Chindex Press Room

THIRD QUARTER RESULTS SHOW
RETURN TO PROFITABLE PERFORMANCE

BETHESDA, MARYLAND - November 13, 1995 - Revenues were up for 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, which today announced its results for the third quarter and nine months ended September 30, 1995. The Company said the anticipated recovery had begun, after two down quarters. For the third quarter ended September 30, 1995, total revenue, comprised of net sales plus net commission income, increased by 24.6% to $4,079,000, as compared to the same period in 1994. Net sales (the larger component of total revenue) increased by 15.3% to $3,272,000 while net commission income increased by 85.1% to $807,000. Total gross profit on sales and net commission income increased by 19.3% to $1,528,000 compared to the earlier period.

"We anticipated a profitable recovery beginning in the third quarter," Roberta Lipson, President and CEO said, referring to the first two quarters this year. "Sales contracts signed earlier in the year began to ship in the third quarter and are continuing in the fourth. Both net sales and net commission income were up for the period over last year and we are optimistic that the fourth quarter will continue to show improvement. "

The third quarter results translate into net earnings of $54,000 or $0.02 per share compared with earnings of $84,000 or $0.04 per share for the same period in 1994. The company said that competitive pressure on profit margins and increased overhead due to expanded sales and promotional efforts were principally responsible for the lower per share earnings in the quarter. For the nine months the company reported a net loss of $738,000 or $0.22 per share. For the same period a year earlier the company reported net earnings of $337,000 or $0.19 per share.