Chindex Press Room

U.S.-CHINA INDUSTRIAL EXCHANGE INC.
ANNOUNCES THE RESULTS FOR THIRD QUARTER 1994

BETHESDA, MARYLAND - November 8, 1994 - U.S.-CHINA INDUSTRIAL EXCHANGE, INC. (NASDAQ:CHDX), a leading American company in market representation and sales for Western business in China since 1981, which also provides research and consulting services to its clients, today announced a 146.0% increase in net sales in the third quarter of 1994 compared to the same period in 1993 and a 100.2% increase in gross profit on sales and net commission income for the same three month period.

Net sales in the three month period were $2,838,000, up from $1,154,000 in the same period a year earlier. Total gross profit on sales and net commission income was $1,281,000, up from $640,000 for the earlier period.

The Company’s nine month numbers were up as well. In the nine months ended September 30, 1994 the Company posted net sales totaling $7,066,000, up 99.4% from the same period a year earlier. Total gross profit on net sales and net commission income was $3,613,000 up 48.9% over the earlier period.

Income, before provision for income taxes, in the three month period ended September 30, 1994, was $140,000 as compared with a loss before provision for income taxes of ($155,000) for the same period a year earlier. Income, before provision for income taxes, in the nine month period ended September 30, 1994, was $545,000 as compared with $230,000 in the same period a year earlier.

The strong sales performance which primarily was fueled by the company’s aggressive sales program in the China market is being coupled with significant personnel additions in key management slots during the period. The company successfully completed an initial public offering in August of this year and has moved quickly to further its growth program both in China and the United States.

"We are very encouraged by our results in this our first quarter as a public company, "said Roberta Lipson, President and CEO in Beijing. "The market potential here in China is tremendous in so many areas. We are positioned for the future and are looking at some new product areas now that will make 1995 a very exciting time."

Through a national sales and technical service network in China, the Company markets and sells a variety of Western industrial products on behalf of its clients. Consulting services for China related trade issues are provided from the company’s United States headquarters in Bethesda.