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Concord Medical Enters into Joint Venture Agreement with Chang'An Hospital
Date:7/12/2010

BEIJING, July 12 /PRNewswire-Asia-FirstCall/ -- Concord Medical Services Holdings Limited ("Concord Medical" or the "Company") (NYSE: CCM), the operator of the largest network of radiotherapy and diagnostic imaging centers in China, today announced that effective as of July 1, 2010 it has entered into a joint venture with Chang'An Hospital for the operation of Chang'An Hospital's cancer treatment facilities by acquiring a 52% equity interest in Xi'an Wan Jie Hua Xiang Medical Technology Development Limited ("Wan Hua Tech"). Wan Hua Tech owns the land and building of Chang'An Hospital's cancer treatment facilities, which will be used for Chang'An CMS International Cancer Center (CCICC)'s future full operation. The purchase price for this acquisition is RMB103 million. Upon the acquisition, Concord Medical will be able to assume the preliminary operation of Chang'An Hospital's cancer treatment facilities to provide services to Chang'An Hospital.

During the preliminary operating period for Chang'An Hospital's cancer treatment facilities while waiting for the clinical license, the primary focus of the Chang'An Hospital's cancer treatment facilities will be on transitioning Chang'An Hospital cancer diagnosis and treatment facilities to CCICC, recruiting doctors and nurses and purchasing additional equipment. The selling equity holder of Wan Hua Tech is responsible for obtaining the clinical license, which will allow Concord Medical to provide cancer diagnosis and treatment services directly to patients.

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