Concord Medical to Acquire A 52% Equity Interest in Chang An Hospital Updates on Progress of

Concord Medical to Acquire A 52% Equity Interest in Chang An Hospital

Updates on Progress of CCICC

BEIJING, January 6, 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 that it has, through its subsidiaries, entered into agreements to

acquire a total of 52% equity interest in Chang An Hospital (the Hospital ), a licensed

full-service private hospital, from certain shareholders of the Hospital for a total consideration

of approximately RMB 200 million. The closing of this acquisition is subject to satisfactory due

diligence by the Company of the Hospital and relevant government approval.

Concord Medical has been managing Chang An Hospital under an entrusted management contract since

August 2008. In July 2010, Concord Medical formed Chang An CMS International Cancer Center

( CCICC ), a specialized cancer diagnosis and treatment center consisting of over 300 hospital beds

in Xi an, with the Hospital by acquiring a 52% equity interests in the Hospital s cancer treatment

facilities. The acquisition of a controlling equity interest in the Hospital is driven by robust

demand for cancer diagnosis and treatment services in the region. The acquisition furthers the

development of CCICC by giving Concord Medical effective control over the full capacity of 1,100

beds in the Hospital. After this acquisition, Concord Medical plans to transform Chang An Hospital

into a full-service hospital with a special focus on cancer diagnosis and treatment services.

Preliminary operation results at CCICC have been very encouraging. Dr. Jianyu Yang, director,

president and chief executive officer of Concord Medical commented. We see this acquisition as

another step forward toward building our first specialized cancer treatment hospital in China, in

which we will be able to serve more patients with better services. We are committed to our strategy

of expanding our treatment network while improving operational efficiency and advancing our

About Concord Medical

Concord Medical operates the largest network of radiotherapy and diagnostic imaging centers in

China in terms of revenues and the total number of centers in operation per available statistics.

The Company currently operates a network of more than 111 centers spanning 41 cities and 23

provinces and administrative regions in China. Under long-term arrangements with top-tier hospitals

in China, the Company provides radiotherapy and diagnostic imaging equipments and manages the daily

operations of these centers located on its hospital partners premises. The Company also provides

ongoing training to doctors and other medical personnel in its network of centers to ensure a high

level of clinical care for patients.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute

forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of

1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995.

These forward-looking statements can be identified by terminology such as anticipate, believe,

estimate, expect, forecast, intend, may, plan, project, predict, should and

will and similar expressions. These forward looking statements are based upon management s

current views and expectations with respect to future events and are not a guarantee of future

performance. Furthermore, these statements are, by their nature, subject to a number of risks and

uncertainties that could cause actual performance and results to differ materially from those

discussed in the forward-looking statements as a result of a number of factors. Such factors

include: the number of new radiotherapy and diagnostic imaging centers opened; the increase in the

number of patients in existing centers; the establishment of specialty cancer hospitals; changes in

the healthcare industry in China, including changes in the healthcare policies and regulations of

the PRC government; and technological or therapeutic changes affecting the field of cancer

treatment and diagnostic imaging. Further information regarding these and other risks is included

in the Company s filings with the U.S. Securities and Exchange Commission at www.sec.gov. The

Company does not undertake any obligation to update any forward-looking statement, except as

required under applicable law.

For investor and media inquiries please contact:

Concord Medical Services

Brunswick Group, LLC

Brunswick Group, LLC