GM Hospital Group acquires Beijing hospital facility for HK$600,000,000

Golden Meditech Holdings Limited ("Golden Meditech," together with its subsidiaries collectively as the "Group," - 801.HK; 910801.TW), is pleased to announce the acquisition of a hospital facility in Beijing's Haidian District for a total consideration of HK$600,000,000.

The acquisition target, with a site area of approximately 18,692 m2 and permissible construction area of 74,035 m2 will be completed in 2012.  Upon completion of the acquisition, the GM Hospital Group will effectively own 57.91% of the new hospital.  The new facility has obtained the relevant regulatory approvals for the construction of a 500-bed general hospital, five times the current capacity of 100-beds in the Group's existing Daopei Hospital in Beijing, which will be able to relieve the shortage in bed spaces and cater to patients who are seeking to be admitted based on the hospital's strong reputation.  This will both expand the scale of Beijing Daopei Hospital and further strengthen the Group's market presence in the hospital management market.  

GM Hospital Group is the first foreign entity to be granted a nationwide hospital management license.  It currently operates one of China's most renowned haematology hospitals under the Daopei brand name, located in Beijing and Shanghai respectively.  In view of the growing demand and near maximum utilization at the Beijing hospital, the Management, upon prudent evaluation, deems it a suitable time to expand the Beijing hospital and resolve the shortage in bed spaces as well as further enhance its position as a leading healthcare service provider in Beijing.  

Mr. KAM Yuen, Chairman of the Group said, "We are happy to announce the acquisition of a readily available, partially-constructed, hospital building that is ideally located in the Haidian district in Beijing.  Furthermore, the project has already obtained relevant regulatory approval for the construction of a 500-bed hospital.  Construction is well underway, and the facility is expected to be completed and operational by the first half of 2012. The new hospital will be the largest haematology hospital in China in terms of number of beds."  

Mr. Kam reiterated that the acquisition is a significant move for the Group to develop its haematology business and into other specialist areas.  He reiterated, "The acquisition will further strengthen the Group's leadership position in premium healthcare and specialist medical services, facilitate considerable growth in hospital management business, and help the Group to achieve balanced growth for the Group's business portfolio, as a truly integrated healthcare enterprise in China."