Chindex International Inc., an independent American provider of Western healthcare products and medical services in the People's Republic of China, today announced that it intends to close down its retail pharmacy distribution
business so that it can concentrate on its core businesses of health care
services and medical equipment distribution. The close down process is
expected to be substantially completed by December 31, 2005.

    Roberta Lipson, Chindex CEO, said: "The retail products distribution
business model has not proven to be a good producer for our company.  It has not contributed to the bottom line and has consumed cash.  Although we had an enviable national distribution platform, the margin structure of distributing on behalf of other companies did not allow for a sustainable business and we have found that developing and rolling out our own national brands required more cash than we had anticipated. We do plan however, to retain a logistics capability to service the distribution needs of our ongoing businesses in both the Healthcare Services and Medical Capital Equipment segments.

    "This necessary and forward looking step will ease the strain on cash flow
and stop the drain from the bottom line. It will also allow management to
focus management and other resources on our company's profitable and growing businesses in health care services and medical equipment distribution."

    Chindex is an American healthcare company which owns and operates the only foreign invested and managed international standard hospitals and affiliated ambulatory clinics in the People's Republic of China serving both
International and Chinese patients with premium quality and service.