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CHINDEX INTERNATIONAL, INC.
Announces $0.15 Per Share Earnings For 2nd Quarter

And First Ever Profitable Results For Beijing United Family Hospital

BETHESDA, MARYLAND – August 14, 2000 - 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 its second quarter and six month results including the first profitable quarterly results for its unique private hospital venture in Beijing.

Revenue for this year's second quarter was $9.5 million with net income of $116,000 or earnings per share of $0.15. This compares to revenue of $13.2 million with net income of $817,000 or earnings per share of $1.03 for the same period last year.

Revenue for this year's six-month period was $16.5 million with a net loss of $233,000 or a loss per share of $0.29. This compares to revenue of $22.7 million with net income of $1.1 million or earnings per share of $1.42 for the same period last year.

The Company noted that its current loan financing program guaranteed by the U.S. Export - Import Bank for the capital equipment portion of its Healthcare Products segment is nearing completion. Assuming all final approvals are received, shipments of the first traunche of the program are expected to begin later this year. The second traunche of contracts under the financing authorization will follow. The 1999 six-month results included $11.7 million in revenues from the Company's prior Ex-Im financing transaction.

For the first period since its inception in 1997 the Company's Healthcare Services segment, composed of the operations of its Beijing United Family Hospital, reported an operating profit of $155,000 in the second quarter. The Company pioneered privatized healthcare in China with the opening of its unique foreign-invested hospital which is still the only such venture operating with Chinese government approval.

"With our Healthcare Services segment showing profitable results this quarter we have proved that our formula for private healthcare services in China works. We are very pleased to see Beijing United growing rapidly, and moving into profitability after just over two years of operations. The results have been improving significantly every quarter. We are expanding the operations of the current hospital and are well along in development plans for our next phase of investment in this segment of our business," noted Roberta Lipson, Chindex President and CEO.

"Our growth in distribution to the hospital, retail pharmacy and logistics markets is also continuing to accelerate rapidly. We have announced new agreements with major
multi-national clients this year which are already contributing to our results. In addition we are preparing to begin several new product launches to the retail pharmacy markets later this year. It is a very exciting growth period for our distribution business," Lipson concluded.

Chindex is a leading American company in healthcare in the Greater Chinese marketplace including Hong Kong. It provides representative and distribution services to a number of major multinational companies including Acuson (diagnostic ultrasound scanners), Johnson & Johnson (clinical chemistry analyzers), Guidant (interventional cardiology products including stents, balloon catheters, and guide wires), Becton Dickinson (including hypodermic needles and syringes, infusion therapy systems, critical care systems, preanalytical solutions, and consumer healthcare products) and Tyco/Kendall Healthcare Products (including brands such as Davis & Geck, Sherwood, Kendall, Sheridan, and Curity). It also provides healthcare services through the operations of its private hospital corporation in China. With nearly twenty years of experience, approximately 330 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 the Company's (i) performance goals, including successful conclusion of efforts to secure government-backed financing, (ii) future events and earnings, including revenues from the Company's developmental businesses such as healthcare services, (iii) markets, including growth in demand in China for the Company's products and services, and (iv) proposed new operations, including expansion of its healthcare services business. 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

June 30,

 

Nine Months Ended

June 30,

 
     

2000

   

1999

   

2000

   

1999

 
Total Sales and Service Revenue  

$

9,462,000

 

$

13,240,000

 

$

16,502,000

 

$

22,645,000

 
                           
Cost and Expenses                          
Cost of goods and services sold    

6,217,000

   

9,501,000

   

10,821,000

   

16,202,000

 

Salaries and payroll taxes

   

1,919,000

   

1,815,000

   

3,491,000

   

3,255,000

 
Travel and entertainment    

411,000

   

340,000

   

690,000

   

601,000

 
Other    

1,116,000

   

1,028,000

   

2,077,000

   

1,902,000

 
Income/(Loss) from Operations  
(
201,000
)
  556,000   ( 577,000 )   685,000  
Minority Interest  
(

3,000

)
(

18,000

)
(

26,000

)
(

18,000

)
Other Income and (expenses)    
                   
Interest expense  

(

36,000

)

 

8,000

 

(

58,000

)

 

0

 

Interest income    
39,000
   
170,000
   
83,000
   
170,000
 

Miscellaneous income - net

   

273,000

   

135,000

   

383,000

   

337,000

 
                           
   

 

 

 

 

 

 

 

 

 

 

 

Income /(Loss) Before Income Taxes

 

 

72,000

 

 

851,000

 

(

195,000

)

 

1,174,000

 

Benefit/(Provision) for Income Taxes

 

 

44,000

 

(

34,000

)

(

38,000

)

(

51,000

)
Net Income/(Loss)  

$

116,000

 

$

817,000

 

$(

233,000

)

$

1,123,000

 

Net income/(loss) loss per common share- basic and diluted

 

$

0.15

 

$

1.03

 

$(

0.29

)

$

1.42

 

Weighted average shares outstanding - basic and diluted    

790,557

   

790,313

   

790,435

   

790,313

 

 

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