INTERNATIONAL, INC. ANNOUNCES
Bethesda, Maryland February 25, 1999 Chindex International, Inc. (NASDAQ:CHDX) (U.S.-China Industrial Exchange, Inc.), announced today it expects to report a profit for both the fourth quarter of 1998 and the current first quarter of 1999. The Company expects to announce earnings results at the end of March for 1998 and mid-May for the first quarter of 1999.
The anticipated profit is primarily due to shipments under a previously announced $14 million financing program for the purchase of Chindex supplied medical equipment by the Chinese Ministry of Public Health. The financing, arranged by the Company, has been made available to 41 individual Chinese hospitals through a loan extended by ABN AMRO Bank to the Bank of China in Beijing. The loan is guaranteed by the Export-Import Bank of the United States.
"Besides the positive impact on these financial periods, shipments to so many hospitals throughout China helps to seed the market and should generate follow-on sales to other hospitals in these regions," Roberta Lipson, Chindex President and CEO, commented from Beijing. "In addition, we are currently working with the Chinese and U.S. governments toward making this type of financing program an ongoing annual program. We are specifically working on an even bigger program for the coming year."
The Company also announced a one-for-eight reverse stock split of its authorized and outstanding common stock. The reverse stock split is intended to increase the per share price of the common stock towards preserving listing on NASDAQ. The Company has set February 26, 1999 as the effective date of the reverse stock split. The reverse stock split was authorized at a Special Meeting of Shareholders in December of 1998.
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, and Kendall Healthcare Products Company. It also operates a private hospital corporation in China. With over eighteen 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.
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, the timing of any reverse stock split, potential changes in the price of the Companys stock, the timing of any hearing with NASDAQ, 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.