BETHESDA, MARYLAND (June 25, 1998) . . . . Chindex International, Inc. (NASDAQ: CHDX) (U.S.-China Industrial Exchange, Inc.), the leading independent American company providing Western healthcare products distribution and medical services in the Peoples Republic of China, today announced that U.S. Commerce Secretary William Daley plans to preside over the signing of a Letter of Intent between Chindex and Chinas Ministry of Public Health for the purchase of up to US$15 million worth of U.S. medical equipment.
The signing ceremony for the Letter of Intent will take place Monday, June 29 at 4:00pm at Chindexs Beijing United Family Hospital. Those scheduled to attend include U.S. Department of Commerce Secretary William Daley, Chindex Chairperson, President and CEO Roberta Lipson and representatives from the Chinese Ministry of Public Health. Press are welcome to attend.
ABN AMRO Bank will provide a loan to be guaranteed by the Export-Import Bank of the United States for the purchase of the medical equipment. The purchase is contingent on receipt of a loan guarantee from the Export-Import Bank. Chindex had previously worked closely with the Export-Import Bank in a 1996 direct loan project, when Chindex placed US$8.4 million worth of U.S. medical equipment in hospitals in several Chinese provinces through a tied-aid program. This year's loan project is not only larger, but is also broader in scope. Hospitals throughout China will be able to use the money for a wider range of American equipment.
According to Chindex President and CEO Roberta Lipson, the project offers a solution to the equipment financing difficulties that have arisen from rapid market-oriented reforms in China's healthcare system.
"Chinese hospitals can no longer count on their own government grants for equipment purchases, and it is also quite difficult for hospitals to access bank loans. This Letter of Intent is a landmark agreement because it will allow hospitals all over China to import the latest, most advanced American medical technology," Ms. Lipson said.
Ms. Lipson said that many Japanese and European companies have, with the support of their governments, been arranging such financing for years. The support shown by the U.S. government since 1996 has helped Chindex and other U.S. firms retain their competitiveness in the Chinese market.
Equipment to be provided by Chindex under this program includes Acuson diagnostic ultrasound scanners, Lunar bone densitometers, PLC transmyocardial revascularization lasers, TREX Medical/XRE cardiac catheterization imaging systems, and clinical laboratory equipment from Johnson & Johnson Clinical Diagnostics and Nova Biomedical. This project will benefit many States across the nation.
According to Ms. Lipson, the project will also serve the interests of these U.S. manufacturers by allowing their equipment to be showcased in the best hospitals in China. "The 1996 project led to many follow-on purchases by other Chinese hospitals without the use of government financing," she said.
Ms. Lipson said that the general warming in bilateral relations had been a factor in the relative speed involved in putting the project together. The fact that both governments were more familiar with the format and the procedures of such a project also helped it advance more quickly, she added.
The Letter of Intent was made possible because of present and future cooperation between China's Ministry of Health Foreign Loan Office, the U.S. Department of Commerce and the U.S. Export-Import Bank, and with the support of China's Ministry of Foreign Trade and Economic Cooperation and State Planning Commission.
Chindex is a leading American company in healthcare in the Greater Chinese marketplace including Hong Kong and Macau. It provides representative and distribution services to a number of multinational companies including Acuson, Johnson & Johnson, Kendall Healthcare Products, and Schering AG. It also operates a private hospital corporation in China. With over sixteen years experience, 200 employees, and operations in the United States, China, and Hong Kong, the Chindex strategy is to expand its cross-cultural reach by providing leading edge technologies, quality products and services to Greater Chinas professional communities.
Chindex is a leading American company in healthcare in the Greater Chinese marketplace including Hong Kong and Macau. It provides representative and distribution services to a number of major multinational companies including Acuson, Johnson & Johnson, Kendall Healthcare Products, and Schering AG. It also operates a private hospital corporation in China. With over seventeen years of experience, 200 employees, and operations in the United States, China and Hong Kong, the Chindex strategy is to expand its cross-cultural reach by providing leading edge technologies, quality products and services to Greater Chinas professional communities.
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 customer orders, demand for products and services, development of markets for the Companys products and services and other risks identified in the Companys SEC filings. 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.