Concord Medical to establish cancer hospital in Shanghai New Hongqiao International Medical Center

Concord Medical Services Holdings Limited ("Concord Medical" or the "Company") (NYSE: CCM), a leading specialty hospital management solution provider and operator of the largest network of radiotherapy and diagnostic imaging centers in China, today announced the Company will establish Shanghai Concord Cancer Hospital ("Shanghai Concord") - a premium cancer hospital - in Shanghai New Hongqiao International Medical Center.

Shanghai Concord plans to open 400 beds and adapts the domestic and internationally advanced therapeutic methods, medical process and management system. It plans to install the most advanced cancer diagnosis and treatment equipment and multidiscipline system.  When completed, the hospital will become a leading cancer hospital in China and Asia.

So far, the Company has received the relevant government approval for the establishment of Shanghai Concord.  The Company is in the process of finalizing the design and other pre-construction work. The construction is scheduled to start in the first half of 2015.  The total construction period will be three years.

Recently, the Chinese government has issued several policies to encourage social capital into the healthcare services industry, including "Several Opinions to Accelerate the Social Investment in Healthcare Services" and "The State Council's Several Opinions to Promote the Development of the Healthcare Services Industry". By 2015, China's non-public medical institution beds and services will reach 20% of the total number of medical institutions. Local governments also have issued relevant detailed rules for the implementation. The approval process for setting up private medical institutions is clarified gradually. Healthcare services will become a new major growth sector in China's economy.

In early 2013, the National Cancer Registry Center released the latest version of the "2012 Chinese Cancer Registry Annual Report", showing that China's new cancer cases are about 3.12 million and cancer deaths are more than 2 million annually. By 2020, China will have a total of 4 million new cases and a total of 6 million cancer patients each year. Cancer has become a major challenge facing China's healthcare industry.

Based on 17-year experience in cancer treatment and diagnosis, Concord Medical will introduce the most advanced cancer diagnosis and treatment equipment, cooperate with the international renowned medical institutions, innovate the hospital operation management mode, and fully motivate the enthusiasm of doctors.

"The establishment of specialized, premium cancer hospital is an important component of our development strategy and also is highly consistent with the Chinese government policies encouraging private capital to enter the medical service industry."  Dr. Jianyu Yang, the Chairman and CEO of Concord Medical, said, "As the most economically developed area in China, Shanghai possesses the most abundant medical and human resources in China. It is a very significant milestone for Concord Medical to build a leading cancer hospital in Shanghai."

Dr. Jianyu Yang also said, "During the process, we have received strong support and guidance from Shanghai New Hongqiao International Medical Center, which represent a new direction for China's healthcare reform.  After the construction of Shanghai Concord Cancer Hospital is completed, Concord Medical will become a leading hospital group, including cancer hospitals in Shanghai and Guangzhou and more than 140 existing cancer diagnosis and radiotherapy centers covering the whole country."