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CHINDEX INTERNATIONAL, INC.
ANNOUNCES $0.39 PER SHARE FIRST QUARTER EARNINGS ON
223% INCREASE IN REVENUE

BETHESDA, MARYLAND – May 18, 1999 - 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 People's Republic of China, today announced a 223% increase in revenue and dramatically improved income results for its first quarter ended March 31, 1999 over the first quarter of the prior year.

Revenue for this year's first quarter was $9.4 million with net income of $306,000 or earnings per share of $0.39. This compares to revenue of $2.9 million with net loss of $1.4 million or a loss per share of $1.78 for the same period last year.

"We are very gratified with the tremendous improvement in our results this quarter compared to last year," Roberta Lipson, President and CEO of Chindex, commented in Beijing. "This is our second consecutive profitable quarter. We believe that our strategy is working: repeatable, government backed financing for our capital equipment sales and revenue diversification underlie our continuing success."

"We are optimistic in all areas of our business. Both our healthcare products and services segments are performing extremely well so far this year. We are continuing to work on our next loan program which is proposed to be for up to $30 million of medical equipment. We expect to announce major new relationships in capital equipment and distribution services this year. Our flagship private hospital, Beijing United, is on target to nearly double its revenue in 1999 over last year and is still the only operating foreign-invested hospital approved by the Chinese government."

"The business climate in China continues to be upbeat. Although saddened by the recent political events and the related human tragedies, our operations have been largely unaffected by the events in Beijing and other cities in China. We are not anticipating any disruptions in our normal business activities," Lipson concluded.

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. It also operates a private hospital corporation in China. With over eighteen years experience, 285 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 China's professional communities. Information can be found on the Company's website: www.chindex.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 future revenue, customer orders, demand for products and services, development of markets for the Company's products and services and other risks identified in the Company's 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.

# # # #

Financial Summary Attached

 

U.S.-CHINA INDUSTRIAL EXCHANGE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

         
   

Three Months Ended March 31,

     
     

1999

   

1998

             
                           
Total Net Revenue  

$

9,405,000

 

$

2,913,000

             
                           
Cost and Expenses                          

Cost of Goods Sold

   

6,701,000

   

2,138,000

             

Salaries and Payroll Taxes

   

1,440,000

   

1,174,000

             
Travel and Entertainment    

261,000

   

273,000

             
Other    

874,000

   

887,000

             
                           
Total Costs and Expenses    

9,276,000

   

4,471,000

             
                           
Income/(Loss) from Operations    

129,000

 

(

1,559,000

)

           
                           
Other Income and Expenses                          
Interest Expense  

(

8,000

)

(

12,000

)

           
Interest Income    

0

   

67,000

             
Miscellaneous Income    

202,000

   

138,000

             
                           
Total Other Income/Expenses    

194,000

   

193,000

             
                           

Income/(Loss) Before Provision for Income Taxes

   

323,000

 

(

1,366,000

)

           
                           
Provision for Income Taxes  

(

17,000

)

(

41,000

)

           
                           
Net Income/(Loss)  

$

306,000

 

$(

1,407,000

)

           
Net Income/(Loss) per Share  

$

0.39

 

$(

1.78

)

           
Weighted average shares outstanding    

790,313

   

790,313

             

 

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