BETHESDA, MARYLAND (November 18, 1999) . . . . Chindex International, Inc. (NASDAQ: CHDX) (U.S.-China Industrial Exchange, Inc.), the leading independent American company providing Western healthcare products and services in the People's Republic of China, today commented on the impact the recently announced trade agreement between the United States and China will have on its business in the future.
In a statement from the Chindex offices in Beijing, Roberta Lipson, President and CEO, said:
"After nearly 20 years of supplying healthcare products and services to the Chinese marketplace, we at Chindex were extremely pleased to see the WTO trade agreement signed earlier this week. We congratulate both the U.S. and Chinese negotiators who have brought this agreement into reality.
"We believe that the common basis for market access and transparency of regulation will only serve to further enhance our growth programs at Chindex in both the healthcare products and services segments of our business. In both areas we have achieved our success over these eighteen years in spite of significant regulatory obstacles impacting foreign businesses here. Over time the implementation of the WTO agreements should address these more fundamental obstacles which have restricted foreign investment in industries such as healthcare and distribution.
"We expect to see positive impact on our business in several specific areas. Reduced tariff rates on a large portion of the products we sell to the hospital and retail pharmacy markets will make these imported Western products less expensive to our customers. Increased access for foreign companies in the distribution industry should result in wonderful opportunities for Chindex to greatly expand our logistics activities nationwide. Entry of foreign insurance companies into the China market should allow us to jointly develop healthcare insurance products for the local markets, increasing the access of the Chinese population to our hospitals and letting us take full advantage of our lead in hospital development.
"As the leading independent American healthcare company in China today, we have established unique infrastructure assets on the ground in China which are the foundation of our business. We believe that Chinas implementation of the WTO agreements will provide a significantly enhanced business environment for Chindex going forward."
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, Guidant, and Tyco Healthcare Products. It also provides healthcare services through the operations of it's private hospital corporation in China. With over eighteen years of 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. Further company information may be found at the Chindex 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, the actual impact of the WTO agreement, availability of 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.
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