Hong Kong, December 10, 2001 - Medical and healthcare group Town Health International Holdings Company Limited today announces a series of investment plans to further extend and develop its scope of business in medical and healthcare services. Venture Asia Limited ("Venture Asia"), the Group's 100% owned subsidiary company has entered into an agreement with National Center for Traditional Chinese Medicine, State Administration of Traditional Chinese Medicine, P.R.C. ("National Center for TCM") and Info Kingdom Company Limited to set up a joint venture company to research, develop, produce and sell pharmaceutical and healthcare products. The Group has also entered into an agreement with Kowloon HEarning Services Limited to form a business alliance for joint development of audiological healthcare services.

Headquartered in Beijing, National Center for TCM operates under the State Administration of Traditional Chinese Medicine with the mission to promote, and develop Chinese pharmaceutical and healthcare related products and technological advancement. The newly established joint venture will have its business focuses on research and development of pharmaceutical healthcare products including traditional Chinese medicine, provision of consultation services for healthcare products registration in and out of China, healthcare business analyses services, as well as healthcare related sales strategic advisory and technological support services.

"The cooperation between Town Health and our center will benefit Town Health to leverage on the mainland's professional experience, resources and huge market in Chinese medicine in the research and development of pharmaceutical and healthcare products for the China market. In addition, our center will play a supporting role in assisting Town Health to develop its new products and effectively enhancing its capability for future development." Commented Mr Yu Wen Ming, Director, National Center for Traditional Chinese Medicine, State Administration of Traditional Chinese Medicine, P.R.C.

"To complement the Group's business in providing 'holistic' healthcare services and capitalizing on the enormous potential of the China market, it has always been the Group's strategy to expand and integrate the manufacture and sales of pharmaceutical and healthcare products with its core business. Through its interest in Wai Yuen Tong Medicine Company Limited and Luxembourg Medicine Company Limited, the manufacturer of the renowned Madame Pearl coughing syrup, the Group has successfully ventured into the manufacture and sale business of well-established branded pharmaceutical products. The Group has engineered plans to leverage on the intangible values of the brand names as well as the existing sales and distribution channels of these products. The joint venture with the National Center for TCM will further enhance the Group's research and development capabilities in future development of pharmaceutical and healthcare products in the China market," noted Dr Roy Cho, Chairman, Town Health International Holdings Limited.

Established 9 years ago, Kowloon HEarning Services Limited ("Kowloon HEarning") principally engages in the provision of professional audiological and related services. With its recognized expertise operating two hEarning services centres for the provision of general audiological services, Kowloon HEarning also engages in the selling of advanced and high quality digital hEarning instruments and related audiological equipment. It is also the exclusive agent of Siemen's hEarning instruments and devices. A one-stop shop for audiological services, Kowloon HEarning provides comprehensive services including audiological assessment tests, diagnostic audiological services in relation to hEarning problems and hEarning consultation services, professional fitting of appropriate hEarning instruments, professional advice on the use of hEarning instruments including post-fitting counseling services, manufacture of custom made ear moulds and in-the-ear hEarning instruments as well as repair and maintenance services for hEarning instruments and ear moulds.

"According to the March 31, 2000 statistics of the Hong Kong Government Health and Welfare Bureau, about 5% of Hong Kong people suffered from different degree of hEarning impairment problems among which there was a considerable number of people belonging to the working population with age ranging from 18 to 50. In the nationwide survey done in 1987, 4% of the population in China were found to have hEarning problems," remarked Mr Lai Kwok Fai, Director, Kowloon HEarning Services Limited.

"When we are aware of an eyesight problem, we go to an optician to have an eyesight test and subsequently we may need to wear a pair of spectacles to help us to achieve a better vision. Along the same line, when we have hEarning problems, we should take audiological assessment tests and use the appropriate hEarning aids and equipment to help us to hear better. However, due to the lack of audiological healthcare knowledge coupled with the rarely available audiological assessment tests and related services in the market, hEarning problems have seldom been properly addressed. The Group holds a view that there is a general shortage of such services in Hong Kong and there is a huge market potential for audiological services and related business. In cooperation with Kowloon HEarning, the Group aims to provide professional audiological assessment tests and hEarning related healthcare services to our patients as well as the community at large, hence bringing the Group a step forward to achieve our mission in providing comprehensive medical and healthcare services," added Dr Roy Cho.

The Group is also considering the possibility of extending audiological and related healthcare services to China.

"With China's entry into WTO, together with the gradual opening up of the mainland's healthcare market in the restructuring of the medical and healthcare system, it is envisaged that there will be a surge of demand for healthcare services. Capitalizing on the management and professional experience in the medical and healthcare industry, the Group will utilize the funds raised from its shareholders under a prudent principle and continue to seek investment opportunities to further develop, expand and extend the Group's business operations in the medical and healthcare related businesses in Hong Kong and China," concluded Dr Roy Cho.

Town Health International Holdings Company Limited (HKGEM: 8138) is a medical services and management group with a network of Town Health Centres, currently comprising over 30 medical and dental centres strategically located in Hong Kong serving over 420,000 patients. The Group is also directly engaged in various healthcare-related businesses with the corporate objective of becoming a comprehensive private healthcare services provider.

Issued by :
Town Health International Holdings Company Limited

Through :
t6.communications limited
Stella To / Veronica Yum
tel: (852) 2511 8388 / fax (852) 2511 8238
email: enquiry-at-t6pr.com (use "@" to replace "-at-")
URL : http://www.t6pr.com