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CHINDEX INTERNATIONAL, INC.
Announces 3rd Quarter Results

BETHESDA, MARYLAND (November 14, 2001)....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 third quarter and nine month results.

Revenue for this year's third quarter was $13.4 million with net income of $109,000 or basic earnings per share of $0.13. This compares to revenue of $9.4 million with a net loss of $302,000 or a loss per share of $0.38 for the same period last year.

Revenue for this year's nine-month period was $37.3 million with a net loss of $91,000 or a loss per share of $0.11. This compares to revenue of $25.9 million with a net loss of $535,000 or a loss per share of $0.67 for the same period last year.

Roberta Lipson, Chindex President and CEO, commented on the Company's results and growth trends:

"Chindex continues to be a leader in healthcare in China. Profitable results this quarter were attributable to increased revenues in all our business units. While these results show a significant improvement over the prior year, our business continues to operate on an annualized basis. We expect to experience period to period fluctuations as we have in the past. We have historically seen strong growth trends in our businesses over time and we believe we are well positioned for the future.

"We were very pleased to announce recently the Chinese Ministry of Health approval of our next hospital. This venture, located in Shanghai, will be modeled on our success at Beijing United Family Hospital which continues to show growing revenues and profitability, and has been described as a model for private healthcare in China by the Chinese Ministry of Health.

"The capital medical equipment business unit is working on the current phase of our ongoing financing program. As we have in the past, we are able to offer Chinese customers an attractive financing package with which to purchase our portfolio of the best medical products in the world today. Over the last 20 years Chindex has been a leader in introducing cutting edge medical technologies to the Chinese healthcare markets.

"Results from the distribution business unit serving the hospital, retail pharmacy and logistics markets continue to grow. We will launch new product lines into our established retail pharmacy distribution network in the near future. We have formed a new imaging products group within the distribution business unit which will capitalize on Chindex's 20 years of investment in medical imaging technologies. This group will offer exciting new popularly-priced products, made possible by revolutionary technological advances in the industry," 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, a Siemens company, (Acuson brand diagnostic ultrasound scanners), Becton-Dickinson (including vascular access, infusion and critical care systems), Johnson & Johnson (clinical chemistry analyzers), Guidant (interventional cardiology products including stents, balloon catheters, and guide wires), Siemens Medical Systems (Sonoline brand of color doppler ultrasound scanners) and Tyco Healthcare Products. It also provides healthcare services through the operations of its private hospital corporation in China. With twenty years of experience, approximately 370 employees, and operations in the United States, mainland 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 websites, www.chindex.com and www.beijingunited.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

September 30,

 

Nine Months Ended

September 30,

 
     

2001

   

2000

   

2001

   

2000

 
Total sales and service revenue  

$

13,447,000

 

$

9,430,000

 

$

37,254,000

 

$

25,932,000

 
                           
Cost and Expenses                          

Cost of goods and services

   

9,040,000

   

6,128,000

   

24,975,000

   

16,949,000

 

Salaries and payroll taxes

   

2,559,000

   

1,951,000

   

7,237,000

   

5,442,000

 

Travel and entertainment

   

544,000

   

500,000

   

1,418,000

   

1,190,000

 

Other

   

1,256,000

   

1,175,000

   

3,852,000

   

3,252,000

 
      ----------     ----------     ------------     ------------  
Total Costs and Expenses     13,999,000     9,754,000     37,482,000     26,833,000  
                           
Income/(loss) from operations  

 

48,000

 

(

324,000

)

(

228,000

)

(

901,000

)

                           

Minority Interest

 
(

5,000

)
(

6,000

) (

14,000

)
(

32,000

)
                           
Other income and (expenses)    

 

 

 

 

 

 

 

 

 

 

 

Interest expense
 
(
5,000
)
(
17,000
) (
9,000
)
(
75,000
)

Interest income

   
24,000
   
27,000
   
105,000
   
110,000
 

Miscellaneous income - net

   
116,000
   
99,000
   
314,000
   
482,000
 
      ----------     ----------     ------------     ------------  

Income/(loss) before income taxes

 

 

178,000

 

(

221,000

)

 

168,000

 

(

416,000

)

                           

Provision for income taxes

 

(

69,000

)

(

81,000

)

(

259,000

)

(

119,000

)
      ----------     ----------     ------------     ------------  
Net income/(loss)  

$

109,000

 

$(

302,000

)

$(

91,000

)

$(

535,000

)

Net income/(loss) per common share - basic  
$

0.13

 
$(
0.38
)
(
0.11
)
(
0.67
)
Weighted average shares outstanding - basic    
851,069
   
802,600
   
851,069
   
794,498
 

Net income/(loss) per common share - diluted

 

 

0.12

 

(

0.38

)

(

0.11

)

(

0.67

)

Weighted average shares outstanding - diluted    

886,392

   

802,600

   

851,069

   

794,498

 
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