Concord Medical Enters into Joint Venture Agreement with Chang'An Hospital

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Concord Medical Services Holdings Limited

Jul 12, 2010, 06:00 ET

BEIJING, July 12 /PRNewswire-Asia-FirstCall/ -- Concord Medical Services Holdings Limited ("Concord Medical" or the "Company") (NYSE: CCM), the operator of the largest network of radiotherapy and diagnostic imaging centers in China, today announced that effective as of July 1, 2010 it has entered into a joint venture with Chang'An Hospital for the operation of Chang'An Hospital's cancer treatment facilities by acquiring a 52% equity interest in Xi'an Wan Jie Hua Xiang Medical Technology Development Limited ("Wan Hua Tech"). Wan Hua Tech owns the land and building of Chang'An Hospital's cancer treatment facilities, which will be used for Chang'An CMS International Cancer Center (CCICC)'s future full operation. The purchase price for this acquisition is RMB103 million. Upon the acquisition, Concord Medical will be able to assume the preliminary operation of Chang'An Hospital's cancer treatment facilities to provide services to Chang'An Hospital.

During the preliminary operating period for Chang'An Hospital's cancer treatment facilities while waiting for the clinical license, the primary focus of the Chang'An Hospital's cancer treatment facilities will be on transitioning Chang'An Hospital cancer diagnosis and treatment facilities to CCICC, recruiting doctors and nurses and purchasing additional equipment. The selling equity holder of Wan Hua Tech is responsible for obtaining the clinical license, which will allow Concord Medical to provide cancer diagnosis and treatment services directly to patients.

About Concord Medical

Concord Medical operates the largest network of radiotherapy and diagnostic imaging facilities in China in terms of revenues and the total number of facilities in operation per available statistics. The Company currently operates a network of more than 89 centers spanning 37 cities and 21 provinces and administrative regions in China. Under long-term arrangements with top-tier hospitals in China, the Company provides radiotherapy and diagnostic imaging equipments and manages the daily operations of its centers located on its hospital partners' premises. The Company provides ongoing training to doctors and other medical personnel in its network to ensure a high level of clinical care for patients.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions. These forward looking statements are based upon management's current views and expectations with respect to future events and are not a guarantee of future performance. Furthermore, these statements are, by their nature, subject to a number of risks and uncertainties that could cause actual performance and results to differ materially from those discussed in the forward-looking statements as a result of a number of factors. Such factors include: the number of new radiotherapy and diagnostic imaging centers opened; the increase in the number of patients in existing centers; the establishment of specialty cancer hospitals; changes in the healthcare industry in China, including changes in the healthcare policies and regulations of the PRC government; and technological or therapeutic changes affecting the field of cancer treatment and diagnostic imaging. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission at www.sec.gov. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

    For investor and media inquiries please contact:

    China

     Stephanie Song
     Concord Medical Services
     Tel:   +86-10-5957-5287
     Email: [email protected]

     Lilian Wong
     Brunswick Group, LLC
     Tel:   +86-10-6566-2256
     Email: [email protected]

    U.S.

     Nicki Kahner
     Brunswick Group, LLC
     Tel:   +1-212-333-3810
     Email: [email protected]

SOURCE Concord Medical Services Holdings Limited