China Medical (fka CMEDQ)

[juxtaposezen]

China Medical Technologies Announces Change of Independent Auditors

BEIJING, Aug. 7 /PRNewswire-Asia-FirstCall/ -- China Medical Technologies, Inc. (the "Company") (Nasdaq: CMED), a leading China-based medical device company that develops, manufactures and markets advanced in-vitro diagnostic products, today announced the appointment of PricewaterhouseCoopers ("PwC") as the Company's independent registered public accounting firm. PwC replaces the Company's previous independent auditors, KPMG.

The appointment of PwC in replacement of KPMG has been approved by the Company's Audit Committee and the Board of Directors. Upon the appointment, PwC will commence the annual audit work and is working with the Company and KPMG to ensure a seamless transition. PwC has communicated with the Company's Audit Committee and the independent law firm engaged by the Audit Committee regarding the recent independent internal investigation before accepting this appointment. The Company expects to meet the deadline of filing its annual report on Form 20-F for the fiscal year ended March 31, 2009 before September 30, 2009.

"We would like to thank KPMG for their dedicated service over the past five years," said Mr. Sam Tsang, Chief Financial Officer of the Company. "However, we believe that PwC will provide our shareholders with the best combination of cost and quality going forward. We also expect that PwC will provide fresh insights to the Company to enhance our internal controls over financial reporting. We look forward to working with the PwC team."

The Company and KPMG have not had any disagreement on matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures for which disagreement, if not resolved to the satisfaction of KPMG, would have caused KPMG to make reference to the subject matter of the disagreement in connection with its report on the Company's consolidated financial statements.