Fosun Pharma increases investment in Chindex

Chindex International, Inc. ("Chindex") (Nasdaq: CHDX), a leading independent American provider of Western healthcare products and services in the People's Republic of China, and Shanghai Fosun Pharmaceutical (Group) Co., Ltd. ("Fosun Pharma"), a leading manufacturer and distributor of western and Chinese medicine and devices in China, today announced that they have consummated a previously-announced stock sale.

The closing is part of the strategic alliance between Fosun Pharma and Chindex to form Chindex Medical Limited (the "Joint Venture"), a joint venture focused on manufacturing and distributing medical devices in China. The Joint Venture would merge and operate Chindex's Medical Products division and certain of Fosun Pharma's medical device businesses in China. The Joint Venture would be owned 51% by Fosun Pharma and 49% by Chindex. The closing of the Joint Venture is subject to the final negotiation and execution of definitive documents.

Today's closing of 933,022 shares of Chindex common stock at $15 per share is one of two separate planned purchases by Fosun Pharma from Chindex of a total of up to 1,990,447 shares, all at $15 per share. Today's closing increases Fosun Pharma's current ownership of Chindex to 3,157,163 shares, representing 19.9% of all outstanding shares of Chindex common stock of all classes. A second transaction for 1,057,425 shares, when aggregated with other Chindex shares owned by Fosun Pharma, would gain Fosun Pharma up to 4,214,588 shares, representing approximately a 25% ownership stake in Chindex, is subject to the consummation of the Joint Venture as well as certain other closing conditions. In connection with the purchases and the Joint Venture, Fosun Pharma has agreed to certain voting and standstill limitations and certain other stockholder limitations. Today's stock sale and the proposed final closing are expected to raise an aggregate of approximately $30.0 million, the net proceeds of which are expected to be used, among other things, to continue expansion of the Company's United Family Healthcare network.

Roberta Lipson, President and CEO of Chindex said, "We are pleased to see our arrangements with Fosun progressing as planned and announced. We welcome their participation and expertise as one of our major shareholders. Their credibility and presence in China is an asset to us as we execute our plan to build the leading network of premium care hospitals and clinics across the country. We continue to work towards the consummation of our previously- announced joint venture with Fosun Pharma in medical device manufacture and distribution. Fosun Pharma already operates in this area, and the addition of our medical products division is a great fit which should drive scale and a deeper presence across China."

Chen Qiyu, Chairman of Fosun Pharma said, "We are happy to be increasing our investment in Chindex. Fosun Pharma and Chindex are combining our strengths in healthcare and look forward to growing together in the future. We believe the demand for premium healthcare services which is served by Chindex's United Family Healthcare will continue to accelerate as China's economy grows. We are also excited about our future joint venture with Chindex in medical devices which we believe will leverage the value of the Chindex brand name in China's healthcare industry."