Newsletter 2010

Newsletter 3rd Edition

Microlife Global

The Newsletter of Microlife Family

The

Seed and the

Gigantic Tree Strategic Partnership development

GE, IBM, Medisana, Quanata computer

Energy saving business

Professional Business

ESH 2010•WatchBP Taiwan•WatchBP in UK

Organization development Strategy and Execution

Consumer Business

BB continues with expansion of flexible heating TROA•MLE•China•MSA•MLU market share

th

30 Anniversary Logo design contest th

Founder KY Lin

Chief Editor

Mandy Lee

Editorial Board

KY Lin, Teresa Cheng, Nora Tucker

Contributing Writers

Newsletter Sep. 2010

CONTENT

Becky DiGrazia Christin Liu Eric Lai Eric Wang Jet Tsao Lizette Figueroa Mandy Lee Marc Lang Mervi Pinson Nikki Chou Randy Tsai RC Huang Sam Liang TM Wang Vance Chang Victor Aquino Wan Chin Liu Wei Jung Lo

Art & Design Robbie Ku

Microlife Global

Cover Story Have you ever looked at a huge, old tree and wondered how long it has been there? It's amazing that gigantic tree was simply from a tiny seed. In the same way, our vision and dream are like seeds; our passion and persistence for hard-work are how we plant the seed and nurture it day and night. We will always reap a harvest depending on what we plant and nurture. In the past few months, Microlife family members have been working hard to realize our vision. What types of plants have you been working on to make our dream come true?

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Professional Medical Product Business

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Consumer Medical Product Business

12 13

Energy Saving Business

16 17 18

Manufacturing

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Microlife 30th Anniversary Logo design contest

Microlife WatchBP highlighted at ESH 2010 in Oslo WatchBP Taiwan hits its first milestone Microlife WatchBP in UK

The 2010 Asia Pacific Distributor Meeting in Taiwan Microlife European Distributor Meeting 2010 Microlife China participated in CMEF 2010 & Microlife China distributor meeting Microlife South America participated in FIME Microlife USA received postivie feedback on MT16K1 BB continues with expansion of flexible heating market share

Strategic Partnership development

Vision of Microlife “and” GE for Healthy Individuals and Planet Potential Partnership between Microlife and IBM A quick look at New Product Development with strategic partners The Evaluation of Chinese Labor Costs

Corporate & Organization development Organization Development: Strategy and Execution

What’s New

Zhishan Lohas Learning Center Microlife Green Magic House

Professional Medical Product Business Microlife WatchBP highlighted at ESH 2010 in Oslo From Zero to One Million NT dollars in sales - WatchBP Taiwan hits its first milestone Microlife WatchBP in UK

Professional Medical Product Business

Microlife WatchBP

highlighted at ESH 2010 in Oslo Reported by Mandy Lee, Victor Aquino

With the primary objectives of facilitating the implementation of an international ambulatory blood pressure registry and promoting Microlife WatchBP professional line of products to prevent stroke and heart disease, Microlife sponsored an educational session for the first time at this year’s European Society of Hypertension meeting (ESH 2010), which is one of the most important hypertension congresses in the world.

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Newsletter Sep. 2010

Professional Medical Product Business

Are you WatchBPing? Beside the educational session, the WatchBP series product was displayed at the exhibition ground; more than 500 people visited the stand.

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Dummy patients measured by WatchBP Office ABI (Left) and WatchBP Office Afib (Right)

Live-demo of WatchBP ABI

With no empty seats in the conference room accommodating 500 people, the educational session successfully took place under the theme: “State-of-the-Art Blood Pressure Assessment and National Out-of-Office Blood Pressure Monitoring Registries.� Microlife was honored to invite Prof.

Gianfranco Parati (of Milan, Italy) and Prof. George S. Stergiou (of Athens, Greece) as the chairpersons.

Hypertension experts: Dr. Omboni (Italy) and Dr. Ruilope (Spain) shared their experiences of ABPM (Ambulatory Blood Pressure Monitoring) registry in their respective countries where the Watch BP O3 ambulatory blood pressure monitor is currently used. Prof. Parati also announced the Artemis project for the first time in public, in which Microlife is the major technical sponsor.

What is the Artemis project?

Newsletter Sep. 2010

ARTEMIS (International Ambulatory Blood Pressure Registry: TEleMonitoring of hypertension and cardiovascular rISk project) is the first International Ambulatory Blood Pressure Monitoring Registry aiming at assessing the actual degree of blood pressure and cardiovascular risk control of hypertensive patients followed by doctors all across Europe. Artemis is endorsed by the ESH and sponsored by Microlife.

WatchBP O3 is appointed as the official ambulatory blood pressure monitoring device for this project. www.artemisnet.org

Professional Medical Product Business

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WatchBP Taiwan hits its first milestone In January 2010, WatchBP Taiwan (WBP-TW) started to promote the WatchBP product series in Taiwan. In the early stage of business development, WBP-TW tried to set a workable business model. As WatchBP is a "medical specialist driven" product, we strongly need the feedback from the physicians. Therefore, hospital-based doctors - CV specialists, family physicans were selected as primary target audiences.

By unremittingly conveying the WatchBP concept to doctors, WBP-TW hit one million NT dollars sales in July 2010 by selling directly to medical specialists.

It is not a dramatic sales figure but worth to be marked in the Microlife history. What strategy did WBP-TW take in the past few months?

Targeting the medical centers and regional hospitals, WBP-TW intensively visited doctors and presented the WatchBP product series in hospital department’s internal meetings. So far 35 presentations have taken place, covering 65% of medical centers and 35% of regional hospitals in Taiwan. Most of the specialists commented that WatchBP Home is a unique, meaningful device as it aligns with blood pressure measurement guidelines.

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Newsletter Sep. 2010

TA I W

AN

1.Direct approach to the Cardiology and Family departments in Hospital

1,000,000

NT$

MAP

Reported by Eric Wang, Mandy Lee

2.Collaboration with Pharmaceutical companies WBP-TW has worked together with Sanifi-Aventis for two round table discussions and one CME program (continuing medical education program). Through these activities, WBP-TW gradually estabilished a network with key opinion leaders. The projects with DaiiChi Sankyo and several local drug companies are developing.

Professional Medical Product Business

WBP TW team members: Susan Chou, KY Lin, Mandy Lee, Jeffson Huang, Eric Wang

3.National Clinical Trial using WatchBP Home After intensive visits and follow-ups, a national clinical trial, “Assessment of Nocturnal Administration of Anti-hypertensive Medication: Long-term Outcome Study” is ready to launch by Dr. Chern An Chiang in Taiwan. The project will last three years, include 13 medical centers, recruit 3000 patients and use 3000 units of WatchBP Home. In this project, the 7day diagnostic mode will be implemented, 13 medical centers will use WatchBP Office and WatchBP O3 for patients’ screening in baseline. This project will not only increase sales revenue, but more importantly, clinicians will enhance the solid experience of using the whole WatchBP series.

4.Hospital collaboration model The collaboration models vary in different hospitals, for example: • The Physician-recommended selling model: 4 hospitals are implementing it.

• Patient Centric CV Cloud Computing project - Blood pressure data uploading: a pilot is being run in a regional teaching hospital: Shuang Ho Hospital.

5.Selecting a proper retail channel Since WatchBP products have not been sold in pharmacies, or through retail channels. The most frequently asked question in past few months has been: “Where can we buy it?” To build and select a retail channel is an urgent issue to implement the “Physician-recommend WatchBP Home” model. WBP-TW negotiates a better margin with a medical device specialist chain. The chain offers a vast range of medical device and medical product. Eight selected chain stores in major target hospitals will commence this model in 3rd quarter.

6.Telemedicine projects with hospitals and different companies Telemedicine plays a key role in medical development. Many hospitals and companies have developed the procedures for years.

WBP-TW is working closely with those organizations seeking a profitable business model in order to have WatchBP-branded product enter the professional medical sector, but more importantly to increase brand awareness among the professionals and related stakeholders.

WatchBP Taiwan sets a promising business model that keeps the team moving ahead!

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Newsletter Sep. 2010

Professional Medical Product Business

Microlife WatchBP Development in UK

Reported by Wan-Chin Liu

Edward Gammans (right) and Mike Rich, the Executive Director of BPA

Since Microlife opened its UK offices in Cambridge (with the sole purpose of promoting the WatchBP range), it has made and capitalised on various strategic partnerships, which in turn has enabled us to approach the UK market from three very distinct directions, thus covering all sales and marketing channels.

PARTNERSHIP WITH UK’S LEADING BLOOD PRESSURE CHARITY (BPA) One of these partnerships is with the UK’s premier and only Blood Pressure Charity (BPA) http://www.bpassoc.org.uk. The relationship focuses mainly on the consumer side of the market, which often overlaps into the primary and secondary care markets.

To obtain maximum results from this relationship, we have employed a professional agency whose services include writing editorials/advertorials whilst conducting media research to enhance our marketing potential. These concise articles and effective copy are then distributed to every daily, weekly, monthly, publication throughout the UK. Depending on the target audience, the reader is then directed to the BPA’s website “attracting approximately 1.5 million visitors a year” and more importantly, to their online shop which is dedicated to the Microlife / WatchBP products, the direct sales channel to the consumer. It is noted that due to the high profile of the BPA, most of the editorials are printed and published free of charge.

PARTNERSHIP WITH DOLBY MEDICAL Another partnership which has recently been confirmed, is our UK distributor for WatchBP Products - Dolby Medical http://www.dolbymedical.co.uk. Their target market is both the primary and secondary care sales channels. They were looking for a range of products they felt could justify the time and investment needed for their nationwide sales-force to be able to sell with confidence, with the knowledge that they were at the

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Newsletter Sep. 2010

forefront of innovation and technology, thus leading to success for both parties.

BUILDING RELATIONSHIPS WITH HYPERTENSION SPECIALISTS. Finally, we have been able to identify and build close working relationships with many hypertension specialists within all fields of research and the National Health Service (NHS). We will continue to seek new relationships, whilst building on existing ones to ensure and instill trust in our devices with continued sales, service and support.

Many of these professionals are based at various University Hospitals around the UK and are continually involved in research.

Amongst these professional bodies are a dedicated group of specialists and key opinion leaders. They are all members of the British Hypertension Society (BHS) and it is our relationship with this group of professionals that is very important.

Indeed, it is this core group of people that have chosen the WatchBP Home as the devices to be used in one of the largest studies undertaken in the UK involving 10 major University Hospitals. “The WatchBP devices were chosen as they have been clinically validated and are embedded with software that strictly follows ESH and AHA protocols, thus making them unique. If during the course of the studies, they can prove that using home devices such as these can change patience behaviour it will alter everyone's thinking within the health service and amongst decision makers. In the future, home monitoring will become normal practice and therefore, accepted by both GP’s and hospitals alike. This will lead to private individual purchases and eventually will be heavily funded through local PCT’s”. With much of their work being regularly published in world renowned medical journals, it ensures the name/brand of Microlife and that of WatchBP will be well publicised. This can only lead to the success of the WatchBP products eventually finding their way to all levels of workers in the health service.

Consumer Medical Product Business The 2010 Asia Pacific Distributor Meeting in Taiwan Microlife European Distributor Meeting 2010 Microlife China participated in CMEF 2010 & Microlife China distributor meeting Microlife South America participated in FIME Microlife USA received positive feedback on MT16K1

Consumer Medical Product Business

“2010 Asia Pacific Distributor Meeting(APDM)”

in Taiwan.

—And a special Celebration for Microlife’s 10-Year Anniversary in Asia Pacific Reported by Nikki Chou

distributors: Newage Sdn. Bhd. (Malaysia), Samaphan International Co. Ltd. (Thailand), and PT. Sekarguna Medika (Indonesia), for their 10 years of continuous support in the different categories of “Most Creative Marketing”, “Best Sales Performance”, and “Most Supportive Distributor”, respectively.

Section I : Experience Sharing

Distributor Presentation—PT Sekarguna Medika (Indonesia) and their special presentation on Microlife’s 10-year Anniversary.

On May 31, 2010, 24 participants from nine different countries gathered in Taiwan to attend the 4-day “2010 Asia Pacific Distributor Meeting (APDM)”. Participating distributors arrived from Australia, Indonesia, Malaysia, Nepal, Pakistan, Sri Lanka, Taiwan, Thailand and Vietnam.

Unlike the customary annual distributor meetings, this year’s APDM was no ordinary regional event, for it was the perfect occasion to celebrate an important milestone of Microlife History — Microlife’s 10-Year Anniversary in Asia Pacific.

To acknowledge this special occasion, Microlife’s CEO, Mr. K.Y. Lin kicked off the “2010 APDM” with a special presentation on the company’s history and mission, addressing the company’s vision and strategies for forthcoming and long-term plans. As commemoratory program of this year’s event, Mr. Lin was also invited to present the “Microlife Award” to three outstanding 06

Newsletter Sep. 2010

During the “2010 APDM”, all participating distributors shared their individual experiences of working with Microlife in their respective countries. The vast diversity between countries was remarkable, yet this disparity is what makes the Asia Pacific market so unique, attractive and filled with potential. In order to highlight this experience in accordance with the 10-year Anniversary, the three recipients of the Microlife Award were also invited to share their Successful Stories—from their initial struggle, and encountered obstacles to the current triumphant status they have in the market.

THE INDONESIAN EXPERIENCE In Indonesia, the nature of the economy and culture created a competitive market with overlapping sales channels, offering all sorts of assorted products without any focus or specialty, thus confusing end users while proving no standard in the market. PT Sekarguna therefore changed its way of doing business with a breakthrough innovation of opening its own sales outlet of health and personal care products, meanwhile, Microlife is the sole brand for healthcare devices in the blood pressure and fever management instruments.

THE THAILAND EXPERIENCE In Thailand, “Check life with Microlife” is the slogan used for the current marketing campaign encouraging the

Consumer Medical Product Business

(From left) T.M. Wang, K.Y. Lin, Michael Mehta, and Nikki Chou to award the “Most Creative Marketing” award to Newage Sdn. Bhd. (Malaysia)

public to be more aware of their personal health. This campaign was launched with much sensation and received the public’s attention as Mr. Nirut Sirijanya, a famous Thai celebrity with superior healthy reputation, endorsed for campaign. The Minister of Health in Thailand also expressed his support for this promotion in public, which pushed this successful campaign to another prestigious pinnacle. The second stage of the promotion has yet to be launched, but the public is already anticipating Microlife’s next moves in Thailand.

THE MALAYSIAN EXPERIENCE In Malaysia, innovative promotional ideas have reminded us that doctors are regular consumers as well-with the same curiosity, purchasing interests, and needs towards new products of quality and utility like any other ordinary person. This notion inspired creative incentives and programs that lured Malaysian doctors to enthusiastically approach the Microlife booth during professional medical exhibitions. Those doctors, the key influence on the public’s health, actively purchase Microlife’s products and participate in booth activities for gifts and prizes.

Section II: Microlife’s manufacturing and product updates The second section of the meeting placed greater emphasis on the products themselves, in which Microlife colleagues gave their presentations while interacting with the attendees. It began with Mr. Albert Chen, Senior Director of Project Management, who gave an update on the factory’s highlights, quality and investments, thus, capturing listeners' attention with the latest production improvements and opening the floor for questions. The session was followed by an After Sales Service presentation from Ms. Nikki Chou, Senior Sales & Marketing Manager, TROA, to review the importance and procedures of after sales service and claim reports. Later, all attendees were invited to listen, observe and participate in the practice of blood pressure monitor and fever management device testing, calibrating the devices.

It was a fun and educational learning opportunity for 07

Newsletter Sep. 2010

Borger Chen (left) and Nikki Chou explaining step by step the process of BPM calibration.

everyone because product experts, such as Mr. Borger Chen, QE Associate Manager of Global Regulatory & QM Division, and Mr. Jack Wang, After Sales Service Specialist, TROA, were on the scene to demonstrate the testing process step by step and correct their mistakes, in hopes to avoid similar repetition in the future. After discussing and reviewing regional data, a new product mix was also introduced to the audience by Ms. Nikki Chou, garnering significant rapport and gaining a step closer to future expanded business deals for the region.

Lastly, the “2010 APDM” concluded with a small, but warm Wrap-Up ceremony. Each distributor was appreciated for their presence with a unique APDM gift in remembrance of this event.

All in all, the meeting was a great success and received very positive feedback. The “2010 APDM” not only offered future potential growth but also demonstrated that the distributors’ efforts are acknowledged and that Microlife is continuously searching for new ways to excel in the personal health-care sector along with its partnering distributors.

For 10 years, Microlife has been thriving for excellence in the region. For 10 years, Microlife has been working closely with each of its distributors to improve the well-being of the local community. By having this present achievement at hand, the Microlife Asia Pacific Team is proud and confident to say that for the next 10 years, and the years that follow, Microlife will continue to give its best through thoughtful details and diligent work for the sake of human, environmental and global interests.

Apart from the official schedule, participants were invited to visit Hualien.

Group photo of all “2010 APDM” at the Taroko National Park, Hualien, in East of Taiwan.

Consumer Medical Product Business

Microlife European Distributor Meeting 2010 Reported by Marc Lang

From May 19th to 22nd 2010, Microlife held the 14th European Distributor Meeting (EUDM) in Villasimius, Sardegna - Italy.

The meeting was successful with 80 participants from over 30 countries from Europe, Middle East and Africa. Various topics were discussed including marketing and business strategy as well as technologies and workshops related to new product development.

Dr Omboni presenting synergies between consumer and professional business.

To foster the team building spirit, in addition to the regular meeting, Microlife offered a social event with various sporting competition, including a boat-trip around the impressive Landscape of Sardegna.

Customer feedback after the meeting was very positive, pointing out the content value, the organisation of the Meeting as well as the location and overall spirit during those days. Once again, the EUDM proved to be important in developing new business and strengthening customer commitment to Microlife.

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Newsletter Sep. 2010

Consumer Medical Product Business

Microlife participated in CMEF 2010

Microlife China distributor meeting & Reciprocal Banquet Reported by Christin Liu

Reviewing 2009, Microlife has made significant progress in sales, brand building and customers confidence, and continually maintained our position in the top 3 classes in the professional field.

All of these successful results were due to the untiring efforts and cooperation of each distributor. Meanwhile, we never stop moving forward from good to great, providing even better service to our distributors.

MICROLIFE PARTICIPANTED IN CMEF 2010 In 2010, the 63rd China International Medical Equipment Fair（CMEF）was held in Shenzhen. The exhibition provided services to the entire medical industry chain from the ultimate provision of product to the service of the medical equipment industry, in a direct and all-round way. From the 7th to the 10th of April, Microlife participated in this exhibition and showed our high-quality products, including new technology. It received great feedback from our customers.

MICROLIFE CHINA DISTRIBUTOR MEETING & RECIPROCAL BANQUET For this occasion, Microlife invited both South and North distributors to Microlife’s reciprocal banquet in 2010.

Unlike previous years, not only the south distributors, but also those from the North attended this banquet. This is the first Microlife party that engaged both the South and North. During this occasion, people opened their hearts and spoke their minds freely to exchange their successful experiences and ideas with one another.

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Newsletter Sep. 2010

The Microlife authorized distributor certificate

During the dinner, we organized a series of activities, including a lucky draw and an award ceremony.

Distributors participated whole-heartedly in the communicative activities conducted during the reciprocal banquet. Everybody enjoyed a truly cordial and harmonious atmosphere.

In 2010, Microlife entered a new stage of business expansion. In addition to product development, Microlife’s service center focuses on providing value-added service, which keeps Microlife working together with distributors to succeed in the China market.

Albert Tsou, Director of Asia Pacific Sales & Marketing Business Unit, was presenting the distributor of quality prize to Mr. Wen, General Manager of Guangzhou Jintong Company.

Consumer Medical Product Business

Microlife South America Participated in FIME Reported by Mervi Pinson

FIME (Florida International Medical Expo) takes place every year in August in Miami, Florida and this year marked their 20th anniversary.

FIME can be considered the most important trade show for Latin American markets. This year, the organizers claimed the participation of about 1000 exhibitors and about 12,000 attendants. Miami is an easy destination for most people in Mexico and Central /South America who are then combining business with leisure time. August, being the low tourist season in Florida, hotels are very affordable. Yes, all but Florida’s northernmost beaches in Panhandle were saved from oil spill, so it is very safe and still beautiful to visit.

(Florida’s tourism industry has suffered a lot because of the horrible oil spill we had in Gulf of Mexico.)

MSA crew with our customers from Colombia, Guatemala and Dominican Republic

Liliana Marriaga and Jose Vargas explaining and demonstrating our products to medical students of Florida National College in Miami

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MSA has participated at FIME with our own booth since 2003 and we have met many of our current distributors first time at FIME. This year, we had one of the best and productive FIME meetings ever; we were very busy during the 3 days of the exhibition and had very good meetings with customers at the booth. Interestingly, this was first year that Omron did not have a booth in FIME at all, what we heard was that they had thought it is not necessary since they already have a distributor in every country. That is a very bad marketing decision, I would say, since it is so important to be present and visible. However, it was a remarkable first time presence of many new booths of various Chinese manufacturers of thermometers, BPs and other medical devices. The importance of Latin American countries has quite obviously been noticed.

Consumer Medical Product Business

Microlife USA

Received positive feedback on MT16K1 Reported by Becky DiGrazia

Our latest introduction in Manual Thermometers is the MT16K1 style, that has been well-received at trade shows by new and existing customers alike.

When debuted at the ECRM Cough and Cold Trade Show, the excitement surrounding the display was beyond our expectations.

This new thermometer is being offered in a display holding 20 units; and also as an individual unit, with the display being the most popular item by far. To date, the display has been sold to several customers including Walgreen's, McKesson and Cardinal to name a few.

Comments from customers have been: “Your display provides multiple sales opportunities as customers purchase thermometers for each family member.”

“This new thermometer fills a void - we needed a unique opening price point thermometer.”

“We found what we were looking for ...a great looking, low cost product that can be placed at multiple locations in pharmacies to drive impulse sales.”

“Great eye-catching display, thanks Microlife!"

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Newsletter Sep. 2010

Energy Saving Business

2010 Biddeford

Blankets success continues with expansion of flexible heating market share.

Reported by Lizette Figueroa

In 2010, Biddeford Blankets captured 100% of the Sears USA business. Biddeford Blankets also captured the heating mattress pad business at Target bringing market share at the #2 retailer in the USA to 100%.

Biddeford Blankets shipments have started in 2010 out of BSC (Philippines) and Ongain. Shipments are running 21% ahead of last year through the 1st half.

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Newsletter Sep. 2010

Strategic Partnership development Vision of Microlife “and� GE for Healthy Individuals and Planet Potential Partnership between Microlife and IBM A quick look at New Product Development with strategic partners

Strategic Partnership development

Vision of Microlife

“and” GE for Healthy Individuals and Planet Reported by TM Wang

In Aug. 2010, GE and Intel announced a joint healthcare venture. The new GE/Intel spinoff company has yet to be named, but the two companies will split ownership 50/50. The company will combine GE Healthcare's Home Health division and Intel's Digital Health Group to venture into three major segments: chronic disease management, independent living and assistive technologies. It is interesting to note that all of these areas are mainly patient-facing.

In April of 2009, General Electric (GE) and Intel announced an agreement to collaborate on healthcare, with the two companies pledging a combined $50 million per year of research over a five-year period. Intel later began publicly advocating for a greater role for IT in healthcare, and spent much of 2009 touting the IHG (Intel Health Guide) as a model for healthcare's future. The barrier to widespread adoption of IHG is more than the price; the real problem is, as said by Paul Otellini (CEO, Intel), is US medical infrastructure, which is clinic- and hospital-centered, is not oriented toward illness prevention, and is in the midst of a messy transition to electronic medical records.

In April 2010, a group of GE Managers came to Asia to visit a number of companies in Japan and Taiwan, from whom they intend to identify suppliers as a part of their strategic move into home healthcare business. Microlife is one company in their short list. The successful meeting with 6 Managers from GE to Microlife Headquarter on April 20th brought us the opportunity for continual dialogue on April 21st, where they were convinced that Microlife is more than just a supplier.

In June 2010, 9 representatives from Microlife, including Chairman Lin and others from Asia, Europe and the States, as the only company been invited from that short list, spent two days with 10 Managers from different GE business units in Chicago for information and experience sharing over a broad range of healthcare topics, from regulatory to devices and the needs of developed countries to that of low resource societies.

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GE was one of the original 12 companies listed on the newly formed Dow Jones Industrial Average in 1896 and still remains after 114 years, the only one remaining on the Dow Jones. In 2010, Forbes ranked GE as the world's second largest company, based on a formula that compared the total sales, profits, assets, and market value of several multinational companies. To bring GE away from the impact of recent economic down turn, they committed to invest billions of dollars into two new business domains with new initiatives as Healthymagination and Ecomagination.

Healthymagination is an initiative of GE as a “shared commitment to creating better health for more people. Together.” Ecomagination is an energy-efficiency initiative of GE, making future customers say ”I don’t want anything but an environmentally friendly product.”

Microlife, with the vision to contribute on individuals’ and planet’s health for years, is not alone. There will be more and more congeners will get together!

Microlife colleagues were invited to attend a two-day meeting in the GE research park

Strategic Partnership development

Microlife and IBM Potential Partnership Reported by Wei-Jung Lo, Anthony Liang Meeting with Dr Grundy at MiMHS

The patient-centered medical home (PCMH) can serve as a foundation for transformation of the U.S. healthcare system. The PCMH is an approach to providing comprehensive primary care to adults, youth and children.

The PCMH will broaden access to primary care, while enhancing care coordination.

IBM is one of key players in this field to initiate and promote the PCMH. IBM is doing this from two different perspectives. One is as an employer view point and they want to reduce their employees’ healthcare cost while improving outcomes. The other is to provide web-based and cloud-based tools and solutions to their customers to achieve the PCMH. Dr. Paul Grundy, IBM’s Director of Healthcare Transformation, is leading this PCMH initiative. We had two key meetings with IBM this year to discuss the potential partnerships. The first one was in early April, we visited their Watson Research Lab in NY, and the other we invited Dr. Grundy to visit us in Denver in late May. We have several follow-up meetings with IBM and are still working with them to crystallize the possible cooperation to promote PCMH together with our PCMH Fast Track Program, WatchBP program, WatchWT program, and HealthMI, etc.

As a starting point of aforementioned collaborations, on the one hand, Microlife is now preparing to initiate a joint study agreement with IBM locally in Taiwan to research chronic disease management services (Known as SaaS). The development outcome will unroll the benefit of cloud-enabled technology as well as the integrated solutions of Microlife’s professional devices. On the other hand, IBM is also eager to explore further partnership opportunities with their tele-monitoring (connective home health) and collaborative care applications in the United States.

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Strategic Partnership development

A quick look at new product development with strategic partners Reported by Vance Chang

Medisana:

Microlife and Medisana are co-developing next generation BP monitor and non-contact forehead IR. The significant feature is the connection with the iPhone. iPhone will serve as the display for blood pressure and temperature data. Adoption with iPhone will mark Microlife’s milestone from healthcare hardware to living ware.

Central Systolic Blood Pressure (CSBP) project:

CSBP project is the collaboration project with Yang-Ming medical school, one the top-notch and renowned medical institutes in the world. Non-invasive method will be developed for central blood pressure measurement, which was conducted by invasive way or other complicated non-invasive method. High confidence is obtained during the preliminary study. CSBP will provide hypertensive patients a clear idea about the blood pressure condition in aortic and peripheral. Corresponding medication can be conducted to reduce unnecessary trial and error. CSBP technology by Microlife manifests an area of complicated vascular diagnosis approach in an accessible and affordable manner.

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Quanata Computer Inc:

Today, Quanta Computer is the largest notebook computer ODM company in the world. With leading technology and strong R&D, Quanta has become a leader in hi-tech markets. Microlife collaborated with Quanta to develop the next generation cardiovascular diagnosis device for GP office - WatchCV. The core is based on Microlife’s unique blood pressure technology, which offers IAD, Afib and ABI assessment. The display and mechanism platform is developed by Quanta computer. The display technology adopted top-notch circuit design compatible with the central processor of future generation.

State-of-the-art battery technology provides compact size with significant power out. WatchCV represents a key hardware platform of coherent solutions to empower primary care physicians.

Manufacturing The Evaluation of Chinese Labor Costs

Manufacturing

The Evaluation of Chinese Labor Costs Reported by Sam Liang

Labor costs for companies in China, both foreign and domestic, already went up drastically from July 2010, and will continue for at least the next 5 years.

The labor discontent at the units of Taiwan-owned Foxconn Technology Group and Japanese automaker Honda has brought the issue into sharper focus.

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Earlier in June, Foxconn announced a second increase, boosting wages by 65 % at its plants in southern Shenzhen city. Earlier, Honda offered a 24 % pay hike to its auto parts workers in Foshan, Guangdong, as a way to end an unprecedented strike.

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Additionally, minimum wages in China's 14 provinces have risen more than 20% this year. Minimum wage in Shenzen is expected to go up an average of 22 % to 1,100 RMB ($161) plus other benefits a month beginning in July. The Onbo/Ongain’s wages surged 39% this year.

The report said there is speculation that rising labor costs may lead to global electronics to move to lower wages countries such as Vietnam, India and Indonesia. Foxconn already took action to split employee.

What Onbo/Ongain need to worry about is, according to some professional statistical data in China, wages increasing while total productivity goes down.

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Newsletter Sep. 2010

35 30 20 15 10

Wage: manufacturing

5

Labour productivity

0 1995

1997

1999

2001

2003

2005

2007

Notes: Labour productivity is estimated by Nomura, based on valueadded of industry per employee Source: CEIC and Nomura Global Economics

Corporate & Organization development Organization Development : Strategy and Execution

Corporate & Organization development

Organization Development : Strategy and Execution Reported by RC Huang

Enterprise development is composed by two core foundations: business development and organization development. Business development is a critical key point for a company to survive. Who are the customers, what and how to produce products, how to construct the distribution channel, those are for expanding the business. When the business is successful, and needs to grow continuously, now is the turn of organization development.

As we know, the organization is the most powerful executing machine of human society. We rely on the organization to run business, to fulfill our goals, to satisfy customers. We want the organization to lead us to the best interest to each party, that is, why we need organization development.

The purpose of organization development is not directly to expand the scale of organization or increase income, but successful organization development will make a company profitable and sustainable. The development of organization is to reinforce the effectiveness of the organization, which depends on

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Newsletter Sep. 2010

the quality of execution. So we need to highlight the executive ability as the key of the company's performance. As we know, right business strategy allows the company to gain the position in the keen competitive market. Strategy, the way a company owns its competitive advantage and fulfills its long term objectives, should be executed well; otherwise, it is just an unrealistic dream.

It is clear that if we want our business to be prosperous, we need not only the business strategy but also good execution. As long as the organization develops its ability of execution, everything is possible!

There are many aspects of organization development we ought to strive for. However, the essence of the organization development is: management development, to empower the managers in organization, that is empowerment. Empowerment allows the managers to have the ability, willingness and chance to try and do their best. Not only does the manager need to be trained, but also construct a well organized and positive work environment. A well-developed organization can expand the competence of each employee, and only when each one can do their best, then the business strategy can work.

The big elephant IBM can dance, Microlife can jump from good to great through organization development.

What’s New What can we do about global warming? The beginning of the turning point - Zhishan Lohas Learning Center Microlife Green Magic House

What’s New

Zhishan Lohas Learning Center Facing global warming, what can we do?

The beginning of the turning point Reported by Randy Tsai, Jet Tsao

Fundraising Meeting on July.24.2010

With the objective of promoting Lifestyles of Health and Sustainability, the establishment of Zhishan Lohas Learning Center is based on the concept of lifestyles of health and sustainability(Lohas). The founder of this center is Dr. Yu, Yi-Cheng, the medical consultant of Microlife's HealthMi project and also the doctor in charge of Zhishan Clinic. To help him set up this learning center, the Lohasintec team has devoted themselves to local operation. Dr. Yu hopes that Zhishan Lohas Learning Center can be the collective place of the ideology for community ascending, and community residents can get opportunities to transform personal lifestyle. Not only providing various sports equipments, organic diets, and medical devices for self monitoring, the center also delivers several courses for environmental protection and health promotion. All services can be bartered .

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Newsletter Sep. 2010

Our purpose: ● To make interdependence and lifelong learning in real practice to develop life wisdom and strategies. ● To create local employment opportunities. ● To help people form good habits of health and sustainability. ● To implement recycling, ecology conservation, energy saving and carbon reduction to restore the vitality of environment.

Opening Ceremony: ● Date: Sep. 12, 2010 ● Time: 10:00 am ● Purpose: Grand opening of the learning center and start community service.

What’s New

Microlife Green Magic House Reported by Eric Lai

Microlife Green Magic House is under development Taiwan Cheng Kung University is developing a green building project called “The NCKU Green Magic School”. This building aims to save 50% energy, conserve 30% water, reduce 30% carbon emission, and the building is anticipated to endure one hundred years. Inspired by this project, Microlife is planning a “Green Magic House project” guide on how to live a low-carbon life for those who care about and want to stop global warming. People can experience a low-carbon life in Microlife Green Magic House and use 100 % clean energy generated purely from sun, water and wind. The Microlife Green Magic House is schedulded to be built in 2012.

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Newsletter Sep. 2010

Newsletter Microlife Global Microlife Corporation 9F, 431, RuiGuang Road, Nei-Hu, 114 Taipei, Taiwan.

Tel. 886 2 8797 - 1288 Fax 886 2 2659 - 6853 www.microlife.com.tw

th 30th Anniversary Logo design contest

Microlife started with a vision: to empower people to manage and promote their own health. This vision has been driving Microlife for more than 29 years. Nowadays Microlife has become a successful international corporation. Microlife will celebrate its 30th anniversary in 2011. On the occasion of this important milestone, you are cordially invited to join the 30th anniversary logo design contest. ● Qualification: all Microlife colleagues ● First Prize: USD500, Second Prize: USD300, Third Prize: USD100, plus an official certificate from Microlife. ● Submission deadline: Oct 8, 2010 All participants have to send their submissions to mandy.lee@microlife.com.tw to take part in this contest. All the logos will be available on the web after submission deadline. Every Microlife colleague has one vote to logos. The participant with the most votes will receive a USD 500 reward.

Logo Contest Rules and Requirements: 1. The design should incorporate the current Microlife logo. The Microlife logo is available in high resolution by contacting Mandy Lee at mandy.lee@microlife.com.tw 2. The logo should be widely adaptable. Specifically it should look equally good at invitation card size, large poster size, and scalable to any size in between; it should be recognizable in color, black/white, and grayscale.

3. The final designed logo will be used on all promotional materials and for any other means Microlife needs during the anniversary year.

4. All submissions must be in a digital format (not hand-drawn) and able to be modified.

Vector image files and .jpg are acceptable. All logos should be designed at 300 dpi. Do not exceed 3MB. 5. All participants have to send their submissions to mandy.lee@microlife.com.tw to take part in this contest. All the logos will be available on the web after submission deadline. Every Microlife colleague has one vote to logos. The participant with the most votes will receive a USD500 reward.

Submission deadline: Oct 8, 2010 ● Vote date: Oct 11-15 ● Result announcement: Oct 18 ● Contact: Mandy Lee (mandy.lee@microlife.com.tw)