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Town Health and Ping An Insurance (Group) Company of China, Ltd. Join Forces to Develop and Manage Clinic Chain in Pearl River Delta Area
Date:4/9/2008

Town Health to Grant Call Option to Subscribe for 19.99% New Shares of Town

Health to Ping An Trust Co.

Making Strides Towards Establishing China Medical Services Business

HONG KONG, April 9, 2008 /Xinhua-PRNewswire/ -- Town Health International Holdings Co. Ltd, one of the largest medical service groups in Hong Kong, ("Town Health" or the "Group"; SEHK: 8138) announced that on 29 March 2008, (i) the Group, Guangdong Town Health Hospital Management Limited ("Guangdong Town Health") (as the agent of the Group) and Ping An Trust & Investment Co. Ltd. ("Ping An Trust Co."), a subsidiary of Ping An Insurance (Group) Company of China, Ltd. ("Ping An Group"; SEHK: 2318) entered into an exclusive cooperation agreement to develop and manage clinic chain in Guangdong(in particular the Pearl River Delta area); and (ii) the Group entered into a call option agreement with Ping An Trust Co to subscribe new shares of the Group. An application has been made to the Stock Exchange for the resumption of trading in the shares with effect from 9:30 a.m. on 7 April 2008.

Miss Crystal Choi, the Chairman of Town Health, said, "The development of this clinic chain project carries multiple implications for Town Health. Firstly, to operate and manage clinic chain is Town Health's utmost core business in Hong Kong. Leveraging the successful business model in Hong Kong, the business expansion to Mainland China, a market which is 185 times of Hong Kong, marks a new milestone and direction for Town Health business profile. If the clinic chain is launched successfully in the mainland China market, it will also generate new important revenue sources to the Group. Secondly, the join forces will bring synergistic effect for its existing operations and induce growth in all business segments of Town Health. Lastly, promoting high quality clinic chain to the mainland China will also be a contribution of Town Health to China's medical reform, improving an
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SOURCE Town Health International Holdings Co. Ltd.
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