Linkwell Corporation Reports Fiscal Year 2008 Financial Results

Revenues Grow 47%, With Net Income Growing 452% to $1.63 Million, or $.02 EPS


SHANGHAI, China, April 30, 2009 (GLOBE NEWSWIRE) -- Linkwell Corporation (OTCBB:LWLL) (the "Company", or "Linkwell"), a leading developer, manufacturer and distributor of healthcare related disinfectants in China, recently reported its financial results for the fiscal year ended December 31, 2008.


   Full Year 2008 Financial Highlights:

   -- Total revenues increased 47% year-over-year to US$11.98
      million
   -- Gross profit increased 50% year-over-year to US$6.02
      million
   -- Gross margin was 50.2%, compared to 47.5% in 2007
   -- Operating income increased 640% year-over-year to US$2.50
      million
   -- Net income increased 452% year-over-year to US$1.63 million
   -- Diluted earnings per share were US$0.02
   -- Cash and cash equivalents as of December 31, 2008 was
      US$2.07million

"We are very pleased to deliver a great fiscal year with strong revenue growth and solid margin expansion in the face of significant macroeconomic headwinds," commented Mr. Xuelian Bian, Chairman and Chief Executive Officer of Linkwell. "We believe that the strong growth we have experienced in 2008 was mainly due to an increase of our sales efforts into our vast distribution network as well as our customer recognition of our high-quality, competitively priced disinfectant products. We are particularly proud the fact that our products were widely used in the Sichuan earthquake and 2008 Olympic Games to meet disinfection requirements. Furthermore, we have struck a very important and strategic relationship with Ecolab Inc. (NYSE:ECL), the global leader in cleaning, sanitizing, food safety and infection prevention products and services. In February 2008, Ecolab invested an initial $2 million in exchange for 10% of Linkwell Tech Group, Inc., our wholly owned operating subsidiary. We expect to begin to leverage our relationship with Ecolab to further our leadership in the Chinese disinfectant market."

Mr. Bian concluded, "While we have performed very well in terms of our core businesses, we think that our stock, which is currently trading at less than 5 times our trailing earnings, is vastly undervalued. Going forward, we will continue to execute our mission statement of supporting the highest standards of public health and safety, while maximizing shareholder value."

About Linkwell Corporation

Linkwell Corporation, through its subsidiary, Linkwell Tech Group, Inc., develops, manufactures and distributes disinfectant healthcare products in China. Linkwell's disinfectant healthcare products are recognized as one of leading domestic Chinese brands in this market segment. Linkwell currently has 56 different products include disinfectants in liquid, tablet, powder and aerosol form. Linkwell has a national marketing and sales presence throughout all 22 provinces, 5 autonomous regions, and 4 special municipalities of China. For more information, please visit http://www.linkwell.us.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive products; pricing and new technology; changes in consumer preferences and tastes; effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production; and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.


                   LINKWELL CORPORATION AND SUBSIDIARIES
                       CONSOLIDATED BALANCE SHEETS


                                               December 31,
                                      --------------------------------
                                          2008                2007
                                      ------------        ------------
 ASSETS
 Current Assets:
 Cash and cash equivalent             $  2,072,687        $    782,727
 Accounts receivable (net of
  allowance for doubtful
  accounts of $801,895 and
  $460,175 at December 31,
  2008 and 2007 respectively)            3,526,440           2,759,745
 Accounts receivable-related
  parties (net of allowance
  for doubtful accounts of
  $376,437 and $221,359 at
  December 31, 2008 and 2007
  respectively)                          3,470,553           1,992,233
 Other receivables                         204,480             157,835
 Inventories (net of reserve
  for obsolete inventory of
  $145,031 and $136,287  at
  December 31, 2008 and
  December 31, 2007
  respectively)                          1,207,352             824,653
 Prepaid expenses and other
  current assets                           339,378                  --
 Due from related parties                2,158,077             946,591
 Assets from discontinued
  operations                                    --           1,804,445
                                      ------------        ------------
 Total current assets                   12,978,967           9,268,229

 Property, plant and equipment
  - net                                    703,935             747,253
                                      ------------        ------------

 Total assets                         $ 13,682,902        $ 10,015,482
                                      ============        ============

 LIABILITIES AND STOCKHOLDERS'
  EQUITY

 Current Liabilities:
 Loans payable                        $    744,069        $    699,210
 Accounts payable and accrued
  expenses                               1,508,271           1,209,228
 Taxes payable                             220,103              92,933
 Other payables                            368,690             174,704
 Due to related parties                     94,583              41,801
 Advances from customers                    91,326              24,644
 Liabilities of discontinued
  operation                                     --           1,459,905
                                      ------------        ------------
 Total current liabilities               3,027,042           3,702,425

 Fair value of derivative
  instrument                               281,030                  --

 Minority interest                       2,118,970             527,244

 Stockholders' Equity:
 Preferred Stock: (No par
  value; 10,000,000 authorized,
  no shares issued and
  outstanding at December 31,
  2008 and 2007, respectively)                  --                  --
 Common Stock: ($.0005 par
  value, 150,000,000
  authorized, 77,955,475 and
  73,731,675 shares issued and
  outstanding at December 31,
  2008 and 2007, respectively)              38,978              36,866
 Common stock issuable                          --                  11
 Additional paid-in capital              6,512,346           5,724,363
 Statutory surplus reserve                 561,222             319,036
 Retained earnings                         430,849            (829,957)
 Deferred compensation                    (318,556)            (51,389)
 Accumulated other
  comprehensive income                   1,031,021             586,883
                                      ------------        ------------
 Total stockholders' equity              8,255,860           5,785,813
                                      ------------        ------------

 Total liabilities and
  stockholders' equity                $ 13,682,902        $ 10,015,482
                                      ============        ============



                 LINKWELL CORPORATION AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS

                                               For the Years
                                             Ended December 31,
                                      --------------------------------
                                          2008                2007
                                      ------------        ------------
 NET REVENUES
    Non-affiliated companies          $  9,362,364        $  5,486,026
    Affiliated companies                 2,623,560           2,641,691
                                      ------------        ------------
      Total Net Revenues                11,985,924           8,127,717

 COST OF SALES                          (5,963,830)         (4,259,128)
                                      ------------        ------------
 GROSS PROFIT                            6,022,094           3,868,589
                                      ------------        ------------

 OPERATING EXPENSES:
    Selling expenses                     1,083,431             848,488
    General and administrative           2,432,327           2,629,006
                                      ------------        ------------
      Total Operating Expenses           3,515,758           3,477,494
                                      ------------        ------------

 INCOME FROM OPERATIONS                  2,506,336             391,095
                                      ------------        ------------

 OTHER (EXPENSE) INCOME:
 Other (expense) income                    (66,554)            144,895
 Put option expenses                      (281,030)                 --
 Interest income                             6,455               3,649
 Interest expense                          (64,191)            (67,717)
                                       ------------        -----------
 Total Other (Expense) Income             (405,320)             80,827
                                      ------------        ------------

 INCOME FROM CONTINUING
  OPERATION BEFORE INCOME
  TAXES AND MINORITY INTEREST            2,101,016             471,922

 INCOME TAXES                             (387,324)                 --
                                      ------------        ------------

 INCOME FROM CONTINUING
  OPERATION BEFORE MINORITY
  INTEREST AND DISCONTINUED
  OPERATION                              1,713,692             471,922

 MINORITY INTEREST                        (149,505)           (132,924)
                                      ------------        ------------

 INCOME FROM CONTINUING
  OPERATION                              1,564,187             338,998

 DISCONTINUED OPERATIONS:
 Gain from discontinued
  operation (including gain on
  disposal of $25,322 at
  June 30, 2008)                            65,083              21,137
                                      ------------        ------------

 NET INCOME                           $  1,629,270        $    360,135
                                      ============        ============

 BASIC AND DILUTED INCOME PER
  COMMON SHARE:
   Basic earnings per shares
    from continuing operation         $       0.02        $       0.00
                                      ============        ============
   Basic earnings per shares
    including discontinued
    operation                         $       0.02        $       0.00
                                      ============        ============
   Diluted earnings per shares
    from continuing operation         $       0.02        $       0.00
                                      ============        ============
   Diluted earnings per shares
    including discontinued
    operation                         $       0.02        $       0.00
                                      ============        ============

 WEIGHTED AVERAGE COMMON
  SHARES OUTSTANDING:
   Basic                                75,339,667          73,195,593
                                      ============        ============
   Diluted                              75,549,558          73,455,345
                                      ============        ============


            

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