Concord Medical signs definitive agreement to acquire 100% equity interest in Tianjin Kangmeng Radiology

Concord Medical Services Holdings Limited ("Concord Medical" or the "Company") (NYSE: CCM), operator of the largest network of radiotherapy and diagnostic imaging centers in China, today announced that its wholly-owned subsidiary, Shenzhen Aohua Medical Device Leasing Co., Ltd., has entered into a definitive agreement to acquire 100% of the equity interest in Tianjin Kangmeng Radiology Equipment Management Co., Ltd. ("Tianjin Kangmeng Radiology"), a company that manages four radiotherapy and diagnostic imaging centers in Hebei province.

Under the terms of the agreement, Concord Medical will continue to manage these four centers which are equipped with one PET-CT scanner, one IGRT system, one Head Gamma Knife system and one ECT scanner, jointly with Tianjin Kangmeng Radiology's current hospital partner. These four centers have been in operation since July 2009. Prior to the acquisition, Concord Medical had been managing two centers in Hebei province.

"By adding four well-established centers, we are further strengthening Concord Medical's presence in northern China, an important market for cancer treatment. We are confident that this acquisition will contribute to our growth for years to come," said Dr. Jianyu Yang, director, president and chief executive officer of Concord Medical. "As the industry leader with the largest network of radiotherapy and diagnostic imaging centers in China, Concord Medical should continue to benefit from industry consolidation as Chinese patients increasingly look to established players for advanced, reliable cancer treatment."

In 2009, Concord Medical opened 16 new centers, bringing the total number of radiotherapy and diagnostic centers in its network to 88 covering 36 cities in China, as of December 31, 2009.

Cancer was the leading cause of death in China in 2008, accounting for over 2 million deaths which represented about 26% of total deaths, according to the Ministry of Health in China. Furthermore, Frost & Sullivan estimates that new cancer cases in China are expected to increase at a compounded annual growth rate of 2.6% from 2008 to 2015, compared with 1.5% in the U.S. However, China has a low penetration of radiotherapy equipments: 0.7 linear accelerators per one million people compared with 9.5 linear accelerators per one million people in the U.S. in 2008.