CHINA MEDSTAR LIMITED

Equipment sale completed

China Medstar Limited ("Medstar" or the "Company"), a specialist in the supply
of diagnostic imaging and radiotherapy equipment to medical centres in
hospitals in China, announces it has completed the large equipment sale
previously mentioned in its September interim results.

The Company has completed the sale of a General Electric ("GE") 64CT scanner
plus ancillary equipment to one of the General Hospitals in Luoyang, Henan
Province. The Company had experienced a delay in this planned sale as a result
of time taken by the hospital to obtain the necessary governmental permit for
this equipment.

Dr. Cheng Zheng, Chairman and CEO, commented:

"At the time of our admission to AIM we set out a series of objectives, namely
to expand the Trading Division and increase investment in further radiotherapy
centres - key targets we have met this financial year. Revenue recognised from
this sale is in line with our expectations and we look forward to making
further announcements of Trading Division sales during the current financial
year."

                                                               27 November 2007

Enquiries:

China Medstar Ltd                      Tel: +86 (10) 5825 6867               
                                                                             
Dr Cheng Zheng, Chairman and CEO/ Yap                                        
Yaw Kong, CFO                                                                
                                                                             
Evolution Securities                   Tel: +44 (0) 20 7071 4300             
                                                                             
Tom Price/Bobbie Hilliam                                                     
                                                                             
Evolution Securities China             Tel: +44 (0) 20 7220 4850             
                                                                             
Nick Martin                                                                  
                                                                             
Nexus Financial Ltd                    Tel: +44 (0) 20 7451 7050             
                                                                             
Nicholas Nelson/Kathy Boate                                                  



END


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