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CHINDEX INTERNATIONAL, INC.
ANNOUNCES THIRD QUARTER AND NINE MONTH 1999 RESULTS

BETHESDA, MARYLAND – November 15, 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 results for its third quarter and nine months ended September 30, 1999.

Revenue for this year’s third quarter was $7.0 million with a net loss of $445,000, or a basic loss per share of $0.56. This compares to revenue of $3.4 million with a net loss of $737,000 or a basic loss per share of $0.93 for the same period a year earlier.

Revenue for this year’s nine month period was $29.6 million with net income of $678,000 or basic earnings per share of $0.86. This compares to revenue of $11.8 million with a net loss of $2.8 million or a basic loss per share of $3.56 for the same period last year.

Chindex Chairperson, President and CEO, Roberta Lipson, speaking from Beijing, commented on the third quarter results and the state of Chindex’s growth strategy:

"We are pleased with the substantial progress we have made this quarter compared to last year. Although this quarter did not show a profit, the situation is consistent with historical quarterly fluctuations in our performance due to the timing of revenues in our capital medical equipment business. Our business has traditionally operated on a calendar year basis and in that context we are pleased with the turnaround we have been able to achieve over the past two years. Our revenue diversification programs are on track, and the market demand for the products and services we offer is extremely strong.

"In our capital medical equipment business, we are in the final contract process of our next loan program for up to $30 million to be guaranteed by the Export-Import Bank of the United States. From there we move on to the process of final government approvals. Once all the required approvals are in place, this round of financing would allow us to supply our products to more than 50 individual hospitals throughout China and we believe that it would provide a substantial revenue impact for us as shipments begin in early 2000. This would be the third such financing we have arranged for the sale of our medical equipment over the last four years.

"Our healthcare products distribution business has seen rapidly expanding revenues this year as we continue to develop the tremendously lucrative potential in the retail pharmacy markets as well as expand our product portfolio for the hospital markets. We have been in negotiations on new and exciting distribution relationships in the retail area, one of which we are also announcing today.

"Our Beijing United Family Hospital is still the only government-approved foreign-invested healthcare facility in China. Its contribution to our consolidated revenue picture is increasing every quarter. We are working hard on expansion plans which include a substantial increase in services offered in the Beijing area, as well as regional outreach programs beginning in Shanghai and Guangzhou. We will have some very exciting details on these developments which will be announced in the months to come."

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, approximately 300 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. Chindex is listed on NASDAQ under the ticker symbol CHDX. More information is available at 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 customer orders, demand for products and services, availability of financing including any Export-Import Bank guaranteed financing, 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

 

CHINDEX INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

         
   

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 
     

1999

   

1998

   

1999

   

1998

 
Total Net Revenue  

$

6,966,000

 

$

3,365,000

 

$

29,611,000

 

$

11,786,000

 
                           
Cost and Expenses                          

Cost of goods sold

   

4,630,000

   

2,167,000

   

20,832,000

   

7,868,000

 

Salaries and payroll taxes

   

1,635,000

   

1,421,000

   

4,890,000

   

3,828,000

 
Travel and entertainment    

388,000

   

288,000

   

989,000

   

1,045,000

 
Other    

983,000

   

767,000

   

2,885,000

   

2,852,000

 
                           
Total Costs and Expenses    

7,636,000

   

4,643,000

   

29,596,000

   

15,593,000

 
                           
Income/(Loss) from Operations  

(

670,000

)

(

1,278,000

)

 

15,000

 

(

3,807,000

)

                           

Other Income and Expenses, net

   

227,000

   

504,000

   

734,000

   

999,000

 
                           
Minority Interest    

0

 

(

12,000

)

(

18,000

)

(

12,000

)

Income /(Loss) Before Provision for Taxes

 

(

443,000

)

(

786,000

)

 

731,000

 

(

2,820,000

)

(Provision)/ Benefits for Income Taxes

 

(

2,000

)

 

49,000

 

(

53,000

)

 

5,000

 
Net Income/(Loss)  

$(

45,000

)

$(

737,000

)

$

678,000

 

$(

2,815,000

)

Basic Earnings/(Loss) per Share

 

$(

0.56

)

$(

0.93

)

$

0.86

 

$(

3.56

)

Weighted average shares

outstanding

   

790,313

   

790,313

   

790,313

   

790,313

 
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