Chindex Press Room

U.S.-CHINA INDUSTRIAL EXCHANGE, INC. REPORTS
FOURTH QUARTER EARNINGS AND ANNUAL REVENUES

BETHESDA, MARYLAND - MARCH 29, 1996 - 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 fourth quarter and fiscal year ended December 31, 1995.

The Company reported record financial results for the quarterly period. Total revenues (comprised of net sales and net commission income) for the fourth quarter of 995 rose 36.7 percent from $4,426,000 in 1994 to $6,052,000 in 1995. Net sales (the larger component of total revenues) rose 49.6 percent for the fourth quarter from $3,547,000 in 1994 to $5,305,000 in 1995. Net income increased 147.1 percent from $170,000 to $420,000 and earnings per share increased from $0.04 to $0.13. The Company attributes these increases to its significantly expanded selling efforts and to the offering of extended payment terms to selected customers.

For 1995, total revenues rose 14.2 percent from $13,238,000 in 1994 to $15,117,000 in 1995, and net sales increased from $10,613,000 in 1994 to $13,002,000 in 1995. The Company, however, reported a net loss of $317,000, or $0.09 per share compared to net income of $507,000 or $0.23 per share, primarily due to the postponement to early 1996 of Export Import Bank - tied sales in the amount of $8.4 million as a result of the budget-related shutdown of the U.S. Federal Government. The Company had already incurred most of the expenses allocable to sales in 1995.

"We are pleased with the strength of our fourth quarter and year-end results," Roberta Lipson, President and Chief Executive Officer commented in Beijing. "Record 1995 year-end results were negatively impacted by the government shutdown in the United States, however this impact is short-term as we will record the Ex-Im revenues in early 1996. Additionally, our Ex-Im program, which was approved by the Bank’s Board of Directors, is not affected by the recently announced freeze on new Ex-Im financings to China."

"In 1996 we will leverage our capabilities to aggressively identify additional growth opportunities. We are currently analyzing other emerging Asian markets for future expansion drawing from our experience in China," concluded Ms Lipson.

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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 Machinery, Clark Equipment, Acuson, Johnson & Johnson and Polaroid. With over fifteen years experience, 125 employees, and operations both in the United States and China, Chindex strategy is to expand its cross-cultural reach by providing leading edge technologies, quality products and services to China’s growing professional communities as well as identifying future ventures in other emerging Asian markets. Chindex is listed o NASDAQ under the ticker symbol CHDX.