The disposal of the JV Company with extremely thin profit margin would bring the Group net of approximately RMB47 million and that will be used as general working capital, allowing the Group to focus its resources on its healthcare IT (“HIT”) related business which the Group considers should provide better return to the Group.

To echo the healthcare reform announced by the Chinese government in April 2009 that enacts RMB850 billion Healthcare Reform nationwide, China Public Healthcare entered the market of HIT last year and has taken up the market rapidly. At present, its wholly-owned operation subsidiary Beijing Upway Science & Technology Development Co. Ltd. (“Upway”) secured preliminary contracts for constructing regional electronic medical records system (EMRs) for three cities, including Taiyuan and Xinzhou in Shanxi Province, Lang Fang District in Hebei Province, that preliminarily will cover 330 medical institutions with an estimated contract value reaching approximately RMB409 million.

The Group’s another operation subsidiary, China Chief Medical Standards Database Co., Ltd. (“CCMSD”) launches remote medical consultation services project in Fuxin of Liaoning Province that covers 81 medical institutions with an estimated annual service fee of approximately RMB48 million.

The healthcare reform announced by the Chinese government in April 2009 calls for RMB850 billion for safer and more affordable HIT for China's 1.3 billion citizens by 2011. It is estimated that hospital budgets for HIT investments could amount to RMB246 billion, 3% of the total hospital revenues.

For further information of the company or arrangement of meeting the management, please contact Investor Relations Miss Angel angel@joviancomm.com.