Concord Medical Announces Fourth Quarter and Fiscal Year 2010 Financial Results Full Year Revenues up 33%, Company Opens 33 New Centers in 2010 BEIJING

Concord Medical Announces Fourth Quarter and Fiscal Year 2010 Financial Results Full Year Revenues

up 33%, Company Opens 33 New Centers in 2010

BEIJING, March 28, 2011 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 its unaudited consolidated financial results for the fourth

quarter and fiscal year ended December 31, 2010(1), the Company s first full year of

operations since completing its IPO in December 2009, underwritten by Morgan Stanley, J.P. Morgan

Fourth Quarter and Fiscal Year 2010 Highlights

We are pleased to report a year of solid financial and operational growth in 2010, the first full

year of operations since our IPO and listing on the NYSE in December 2009, underwritten by Morgan

Stanley, J.P. Morgan and CICC, said Dr. Jianyu Yang, director, president and chief executive

officer of Concord Medical. In 2010, revenues grew 33% year-over-year to RMB389.5 million while we

brought the total number of centers in our network to 119 by adding 33 centers in the year. In

2011, we will continue to grow our already established center network and are committed to meeting

our target of operating 200 centers by the end of 2012. In addition, Concord Medical will focus

more resources on expanding our network of standalone facilities such as our Chang An CMS

International Cancer Center and our Beijing Proton Medical Center.

The government continues to encourage private investment into the healthcare system in China,

continued Dr. Yang. In December 2010, we saw more specific guidelines such as prioritizing private

investment in new projects, extending medical insurance coverage to treatment through private

providers and allowing talent transfer between private and public hospitals. Combining the

increasingly favorable macroeconomic conditions with our effective marketing and execution efforts,

we are confident that Concord Medical is well on its way to achieving greater success.

Dr. Yang added, In the fourth quarter of 2010, we had healthy top line growth despite a drop in

patient volume in the first week of October caused in part by the Golden Week holiday. Our

operating and net margins for year 2010 were also affected by costs and expenses associated with

being a public company. We expect this impact to diminish over time as our business increases in

scale. Looking forward, we will focus on continuing to enhance operational and financial efficiency

while further expanding our network.

On July 12, 2010, Concord Medical announced it entered into a joint venture agreement with Chang An

Hospital and commenced preliminary operations of Chang An CMS International Cancer Center ( CCICC )

in anticipation of obtaining a clinical license for CCICC. As of this announcement, CCICC had not

received such license. On January 6, 2011, Concord Medical announced that it entered into

agreements to acquire a total of 52% of the equity interest in Chang An Hospital from certain

shareholders of the Hospital for an aggregate consideration of approximately RMB200 million,

subject to satisfactory due diligence and relevant government approval. The acquisition is intended

to expand the development of CCICC by consolidating the full capacity of the Hospital into CCICC, a

cancer specialty hospital with a focus on cancer diagnosis and treatment services.

Concord Medical completed its share repurchase program in the fourth quarter 2010. During the

fourth quarter of 2010, the Company repurchased 719,626 ADSs, representing 2,158,878 ordinary

shares, for an aggregate consideration of $5.274 million, inclusive of fees. Since the inception of

the share repurchase program in July 2010, the Company has repurchased a total of 1,700,656 ADSs,

representing 5,101,968 ordinary shares, for an aggregate consideration of $11.552 million,

inclusive of fees. As of December 31, 2010, the Company had a total of 17.4 million ADSs

outstanding, representing 52.2 million ordinary shares, or 37% of its outstanding ordinary shares.

Fourth Quarter 2010 Results

Concord Medical reported total net revenues of RMB112.9 million ($17.1 million) for the fourth

quarter of 2010, a 30.1% increase from the corresponding period in 2009, primarily due to an

increase in patient cases from existing centers and the opening of new centers, as well as income

from the preliminary operation of CCICC.

Cost of revenues in the fourth quarter of 2010 was RMB31.3 million (US$4.7 million), a 25.2%

increase from the corresponding period in 2009, primarily due to an increase in depreciation costs

related to new equipment added in 2010.

Gross profit margin in the fourth quarter of 2010 was 72.2% as compared to 66.2% in the third

quarter of 2010 and 71.2% in the corresponding period in 2009. The lower gross profit margin in the

third quarter of 2010 was mostly due to depreciation and amortization from business expansion.

Operating expenses, consisting of selling expenses and general and administrative expenses, were

RMB30.1 million ($4.6 million) in the fourth quarter of 2010 as compared to RMB17.3 million in the

previous quarter and RMB13.3 million in the corresponding period in 2009. The quarter-over-quarter

increase was primarily due to a government grant in the previous quarter, increases in office and

travel expenses, and operating expenses related to the preliminary operation of CCICC. The

year-over-year increase was primarily due to increases in professional expenses associated with

being a public company, increases in headcount, office and travel expenses, share-based

compensation charges, and operating expenses related to the preliminary operation of CCICC.

Operating income was RMB51.4 million ($7.8 million) in the fourth quarter of 2010, representing a

6.3% increase from the corresponding period in 2009. Operating income excluding share-based

compensation expenses (non-GAAP) was RMB53.2 million ($8.1 million), a 7.7% increase from the

corresponding period in 2009.

Income tax expense in the fourth quarter of 2010 was RMB10.1 million ($1.5 million), compared to an

income tax expense of RMB10.7 million in the corresponding period in 2009. The effective tax rate

for the fourth quarter of 2010 was 18.8% as compared to 27.0% in the third quarter of 2010 and

22.9% for the corresponding period in 2009. The decrease in effective tax rate was mainly due to

the resolution of a previously accrued uncertain tax position amounting to RMB6.2 million.

Net income in the fourth quarter of 2010 was RMB43.7 million ($6.6 million), representing an 21.8%

increase from the corresponding period in 2009. Both basic and diluted earnings per ADS for the

fourth quarter of 2010 amounted to RMB0.87 ($0.13).

Non-GAAP net income in the fourth quarter of 2010 was RMB45.5 million ($6.9 million), a 23.3%

increase from the corresponding period in 2009. Both non-GAAP basic and diluted earnings per ADS in

the fourth quarter of 2010 amounted to RMB0.91 ($0.14).

Adjusted EBITDA (non-GAAP), was RMB80.6 million ($12.2 million) for the fourth quarter of 2010,

representing an 11.8% increase from the corresponding period in 2009.

As of December 31, 2010, the Company had total fixed assets valued at RMB925.3 million ($140.2

million), cash and cash equivalents of RMB535.8 million ($81.2 million), and restricted cash of RMB

117.7 million ($17.8 million).

As of December 31, 2010, the Company had bank credit lines totaling RMB2.2 billion (US$335

million), of which RMB241.1 million ($36.5) were utilized.

Accounts receivable was RMB169.4 million ($25.7 million) as of December 31, 2010, compared to

RMB149.5 million as of September 30, 2010 and RMB111.3 million as of December 31, 2009. Days sales

outstanding was approximately 127 days in the fourth quarter of 2010, unchanged from 127 days in

the third quarter of 2010.

Fiscal Year 2010 Results

Total net revenues in 2010 were RMB389.5 million ($59.0 million), representing a 33.2% increase

from RMB292.4 million in 2009, primarily due to an increase in patient cases from existing centers

and the opening of new centers, as well as income from the preliminary operation of CCICC.

Cost of revenues in 2010 was RMB122.7 million (US$18.6 million), representing a 40.1% increase from

RMB87.6 million in 2009, primarily due to the increased depreciation cost related to the opening of

new centers and the resulting increase in salaries and benefits to additional personnel employed

and assigned to the new centers.

Gross profit margin in 2010 was 68.5%, compared to 70.1% in 2009. This decrease was primarily due