Chindex International, Inc. Announces $1.03 Per Share Second Quarter Earnings - Third Consecutive Profitable Quarter.

BETHESDA, Md.--(BUSINESS WIRE)--Aug. 16, 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 its third consecutive profitable quarterly results.

Revenue for this year's second quarter was $13.2 million with net income of $817,000 or earnings per share of $1.03. This compares to revenue of $5.5 million with net loss of $671,000 or a loss per share of $0.85 for the same period last year.

Revenue for this year's six month period was $22.7 million with net income of $1.1 million or earnings per share of $1.42. This compares to revenue of $8.4 million with a net loss of $2.1 million or a loss per share of $2.63 for the same period last year.

"We continue to show extremely positive improvements in our results so far this year. This quarter was one of our best ever as we completed delivery of equipment financed under our previously announced $14 million Export-Import Bank loan program," Roberta Lipson, President and CEO of Chindex, commented in Beijing. "Our next loan program for the sale of up to $30 million of capital medical equipment is progressing nicely."

"We are also seeing excellent performance in our other healthcare products business as well as our healthcare services segment."

"We have recently announced continuing expansions of our healthcare products business in specialized cardiology markets in both consumable and capital equipment products. This is a tremendously lucrative market segment here in China and we are aggressively developing this product grouping at Chindex."

"Our healthcare services segment is expanding rapidly as well. Our flagship private hospital, Beijing United, is showing dramatic increases in revenue in its second year of operations and we are currently developing expansion plans for the Shanghai area. Our hospital is still the only operating foreign-invested hospital approved by the Chinese government, " 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 -0-

                     CHINDEX INTERNATIONAL, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)

                   Three Months                 Six Months
                  Ended June 30,               Ended June 30,
                1999         1998            1999          1998
           ---------------------------------------------------------
Total Net
 Revenue    $13,240,000   $5,508,000    $ 22,645,000    $ 8,421,000

Cost and
 Expenses
 Cost of
  goods
  sold        9,501,000    3,564,000      16,202,000      5,702,000
 Salaries
  and payroll
  taxes       1,815,000    1,233,000       3,255,000      2,407,000
 Travel and
  enter-
  tainment      340,000      483,000         601,000        756,000
 Other        1,028,000    1,198,000       1,902,000      2,085,000

           ---------------------------------------------------------
Total Costs
 and
 Expenses    12,684,000    6,478,000      21,960,000     10,950,000

Income/(Loss)
 from
 Operations     556,000     (970,000)        685,000     (2,529,000)

Other Income
 and Expenses,
 net            313,000      302,000         507,000        495,000

Minority
  Interest      (18,000)           0         (18,000)             0
           ---------------------------------------------------------

Income/(Loss)
 Before
 Provision
 for Taxes      851,000     (668,000)      1,174,000     (2,034,000)
Provision for
 Income Taxes   (34,000)      (3,000)        (51,000)       (44,000)
           ---------------------------------------------------------
Net Income
 /(Loss)      $ 817,000    $(671,000)    $ 1,123,000    $(2,078,000)
           =========================================================
Net Income/
 (Loss)loss
 per Share    $    1.03    $   (0.85)    $      1.42    $     (2.63)
           =========================================================
Weighted
 average
 shares
 outstanding    790,313      790,313         790,313        790,313
           =========================================================