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

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

December 19, 2006

- SAP ERP System Will Facilitate Compliance with
Sarbanes-Oxley as Well as 
Help to Better Manage Future Growth -

    SHENZHEN, China, Nov. 28 /Xinhua-PRNewswire/ -- 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
implementingthe 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.


    For more information, please contact:

United States

    Company                                 Investor
Relations
    Richard Thomas                          Kathy Price
    Vice President                          The Global
Consulting Group
    Tel: [phone]                  Tel: +1 (646)
284-9430
    Email: [e-mail]        Email:
[e-mail]

China

    Company                                 Investor
Relations
    Annie Chen                              Anne Pang
    Secretary of the Board                  Citigate Dewe
Rogerson - Hong Kong
    Email: [e-mail]     Tel: [phone]
4605
                                            Email:
[e-mail]


SOURCE  Winner Medical Group Inc.

Nagasaki University (Japan) was a recipient of an NHMRC
Program Grant (2005-