Hong Kong, January 4, 2002 - Medical Services and management group Town Health International Holdings Company Limited (HKGEM: 8138) today annouces that on January 4, 2002, agreements were entered into among Origin Limited ("Origin"), the Group's substantial shareholder, Kingsway SW Securities Limtied, the placing agent, and the Company for a placing of existing shares . The Placing agent agreed with Origin to place 115,000,000 exsiting shares at a price of HK$0.25 per share on behalf of Origin, and Origin entered into a conditional agreement with the Company for the subscription of 115,000,000 new shares at the same price. The 115,000,000 new shares represent about 19.97% of the Company's existing issued share capital, or 16.64% of the issued share capital enlarged by the subscription. Origin currently holds about 31.33% of the Company's issued share capital, and its shareholding will be 26.12% immediately after the placing and subscription.

The fund raised from placement is primarily for the establishment of a comprehensive "one-stop" center (the "Center") for medical, pharmaceuticals and healthcare related services at the city hub of Shatin. Covering a floor area of approximately 9,000 sq. ft., the Center is expected to become fully operational in mid-2002.

To further facilitate the long-term development of the Center as well as the Group's business, a "Healthcare Club" will be set up in March 2002 and all patients of the Group's medical and dental clinics will have the privilege to be the club members. The "Healthcare Club" will regularly provide members with free medical information, organize seminars, and offer a series of consumption benefits and privileged medical related services such as body examination, cancer prevention and investigation. The Group believes that this concept of consolidating different businesses into a comprehensive medical services center is set to increase overall economy of scale, and also enhance its unique image of being an institutional operator of comprehensive "one-stop" medical services.

Diversified services on offer at the comprehensive "one-stop" center for medical, pharmaceuticals and healthcare related services:

1. 24-hour integrated medical services and comprehensive healthcare and dental services. There are also specialist services in ophthalmology, ear, nose and throat (ENT specialist), gynaecology, orthopedics, psychiatrics, dermatology, physiotherapy, psychotherapy and plastic surgery.

2. Town Health's "Wai Yuen Tong" franchises will offer the "Wai Yuen Tong" range of products and other over-the-counter pharmaceuticals. It will also provide Chinese medical consultation and herbal medicine processing services. Also on offer include holistic massage and acupuncture treatment.

3. Town Health's pharmaceuticals store will provide prescribed and over-the-counter medicines (including "Madame Pearl's" range of products) and other related products.

4. The Group's branded health foods will be on offer through concessionary stores.

5. Soups and meals with medical benefits, herbal remedial teas for colds and other healthy cuisines will be provided at Town Heath eateries.

6. "Healthcare Club" will regularly provide members with free medical information, seminars, healthcare examination and cancer prevention and investigation services, etc.

7. Other related services include: one-stop hEarning centre which will provide prescription of hEarning aids, molding of hEarning devices and after-sales consultation and device maintenance services; optician's practice; skin care and weight loss services; foot care and therapy and DNA cancer testing services, etc.

The Group firmly believes that this plan will not only provide Hong Kong people a comprehensive "one-stop" center for medical and healthcare services, but also further facilitate the Group's strategic development and expansion of its business. The "Healthcare Club" concept also helps foster and strengthen a community spirit among members. The Group's information, and latest offerings of medical, pharmaceuticals and healthcare related services will be communicated to members through regular bulletins, allowing more effective and comprehensive marketing and promotion. This platform plays an important role in encouraging members to participate in various healthcare activities and further consolidating and expanding the Group's entire business.

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 :
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Stella To or Veronica Yum
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