Health Management In : HMI records full year revenue growth of 23% to RM 174 million for FY2011

PRESS RELEASE

HMI records full year revenue growth of 23% toRM 174 million for FY2011

Highlights

? Group achieved net profit attributable to equity holders of RM 2.0 million

? Operating profit improved by 3%

? Total patient load from both hospitals grew by 15%

FINANCIAL HIGHLIGHTS	FY2011	FY2010	Change
FINANCIAL HIGHLIGHTS	RM'000	RM'000	%
Turnover	173,884	140,846	23
Gross Profit	43,381	35,330	23
Operating Profit	6,759	6,546	3
Profit before Income Tax	10,171	3,943	158
Net Profit Attributable to Equity Holders	1,958	(2,924)	n.m
Gross Profit Margin (%)	25%	25%	n.m
Return on Equity (%)	2.3%	-4.4%	n.m
Basic Earnings per Share (cents)	0.36	(0.57)	n.m

Singapore, 25 August 2011 ? Health Management International Ltd. (?HMI?, or the ?Group?), a regional private healthcare provider, announced a net profit for the Group and attributable to equity holders of RM

7.0 million and RM 2.0 million respectively for the financial year ended 30 June 2011 (?FY2011?).

Revenue increased by 23% from RM 140.8 million in FY2010 to 173.9 million in FY2011, due to revenue growth of 20% and 98% from the Group?s flagship hospital in Malacca, the Mahkota Medical Centre

(?Mahkota?) and the Regency Specialist Hospital (?Regency?) respectively.

Due to fewer courses launched for vocational skills training as well as nursing programmes, the Group's healthcare education segment registered a decrease in turnover of RM 0.7 million.

With the higher patient load and a wider range of medical specialties in both hospitals, operating profit improved by 3% to RM 6.8 million. Profit before tax rose substantially by 158% due to the fair value gain of the investment properties held by the subsidiaries of RM 6.8 million.

As such, HMI achieved a Group profit of RM 7.0 for FY2011, reversing a prior-year loss of RM 1.6 million. The profit attributable to equity holders was RM 2.0 million, also reversing the loss of RM 2.9 million in FY2010.

For FY2011, the earnings per share and return on shareholders? equity were 0.36 cents and 2.3% respectively. The Group?s net gearing also reduced to 0.92, largely due to the higher share capital resulted from the rights offering in September 2010. Cash and cash equivalents rose 59% to RM 11.2 million as at 30 June 2011.

Dr Gan See Khem, Executive Chairman, said, ?We are pleased to announce a positive report on our performance for FY2011, particularly that of Regency Specialist Hospital which has not only maintained its growth track but has also increased awareness and its brand positioning within the local population. We will continue to focus on the expansion and continuous improvement of our healthcare business regionally and generate long term sustainable returns for our shareholders.?

Operation Review

Mahkota Medical Centre

In FY2011, Mahkota Medical Centre increased its pool of doctors with eight specialist consultants, a medical officer and a dental officer. With that, the range of services available in Mahkota has widened with new disciplines like neurology, endocrinology and sub specialties in areas such as breast surgery.

Mahkota also made significant progress towards enhancing the patient environment and experience over the year. To maintain the fresh look of the hospital, renovation works of the front lobby was completed over year. Car park space was further increased by 100 lots so as to provide greater convenience to patients.

As Mahkota expands its network, patient load continues to witness a healthy growth as local and foreign patients grew 7.4% and 22.4% respectively. The strengthening of the Singapore dollar and Indonesian rupiah has also encouraged more Indonesians to seek medical treatment in Malaysia, where patients can get more cost-effective treatments as compared with Singapore.

Regency Specialist Hospital

Since Regency Specialist Hospital began its operations in November 2008, the Group has leveraged on its experience gained from managing Mahkota and efforts to recruit doctors and qualified nurses were prioritised as they play an integral role in increasing patient load. As at end of June 2011, the total number of full-time and part-time doctors has grown to a reasonable size of 23.

The hospital also witnessed another year of significant growth. In FY2011, turnover from Regency doubled to RM 19 million on the back of a 57% increase in patient load. Currently in its third year of operations, Regency is on course to becoming the second engine of growth for the Group.

The Group will continue to intensify its marketing activities with its 20 patient representative offices in the region and attract patients to its hospitals, as well as focus on student recruitment and education innovation initiatives to attract students to its education institutes.

Looking ahead

Dr Gan commented about the healthcare industry, ?In 2008 and 2009, revenue from Mahkota Medical Centre continued to grow despite the financial crisis. Similarly, reputable hospitals across the region observed the same trend as well. With the increasing penetration rates of private healthcare insurance in Malaysia, as well as an increasing recognition of Malaysian healthcare standards, we continue to see an increase in the number of Indonesian patients seeking lower cost alternatives for their healthcare needs in Malaysia. As such, we believe that the impact that a volatile external economic environment may have on the earnings of our hospitals will be minimal.?

The elevation of Johor?s Senai Airport as a regional air-hub, coupled with the expected completion of the Coastal Highway in 2011 and the Eastern Dispersal Link in 2012 will improve accessibility to our Regency Specialist hospital in the Iskandar Region of Johor. Regency Specialist Hospital may also benefit from the tax and fiscal incentives announced for Iskandar.

The healthcare landscape is projected to remain competitive, with additional beds of new public and private hospitals coming on stream in the short to medium term.

The Group will continue its efforts to grow its regional footprint by expanding its network of representative offices. We will also be offering more services and procedures through the expansion of facilities and medical expertise in Southern Malaysia.

About Health Management International Ltd.

Health Management International Ltd. (?HMI?) is a regional private healthcare provider with presence in Singapore, Malaysia, Indonesia and Cambodia. The Group core business lies in healthcare, and comprises two hospitals in Malaysia, the Mahkota Medical Centre in Malacca and the Regency Specialist Hospital in Johor, and a network of 20 patient referral centres in Indonesia, Malaysia, Cambodia and Singapore.

Disclaimer

This release may contain statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. You are cautioned not to place undue reliance on such statements, which are based in the current views of Management on future developments and events.

For more information, kindly contact:

Ms Chin Wei Jia Mr Desmond Ng

Group General Manager Investor Relations Executive

Tel: [phone] Tel: [phone]

Email: [e-mail],sg Email: [e-mail]