Johnson Health Tech Reports Net Income Grows 64.5%; Sales Up 33%


TAICHUNG, TAIWAN (February 20, 2006) – Johnson Health Tech, Ltd. (TSE 1736), a leading marketer, developer and manufacturer of branded fitness products, announced results for year-ended December 31, 2005. Net 2005 sales were U.S. $266.7 million, compared to 2004 sales of $200.68 million, an increase of 33 percent. The 2005 sales growth results make Johnson Health Tech (JHT) the fastest growing fitness company in the world for the past three years, with an average annualized growth rate of 35.4 percent. Net income in 2005 was U.S. $37.5 million or NTD 9.6 per diluted share, compared to U.S. $22.8 million or NTD 7.26 in 2004, an increase of 64.5 percent. JHT is the fifth largest manufacturer of fitness equipment in the world and is listed on the Taiwan Stock Exchange.

Peter Lo, founder and Chairman stated, “The 33 percent sales growth and 64.5 percent net income growth for 2005 are the results of our commitment to innovation, new products and a sustainable competitive advantage over other major fitness competitors. Johnson leads the industry in vertical integration and has a major cost advantage with our Greater China manufacturing facilities. Our diversified portfolio of fitness brands offers a continuous stream of innovative new products, distributed across multiple channels, which has created balanced growth in both the commercial and home markets in 2005. For the full year of 2006, we are projecting net sales growth of 30 percent over 2005 and targeting earnings growth between 40 and 45 percent.”

JHT is the parent company of Horizon Fitness, DeForest, Wis. Horizon Fitness is a leading manufacturer of treadmills, ellipticals and recumbent bikes. The company's fitness equipment is marketed under two different product lines: Horizon Series and Horizon Elite Series. Horizon Series products can be found at sporting goods retailers across North America, while Horizon Elite Series products are sold at specialty fitness dealers.

Horizon Fitness differentiates itself in the marketplace by designing and manufacturing fitness equipment that is durable, easy-to-use and provides peak performance for maximum value. All key components that go into a piece of equipment are designed and manufactured at a JHT facility. This vertical integration translates to well-designed, high-performance equipment that is backed by one of the strongest warranties in the industry.

About Johnson Health Tech. Ltd
Founded in 1975, JHT is a leading marketer, developer and manufacturer of premium exercise equipment for commercial and home use. JHT's product portfolio includes a full range of cardiovascular and strength training machines. JHT brands are distributed through diversified commercial and retail sales channels in North America, Asia and Europe. JHT now has European subsidiaries in the UK, Germany, France, Italy and Spain, as well as Asian offices in China, Taiwan, Japan, Thailand, and Malaysia.

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