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EDAP to distribute China Medical's HIFU devices in the EU and Russia

3 May 2007

Beijing, China. China Medical Technologies, Inc. (Nasdaq: CMED), and EDAP TMS S.A. (Nasdaq: EDAP), have announced an exclusive agreement in which EDAP will distribute China Medical’s high intensity focused ultrasound (HIFU) tumour therapy systems in the European Union (EU) and Russia.

The distribution agreement provides EDAP exclusive distribution rights for an initial period of four years following receipt of EU approval and CE marking for China Medical’s FEPBY series of HIFU systems, with renewal periods following the initial term. China Medical will seek approval for its HIFU devices from the appropriate regulatory bodies with close support from EDAP.

“We expect the agreement between China Medical and EDAP to not only accelerate the development and understanding of HIFU therapy for the treatment of cancer, but also help facilitate the European regulatory approval process for our HIFU systems,” said Xiaodong Wu, Chairman and CEO of China Medical.

“China Medical and EDAP share a commitment of developing innovative and advanced medical devices and we both seek to broaden our global leadership and market reach in key regions. EDAP already has the strongest HIFU sales network in Europe and we think that pairing our two HIFU companies from the East and the West will help advance our marketing efforts and potentially provide opportunities for future collaboration.”

“This is a historic and strategic alliance for HIFU,” said Marc Oczachowski, CEO of EDAP. “Together, our companies represent a dominant force in HIFU applications, and we believe our distribution alliance will accelerate worldwide acceptance of this important technology. EDAP’s Ablatherm-HIFU system has set a new standard in prostate cancer care.

"China Medical is the largest provider of extracorporeal HIFU devices in China for the treatment of solid tumours. Together we will be able to educate the global medical community about the benefits of HIFU more rapidly and make it a major therapeutic tool for the treatment of a broad range of solid tumour diseases.”

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