations

Annie Chen Anne Pang

Secretary of the Board Citigate Dewe Rogerson - Hong Kong

Email: annie.chen@winnermedical.com Tel: +852 2533 4605

Email: anne.pang@citigatedr-hk.com

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