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Bethesda,
Maryland - March 17, 2004 - Chindex International, Inc. (NASDAQ:CHDX),
the leading independent American provider of Western healthcare products
distribution and healthcare services in the People's Republic of China,
today announced that it has signed a Letter of Intent (LOI) with Xiamen
Zhongshan Hospital to establish its third hospital venture in the
People's Republic of China. The new hospital will be in the southern
city of Xiamen. The company's United Family Hospital network now operates
its flagship hospital in Beijing and will open its second facility
in Shanghai in mid-2004.
"We are very pleased to be signing this LOI
for our third United Family Hospital" Roberta Lipson, President
and CEO of Chindex, commented in Beijing.
"We
have more than five years of successful and growing operations with
our flagship facility in Beijing and our Shanghai hospital will open
later this year. We have the only foreign invested private hospital
network in China. Now we are expanding our market reach into Southern
China. All of our United Family Hospitals are designed to offer a
full range of inpatient and outpatient services on an international
standard basis. In Xiamen, our hospital will be structured as a joint
venture between Chindex and Xiamen Zhongshan Hospital, with Chindex
owning 70% of the venture.
"Assuming
that the final Chinese Government approvals are received and arrangements
for financing the hospital are put in place in the near future, the
Xiamen facility will open in phases starting in 2005. Xiamen is a
city in southern China with the second highest per capita GDP and
a Taiwanese and foreign population of over 70,000. Xiamen United will
be the first foreign invested hospital in the city.
"Our development strategy for the United Family Hospital network
is based on a national hospital administration organization and integrated
clinical operations in the primary facilities. Satellite feeder clinics
associated with each facility will expand the geographic reach within
each urban center. This system not only offers international healthcare
services , but also extends this quality of service into the huge
local Chinese market. We believe that the system offers tremendous
growth potential and improved profitability.
"The
model of primary care clinical services will be based on the model
used in our other facilities. We have proven that our business model
for private hospitals in China works. Future Chindex hospitals are
in the planning stages now as well, including our previously-announced
proposed hospital project in Guangzhou, with respect to which we are
still in discussions with a potential joint venture partner there,�
Lipson concluded .
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-two years of experience,
over 600 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 on behalf of customers,
(ii) future events and earnings, including revenues from the Company's
developmental businesses such as 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, and the uncertainty of financing therefore
(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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