Singapore, June 17, 2010: Chindex International, an American provider of Western healthcare products and services in China, and Shanghai Fosun Pharmaceutical, a manufacturer and distributor of western and Chinese medicine and devices in China, have entered into a strategic alliance to utilize respective strengths in China's medical device industry.

The strategic alliance includes the agreement on basic terms by Fosun Pharma and Chindex to form Chindex Medical Limited, a joint venture (JV) focused on manufacturing and distributing medical devices in China. The JV would merge and operate Chindex's medical products division and certain of Fosun Pharma's medical device businesses in China. The JV would be owned 51 percent by Fosun Pharma and 49 percent by Chindex.

The strategic alliance also includes a definitive agreement by Fosun Pharma to purchase from Chindex up to 1,990,447 shares of Chindex common stock at $15 per share, which when aggregated with other Chindex shares owned by Fosun Pharma would gain Fosun Pharma up to 4,229,701 shares, representing a 25 percent ownership stake in Chindex.

The stock sale is expected to raise an aggregate of approximately $30 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.

Under the terms of the agreement, the sale of the shares of common stock would be completed in two closings, the first of which is expected to occur in the second quarter of the current fiscal year, subject to certain customary closing conditions, and would relate to approximately one-half of the shares to be purchased. The closing of the balance of the shares would occur subject to the consummation of the JV as well as certain customary closing conditions.

In connection with the transactions, until the occurrence of certain events, Fosun Pharma has agreed to certain voting and standstill limitations.

Roberta Lipson, President and CEO of Chindex said, "We are delighted to forge this landmark partnership with Fosun Pharma and 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. This strategic alliance is mutually beneficial for several reasons and we are particularly excited about launching Chindex Medical Limited. Fosun Pharma already operates business 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, "Fosun Pharma is pleased to be partnering with Chindex, including establishing Chindex Medical Limited. We look forward to leveraging both companies' strengths to consummate and grow the venture in the future. We believe that United Family Healthcare is the leading private premium healthcare services brand in the country today.”