SOURCE: Linkwell Corporation

December 18, 2006 08:00 ET

Linkwell Corporation Assumes Management and Operational Control of Gene Diagnostics Company in Beijing

SHANGHAI, CHINA -- (MARKET WIRE) -- December 18, 2006 -- Linkwell Corporation (OTCBB: LWLL), a leading developer, manufacturer and distributor of healthcare-related disinfectants in China, today announced its Chinese subsidiary, Likang Disinfectant High-Tech Company, Limited, has entered into an agreement to assume management and operational control of Zhongke Jinmeihua Biotech Company, Limited ("Jinmeihua"). The contractual arrangements include exclusive sales, consulting, and operating agreements. Additionally, Linkwell has the option to acquire Jinmeihua by December 31, 2007, on the basis of net tangible assets.

Zhongke Jinmeihua, founded in May 2006 as a national certified high-tech enterprise, engages in providing services of gene diagnostics for early detection of human diseases, such as tumors, cardiovascular diseases, diabetes, and genetic disorders. For more information about Jinmeihua, please visit http://www.zkjmh.com

The Company had unaudited revenues from operations of approximately $750,000 in the quarter ending September 30, 2006, with approximately 15% net profit margin. Under the contractual arrangements, Linkwell will be able to consolidate the financial statements of Zhongke Jinmeihua under the GAAP accounting principles.

A rapidly expanding number of genetic mechanisms contributing to disease can be accessed via molecular analysis. In order to take full advantage of this potential for genetic diagnostics, and to monitor treatment by gene therapy and other emerging methods, a new generation of diagnostic techniques will be required. Of central importance in future analyses is the possibility to perform very large numbers of simultaneous genetic analyses in analytical devices of small linear dimensions. Scientists have developed a new molecular probe design that is amenable to highly multiplex, specific analyses of total genomic DNA or of RNA molecules expressed in tissue samples. Jinmeihua's technology platform is supported by Beijing Gene Research Laboratory of Chinese Academy of Science. With advanced Gene-Sequencing Technology and SNP Genotyping Technology, Beijing Gene Research Laboratory is ranked as one of top molecular genetics laboratories in the world.

Mr. Xuelian Bian, CEO and President of Linkwell Corp., stated, "Gene diagnostics is the cutting edge technology in the latest g advance of molecular genetics. This agreement is an important step in management's objective to broaden its sales offerings and leverage its distribution channels. We will utilize our marketing capabilities to expand Jinmeihua's sales significantly in 2007. By using different resources such as local hospitals, sales networks, professional conferences, management is confident that Linkwell can significantly increase sales for this high margin product category with its current sales team and sees this agreement providing Linkwell with a significant increase in revenue and operating income in 2007 and beyond. We believe this new division will substantially enhance our prospective of triple-digit growth of revenues and earnings for 2006 to 2008."

About Linkwell Corporation

Linkwell Corporation (OTCBB: LWLL) develops, manufactures, and distributes disinfectant healthcare products in China through its 90% owned subsidiary Shanghai Likang Disinfectant High Tech Company ("Likang"). Linkwell's disinfectant healthcare products are a nationally recognized domestic Chinese brand in this market segment. Linkwell products include disinfectants in liquid, tablet, powder and aerosol form. Through Likang, Linkwell has a national marketing and sales presence throughout all 22 provinces, 5 autonomous regions, and 4 special municipalities of China. All inventory and order fulfillment is carried in our 21,500-square-foot facility in Shanghai's Jiading district. For more info about the company, please visit http://www.linkwell.us

Safe Harbor Statement

Certain of the statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "forecast," "anticipate," "plan," or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties and risks, including those relating to the Company's ability to grow its business. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.

Contact Information