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BETHESDA,
MD (August 11, 2004) - Chindex International, Inc. (Nasdaq:CHDX),
the largest independent American distributor of Western healthcare
products and services in the People's Republic of China, today announced
it has introduced its first wholly owned brand in retail pharmacies
in Shanghai and Beijing. The distribution strategy leverages the Company's
well known United Family brand which has gained consumer recognition
as the name of the private hospital network founded by the Company
in 1997. Chindex plans to distribute a series of United Family product
lines in the home health and personal care market sectors through
its retail pharmacy channels already covering outlets in 41 cities
throughout China and serving 8 of the top 10 pharmacy chains in the
country.
The initial
portfolio of eight baby care products are currently on the shelves
of select pharmacies in Shanghai and Beijing. Preparations are underway
to launch the brand in Guangzhou and other regional cities in East
China later in the year. The distribution rollout over the year calls
for an additional twelve products in the baby care line to be introduced
and coverage to expand to five hundred stores in sixteen cities.
Roberta Lipson,
President and CEO of Chindex, spoke from Shanghai: "The launch of
the United Family Baby Care products marks a significant step forward
for our retail pharmacy distribution business at Chindex. We have
been developing marketing and distribution channels for personal care
products in the emerging retail pharmacy markets in China for several
years. This is the first wholly owned Chindex brand to be introduced.
Our private hospital operations, United Family Hospitals, are well
known throughout China for delivering the highest quality healthcare
services. Our marketing strategy in the retail pharmacy business unit
aims to capitalize on this brand appreciation. We will continue development
of United Family Baby Care and other United Family branded products
for the retail pharmacy markets in the coming months. The market potential
in health related personal care products in the urban markets in China
can easily be measured in the hundreds of millions of U.S. dollars
annually."
Jim Spear,
Senior Vice-President of Chindex, who heads the Healthcare Products
Distribution division at Chindex, commented on the strategy: "Our
target market for United Family Baby Care is the young, upper-middle
class mother in the affluent urban markets in China. We have had great
success with other personal care products in these urban markets over
the past several years. We are strategically at the early stages of
the upscale personal care markets in China."
"We are excited
about the possibilities China represents for the United Family brand.
Our aim is not just to generate brand and product excitement but also
to promote a new level of health consciousness and quality in health
related products. This is the real message of the United Family brand
from Chindex," noted Emmanuel Hemmerle, General Manager of the Retail
Pharmacy business unit in the Healthcare Products Distribution division.
Chindex is
a leading American company in healthcare in the Greater Chinese marketplace
including Hong Kong. It provides representative and distribution services
to a number of major multinational companies including Siemens AG
(diagnostic color ultrasound scanners under the Acuson and Siemens
brand names), Becton-Dickinson (including vascular access, infusion
and critical care systems), Johnson & Johnson (clinical chemistry
analyzers), and Guidant (interventional cardiology products including
stents, balloon catheters and guide wires). Its distribution channels
to the retail pharmacy industry in China have been developed through
a relationship with a major multinational cosmetics manufacturer.
It also provides healthcare services through the operations of its
private hospital corporation in China. With twenty-three years of
experience, over 700 employees, and operations in the United States,
China and Hong Kong, the Company's strategy is to expand its cross-cultural
reach by providing leading edge technologies, quality products and
services to Greater China's professional communities. Further company
information may be found at the Company's websites, www.chindex.com
and www.unitedfamilyhospitals.com.
The statements
in this press release that relate to future plans, events or performance
are forward-looking statements that involve risks and uncertainties,
including risks associated with uncertainties pertaining to the Company's
(i) performance goals, including successful conclusion of efforts
to secure government-backed financing, (ii) future events and earnings,
including revenues from the Company's developmental businesses such
as branded healthcare products and healthcare services, (iii) markets,
including growth in demand in China for the Company's products and
services, (iv) proposed new operations, including expansion of its
healthcare services business, (v) the impact of the SARS epidemic,
including the recovery of delayed or reduced sales, (vi) the timing
of the opening of new hospital facilities, and (vii) the availability
of loan funds. Actual results, events and performance may differ materially.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. The Company undertakes
no obligation to release publicly the result of any revisions to these
forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events.
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