Singapore, Jan 12, 2012: China Kanghui, a leading domestic developer, manufacturer and marketer of orthopedic implants in China, has announced that the company's operating subsidiaries, Beijing Libeier Biology Engineering Research Institute and Changzhou Kanghui Medical Innovation, have received approvals from relevant authorities for the renewal of their respective "High and New Technology Enterprises" (HNTE) status.

Ms Sarah Wang, chief financial officer of the company, stated, "We are pleased that both of our operating subsidiaries have successfully renewed their HNTE status, pursuant to which the applicable income tax rate of the two operating subsidiaries for years 2011, 2012 and 2013 will be 15 percent, as compared to the statutory 25 percent income tax rate that the Company used to accrue its income tax expenses for the first nine months of 2011. We anticipate that the extra income tax expenses accrued in the first nine months of 2011 will be reversed as tax benefit in the fourth quarter of 2011."