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Medical Services in Joint Venture For Chinese Production Facility

By Pharmaceutical Processing | March 22, 2004

EDMONTON, Alta (March 22, 2004) — Medical Services International Inc. hasagreed to a joint venture to bring an assembly/manufacturing plant on line in Shanghai,China, to produce VScan rapid test kits.

VScan kits are single use tests for the screening of HIV 1&2 and subgroup O, hepatitis B&C, tuberculosis and West Nile virus. The kits cannot be sold in Canada.

Under the agreement, an unnamed Shanghai-based company would supply the building and labor while Medical Services would supply the technology and training, according to a Medical Services statement.

The proprietary technology will remain the property of Medical Services and the component related to this technology would continue to be manufactured in MedicalServices facilities, the Canadian company said. The Joint Venture would be a 50/50 partnership.

The facility would have the capability of producing 4 million to 5 million kits per year.The joint venture would result in a substantial reduction in costs related to duties, taxes and shipping. A China-based production facility would likely receive “very favorable consideration” in all Chinese markets, according to Medical Services.

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