Chindex Press Room

U.S. - CHINA INDUSTRIAL EXCHANGE, INC.
ANNOUNCES FIRST QUARTER 1997 RESULTS

BETHESDA, MARYLAND - May 13, 1997 - U.S. -CHINA INDUSTRIAL EXCHANGE, INC. (NASDAQ:CHDX), a leading American company in market representation, sales and consulting services for Western business in China since 1981, today announced its results for the three months ended March 31, 1997. The company reported net income for the period of $165,000 or $0.03 per share, a significant improvement over the same period a year earlier which had a loss of ($45,000) or ($0.01) per share.

Total revenue for the quarter, comprised of net sales plus net commission income increased 46.6% to $5,612,000 as compared to the same period in 1996. Net sales (the larger component of total revenue) increased by 50.2% to $5,498,000 while net commission income decreased from $166,000 to $114,000. Total gross profit on sales and net commission income increased by 42.7% to $1,687,000 compared to the first quarter of 1996.

"We are very pleased with our improved revenue and earnings performance this quarter," Roberta Lipson, President and CEO said from Beijing. "It shows that our traditional business areas remain strong as Chindex prepares to enter the market as a private hospital corporation in China with the opening of our first specialty hospital, Beijing United Family Health Center, later this year. We are on the verge of ushering in a new era in healthcare in China. Our goal at Chindex is to be the marketleader in all our business sectors and we are seeing strong growth in all areas of our corporate development strategy."

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U.S.-China Industrial Exchange, Inc. (Chindex) provides market representation, sales and consulting services in China to a number of multinational and Fortune 500 companies including Volvo Construction Equipment, Acuson, and Johnson & Johnson. With over fifteen years experience, 135 employees, and operations in the United States, China and Hong Kong, the Chindex strategy is to expand its cross-cultural reach by providing leading edge technologies, quality products and services to Greater China’s growing professional communities. Chindex is listed on NASDAQ under the ticker symbol CHDX.