1. 2007-01-03Ver 111 Wenzhou Gangan International Hospital Business Prospective Prepared by Chen Minghua Financing Manager Wenzhou Gangan International Hospital Co., Ltd. 2007-01-03 Version 11

2. 2007-01-03Ver 112 To be founded, developed and managed By the right developer – an energetic and young entrepreneur with long vision together with other Christian church leaders and members of China, Hong Kong and the U.S.;By the right developer – an energetic and young entrepreneur with long vision together with other Christian church leaders and members of China, Hong Kong and the U.S.; For the right clients - the upper-income group in Wenzhou and the surrounding regions with a clientele population of about 3 to 4 million while the total population is about 24.5 million (Wenzhou alone has 10 million people), which is expected to generate about RMB 500 million to 2 billion of revenue a year once in normal operation and 15% of after-tax profit on averageFor the right clients - the upper-income group in Wenzhou and the surrounding regions with a clientele population of about 3 to 4 million while the total population is about 24.5 million (Wenzhou alone has 10 million people), which is expected to generate about RMB 500 million to 2 billion of revenue a year once in normal operation and 15% of after-tax profit on average For the right objective – to become one of the first Chinese private hospital to be IPOed on international marketsFor the right objective – to become one of the first Chinese private hospital to be IPOed on international markets With the right orientation - a general acute hospital with an investment of US$ 55 mio, and 700 beds in two steps (320 first and 380 additional afterwards);With the right orientation - a general acute hospital with an investment of US$ 55 mio, and 700 beds in two steps (320 first and 380 additional afterwards); With the right scale – as one of the largest ongoing joint venture hospitals in Zhejiang, one of China ’ s richest provinces with a population of about 55 mio. to fight against the shortage of medical services in the city, which is far behind the national average, although it ’ s considered as one of the richest regions of China;With the right scale – as one of the largest ongoing joint venture hospitals in Zhejiang, one of China ’ s richest provinces with a population of about 55 mio. to fight against the shortage of medical services in the city, which is far behind the national average, although it ’ s considered as one of the richest regions of China; At the right place - China ’ s birthplace of private economy – Wenzhou, which has the unrivaled influence on the nation ’ s economy;At the right place - China ’ s birthplace of private economy – Wenzhou, which has the unrivaled influence on the nation ’ s economy; At the right time – when reform and privatization of the healthcare industry will be running on the right track at faster pace.At the right time – when reform and privatization of the healthcare industry will be running on the right track at faster pace.

3. 2007-01-03Ver 113 Project Data Sheet (1/2)  Project Name: Wenzhou Gangan International Hospital ( 温州港安国际医 院 )  Location: East part of the Yangfushan ( 杨府山 ) zone, near the Central Business District (CBD) of downtown Wenzhou, Zhejiang province, China  Developers: Zhejiang Calilee Telecommunications Technology Co., Ltd. ( 浙江加利利通 信科技有限公司 ), Hangzhou, China Health-Pro Hospital Management Co., Ltd., Hong Kong Type of Project: New hospital construction for initial funding of the construction of the hospital  Construction Period: 2007-2008  Construction Scheme: The hospital will be classified as the top level – level 3 class A, general acute care hospital, with its own primary and secondary care facilities in-house; providing a fully integrated healthcare service system, with a common podium and two separate in-patient towers, with a total beds of 700 in two phases, 320 beds for phase one and 380 beds extra for phase two. Land use of the hospital project: 24,300 m2, total building space: 83,300 m2.

4. 2007-01-03Ver 114 Project Data Sheet (2/2)  Functions: High level medical services, incl. integrated and special clinical services, integrating the medical treatment, education, research, rehabilitation, preventive medicare and healthcare.  Serviced Geographical Area: Wenzhou, Taizhou ( 台州 ), Lishui ( 丽水 ) of Zhejiang province and some parts of north Fujian province with a total population of ca 24.5 million  Total Investment: RMB 450 million or about US$ 57 million.  Fundraising: Initial capital, bank loan and equity loan from foreign investors  ROI (Return of Investment): About 10-15 years

5. 2007-01-03Ver 115 WHY??? (1/2) Why Investing in China?Why Investing in China? –China ’ s economy grows fast – 10.9% in 1 st half 2006 –China ’ s health industry grows even faster (1.2 times that of GDP growth rate) –China ’ s healthcare consumption at low level with huge potential Per capital medical fees only US$ 70 or 1/70 of the U.S.Per capital medical fees only US$ 70 or 1/70 of the U.S. Much of the population has no access to medical and insurance, leaving huge room for expansionMuch of the population has no access to medical and insurance, leaving huge room for expansion Health reform creates lucrative growing spaceHealth reform creates lucrative growing space

6. 2007-01-03Ver 116 WHY??? (2/2) Why Investing in Wenzhou?Why Investing in Wenzhou? –Home to China ’ s private economy, with higher population of middle class and well-being people, about 2 out of 10 million –Healthcare in relatively short supply, among the lowest level in China, quality at moderate level even in China ’ s standards Why Investing in Gangan International?Why Investing in Gangan International? –The only large-scale, general acute, top class joint-venture hospital under construction in Wenzhou and Zhejiang, no other choice –The only hospital in China founded by Adventist church leaders of China, Hong Kong and the U.S. –The only hospital with full government supports and commitments, incl. project approval, and land use We will prove the above in the next chapters

7. 2007-01-03Ver 117 Contacts Mr Chen Degai 陈德概 Vice president Project Head Tel : 0571-8725 1526 8725 1527 Fax:0571-8721 3284 Email: cdgjlm@yahoo.com.cn cdgjlm@yahoo.com.cn Mr Chen Minghua 陈明华 Financing manager Tel : 0571-8717 0240, 8725 1527 Fax:0571- 8721 3284 Email: chen_minghua888@163.comchen_minghua888@163.com Zhejiang Calilee Telecommunications Technology Co., Ltd. ( 浙江加利利通信科技有限公司 ) ( 浙江加利利通信科技有限公司 ) Address: Section A, 16/F, Golden Plaza, No. 118 Qingcun Rd. Hangzhou, China Postcode: 310003 Website: www.zjcalilee.com www.zjcalilee.com

8. 2007-01-03Ver 118 Confidentiality This business plan is the business property of the project company and its ownership belongs to Zhejiang Calilee Telecommunications Technology Co., Ltd.. ( 浙江加利利通信科技有限公司 ). Its use is limited only to those who intend (s) to sign investment intentions. Upon the reception of this document, the receiver shall comply with the following conditions: If the receiver does not wish to be involved in this project, he or she shall return this document to the address in full or remove it from his/her computer (s);If the receiver does not wish to be involved in this project, he or she shall return this document to the address in full or remove it from his/her computer (s); Without the formal and written permission of the project company, the receiver is not allowed to make copy, transfer, forward, disclose or spread contents of this document to any other body or organizations in full or in parts thereof;Without the formal and written permission of the project company, the receiver is not allowed to make copy, transfer, forward, disclose or spread contents of this document to any other body or organizations in full or in parts thereof; Violation of these conditions shall subject to compensation according to Chinese and international property laws and regulationsViolation of these conditions shall subject to compensation according to Chinese and international property laws and regulations

9. 2007-01-03Ver 119 Table of Contents (1/2) 1.The Entrepreneur 2.The Project Company and the Management Team 3.The Initiative 4.Mission and Objectives 5.Uniqueness 6.Status of Project Development 7.Clientele and Markets 8.Services & Technologies 9.The Hospital 11.Government Relations, Supports, Policies & Plans 12.Competition 13.Risks 14.Developing the Hospital 15.Managing the Hospital Operation 16.Marketing 17.Financial Plans 18.Feasibility & Conclusion

10. 2007-01-03Ver 1110 Table of Contents (2/2) 19.A little More about China Health and Wenzhou a)Industry Structure b)Current Status c)Opportunities d)Reform e)Investment Development f)Foreign Investment g)Private Hospitals h)Taxes and Laws i)Capital Markets j)Market Entry Barriers k)Problems l)Trends m)Wenzhou - location n)Wenzhou Economy o)Wenzhou Upper Income Group p)Wenzhou Health Industry This part of business plan is in another file

11. 2007-01-03Ver 1111 The Entrepreneur (1/3) Li Jie, chairman of board, Zhejiang Calilee Telecommunication Technology Ltd. A native Wenzhouer, started his business in late 1980 ’ s. Mr Li Jie ( 李捷 ), CEO and founder of Calilee Telecom, is the major investor in the hospital with another 11 members of the boards from China, Hongkong and the U.S. Together they form a strong financial, management and operational team for the project development and financing. Mr. Li Jie is also the deputy director of the Beijing Zhejiang Entrepreneur Federation ( 北京浙江企业 家联合会 ), the standing councilor of the Zhejiang Provincial Business Leaders Council ( 浙商理事 会 ) and the deputy director of the Zhejiang Society for Private Economy ( 浙江民营经济研究 会 ). Mr Li makes his own presentation, also refer to HBP_04Company.doc

12. 2007-01-03Ver 1112 The Entrepreneur (2/3) Over the last years, Mr Li Jie has been met by state leaders such as President Hu Jingtao, vice president Zeng Qinghong, premiere Wen Jiabao, and the chairman of the Political Council Jia Qinglin on various occasions. Mr. Li has also participated in the EU-China Business Summit, ASEAN Business and Investment Summit and China-Spain 1st Business Summit together with Chinese leaders an one of the excellent young entrepreneur. Mr Li Jie is a self-made businessman born in Cangnan, a suburban county of Wenzhou.He started his business back to the 1980’s and has now established his business in the mobile telecommunications sector. Calilee has achieved a 10-digit revenue (in RMB term) last year and is still expanding in its mobile business. revenue (in RMB term) last year and is still expanding in its mobile business. Calilee is also taping the real estates and now the health industry with its vast resources. Mr Li makes his own presentation, also refer to HBP_04Company.doc

13. 2007-01-03Ver 1113 The Entrepreneur (3/3) At the age of 36 he is among one of the young excellences in Wenzhou, and more than this, he is also pursuing a EMBA degree at Beijing University, one of China ’ s most prestigious universities. Mr Li Jie is the founder and major sponsor of the Hangzhou Wenxin Christian Church and has been also promoting Christian missionary in Wenzhou in a variety of ways. He spends lot of his time and skills in the management of the church and gospel missionary. He lives currently in Hangzhou with his wife, and two children: a little girl of 6 and a boy of 13.

14. 2007-01-03Ver 1114 Li Jie with Hu Jingtao China-Spain Summit in Madrid President Hu Jingtao and his Wife in Spain

15. 2007-01-03Ver 1115 Li Jie, Chinese Leaders & ASEAN Businessman Premiere Wen Jiabao Vice President Zeng Qinghong Political Council Chair Jia Qinglin Chairman of ASEAN Chamber of Commerce

16. 2007-01-03Ver 1116 Project Company and the Management Team (1/5) The Wenzhou Gangan International Hospital project was initiated and will be developed and managed by the following three parties:The Wenzhou Gangan International Hospital project was initiated and will be developed and managed by the following three parties: –Party A: Zhejiang Calilee Telecommunications Technology Co., Ltd. ( 浙江加利利通信科技有限公司 ), Hangzhou, China –Party B: Anhui Holdings Ltd., Niue of the United Kingdom –Party C: Health-Pro Hospital Management Co., Ltd., Hong Kong Party A is the Chinese partner, Party B is the foreign partner, and Party C is the technical and management provider. Among the three parties, the project company will be founded with Party A as the main initiator and developer. In addition, Loma Linda University and Hongkong Adventist Hospital will be providing technical supports as needed.Party A is the Chinese partner, Party B is the foreign partner, and Party C is the technical and management provider. Among the three parties, the project company will be founded with Party A as the main initiator and developer. In addition, Loma Linda University and Hongkong Adventist Hospital will be providing technical supports as needed. These three companies are also the current three corporate share holders of the future hospitalThese three companies are also the current three corporate share holders of the future hospital Mr Li makes his own presentation, also refer to HBP_04Company.doc

17. 2007-01-03Ver 1117 Project Company and the Management Team (2/5) Zhejiang Calilee Telecommunications Technology Co., Ltd. (hereafter Calilee Technology) was founded in August 1995, and is a modern private enterprise with its three main business areas in mobile telecommunications, large international hospitals and real estates. It is headquartered at the Golden Plaza at Qingcun Road, Hangzhou ’ s financial district, Zhejiang province, China. Over the past decade, the company has realized extraordinary achievements and has formed a sales and distribution network of mobile telephones in Zhejiang, Jiangsu, Jiangxi and Shaanxi provinces. The company has established close and strategic cooperation relationships with NOKIA, China Mobile and other famous international and Chinese brands. Based on its core business, Calilee Technology has also been expanding to medical, real estates and business, Calilee Technology has also been expanding to medical, real estates and manufacturing industries. Strategy: Considering the development trends of the national medical market, policy changes and other factors, the company has earlier decided to introduce the medical and health and other factors, the company has earlier decided to introduce the medical and health services to its overall development strategy, and thus has established its three core business areas-telecommunications, real estates and health services. The medical and healthcare industry has huge development potential, and is now on the eve of an explosive development. has huge development potential, and is now on the eve of an explosive development.

18. 2007-01-03Ver 1118 Project Company and the Management Team (3/5) Anhui Holding Ltd. is a multinational investment company registered in Niue, an United Kingdom territory, by Anhui Holding Ltd., Hong Kong. The company was founded on Aug.15, 2000, and focuses on the coal mining, transportation, construction, fishery, pharmaceuticals and other industries. Currently the company has a total asset of over US$ 800 million, and is now growing at a rate of over 20% annually, as such is a multinational investment corporation with strong capital capacity.Anhui Holding Ltd. is a multinational investment company registered in Niue, an United Kingdom territory, by Anhui Holding Ltd., Hong Kong. The company was founded on Aug.15, 2000, and focuses on the coal mining, transportation, construction, fishery, pharmaceuticals and other industries. Currently the company has a total asset of over US$ 800 million, and is now growing at a rate of over 20% annually, as such is a multinational investment corporation with strong capital capacity. Health-Pro Hospital Management Co., Ltd is a hospital management company based in Hong Kong, and is founded by several ex-presidents of Hongkong Adventist Hospitals, with their mission to advance quality healthcare management in China. The company is also being supported by Hongkong Adventist Hospital and Loma Linda University of the U.S.A.. For this project, Health-Pro will provide project management for planning, development and commissioning of the proposed integrated healthcare system and hospital and will operate the system and facility after that.Health-Pro Hospital Management Co., Ltd is a hospital management company based in Hong Kong, and is founded by several ex-presidents of Hongkong Adventist Hospitals, with their mission to advance quality healthcare management in China. The company is also being supported by Hongkong Adventist Hospital and Loma Linda University of the U.S.A.. For this project, Health-Pro will provide project management for planning, development and commissioning of the proposed integrated healthcare system and hospital and will operate the system and facility after that. (Other board members and Philip will add more comments and introduction about the project company and its management and operation)

19. 2007-01-03Ver 1119 Project Company and the Management Team (4/5) The Board of Directors of the future hospital A board of directors will be formed for the hospital construction and operation, major members are:A board of directors will be formed for the hospital construction and operation, major members are: –Chairman, Mr. Li Jie ( 李捷 ), founder and CEO of Zhejiang Calilee Telecommunications Technology Co., Ltd. ( 浙江加利利通信科技有限公司 ) –Vice chairman, Liang Huipao ( 梁辉跑 ), chairman of board of Hongkong-based Anhui Holdings Ltd. ( 香港安辉控股公司 ) –Mr. James Wu ( 胡子辉先生 ), chairman of board of Hongkong Adventist Hospital –Mr. Philip Wong ( 黄超杰 ), president of Healthpro Hospital Management Ltd. ( 香港 康博医疗有限公司 ) headquartered in Hongkong –Dr. C. Welch, representative of Loma Linda University ’ s Medical Center at Sir Run Run Shaw Hospital in Hangzhou –Mr. Randy Moeller, vice chairman of board of Hongkong-based Anhui Holdings Ltd. ( 香港安辉控股公司 ) Operation strategy and policy, investment plan, annual budgeting, appointment of the president or GM of the hospital and other important corporate decisions will be made by the board of directors.Operational day-to-day management will be undertaken by Healthpro Hospital Management Ltd.

20. 2007-01-03Ver 1120 Project Company and the Management Team (5/5) A little more about Calilee Mission and value: social responsibilitiesMission and value: social responsibilities Objective, targets:Objective, targets: Corporate strategy: telecommunications, healthcare and real estatesCorporate strategy: telecommunications, healthcare and real estates Core competence:Core competence: History:History: Corporate management: the board of directors, the management and organization chart, key personnelCorporate management: the board of directors, the management and organization chart, key personnel Relations with its partners and governmentsRelations with its partners and governments Major information about the company facilities, products/services, markets, clients and financial dataMajor information about the company facilities, products/services, markets, clients and financial data Li Jie makes his introduction

21. 2007-01-03Ver 1121 The Initiative (1/3) The founder becomes aware of the lack of high quality medical services, lack of investment and resources, the needs of the better healthcare services/technologies and the requirement to improve the health of the local people;The founder becomes aware of the lack of high quality medical services, lack of investment and resources, the needs of the better healthcare services/technologies and the requirement to improve the health of the local people; The founder regards the healthcare industry as one of the most promising industries in China over long term;The founder regards the healthcare industry as one of the most promising industries in China over long term; The founder considers the right time to enter the healthcare market as the reform goes on and privatization keeps warming up;The founder considers the right time to enter the healthcare market as the reform goes on and privatization keeps warming up; The founder considers to own the relevant resources, capital and government relations to execute the project, which many don ’ t have;The founder considers to own the relevant resources, capital and government relations to execute the project, which many don ’ t have; The founder wishes to promote the gospel missionary in combination with medical and healthcare servicesThe founder wishes to promote the gospel missionary in combination with medical and healthcare services Mr Li to supplement

22. 2007-01-03Ver 1122 The Initiative (2/3) And the hospital project was also initiated with regards of the government plan and government appeal in greater Wenzhou area, and of the confidence of the capability to fulfill the tasks of the perceived niche and needs by the initiating parties.And the hospital project was also initiated with regards of the government plan and government appeal in greater Wenzhou area, and of the confidence of the capability to fulfill the tasks of the perceived niche and needs by the initiating parties. According to the “Construction Outline for the Public Health Modernization of Zhejiang Province ”, by 2020, the average life expectation of the province shall reach over 75 years, the coverage of community health services shall reach over 80%, major health indices shall close to or reach those of the medium-developed nations, in order to realize the goal that people are able to enjoy high quality medical and healthcare services compatible with the modern living standards, and to achieve the target of the socalled “Powerful Health Province”.According to the “Construction Outline for the Public Health Modernization of Zhejiang Province ”, by 2020, the average life expectation of the province shall reach over 75 years, the coverage of community health services shall reach over 80%, major health indices shall close to or reach those of the medium-developed nations, in order to realize the goal that people are able to enjoy high quality medical and healthcare services compatible with the modern living standards, and to achieve the target of the socalled “Powerful Health Province”. Accordingly the Wenzhou municipal government has also set its own plan, the “Tenth Five-Year Plan and the 2010 Planning for the Public Health Program of Wenzhou City”. In this plan, it is pointed out that by 2005, Wenzhou shall have established a public health service system with optimized resource allocation, flexible operation mechanism, and sustainable development that meet the needs of people. As a result, major health indicators shall reach the advanced level in the country, close to those of the medium-developed nations, where the bed number of 2.41 per thousand people and the medical doctor number of 1.73 per thousand people shall be realized.Accordingly the Wenzhou municipal government has also set its own plan, the “Tenth Five-Year Plan and the 2010 Planning for the Public Health Program of Wenzhou City”. In this plan, it is pointed out that by 2005, Wenzhou shall have established a public health service system with optimized resource allocation, flexible operation mechanism, and sustainable development that meet the needs of people. As a result, major health indicators shall reach the advanced level in the country, close to those of the medium-developed nations, where the bed number of 2.41 per thousand people and the medical doctor number of 1.73 per thousand people shall be realized. Government Expectation

23. 2007-01-03Ver 1123 The Initiative (3/3) Although the health industry has been developing rapidly since the early 80 ’ s, but it hasn ’ t kept pace with the economic development. For example, during the 1996-2000 period, the municipal economy has been expanded by about 180%, but investment in the health industry has only been increased by 68%, accounting for only 2.6% of the GDP. Therefore, in order to achieve the planned targets, the health industry has to be restructured, and investment shall be intensified, health service resources shall also be reallocated and optimized, according to the administrative zoning, population distribution, health status map of the people as well as the situation of the local economic and social development.Although the health industry has been developing rapidly since the early 80 ’ s, but it hasn ’ t kept pace with the economic development. For example, during the 1996-2000 period, the municipal economy has been expanded by about 180%, but investment in the health industry has only been increased by 68%, accounting for only 2.6% of the GDP. Therefore, in order to achieve the planned targets, the health industry has to be restructured, and investment shall be intensified, health service resources shall also be reallocated and optimized, according to the administrative zoning, population distribution, health status map of the people as well as the situation of the local economic and social development. Therefore, the development of the Hospital will play an important role in the enhancement of the construction of the health and medical services, in the implementation of the regional health planning, in the overall development of the local health industry and also in the improvement of the health status of the people in the greater Wenzhou region.Therefore, the development of the Hospital will play an important role in the enhancement of the construction of the health and medical services, in the implementation of the regional health planning, in the overall development of the local health industry and also in the improvement of the health status of the people in the greater Wenzhou region.

24. 2007-01-03Ver 1124 Mission and Objectives (1/3) Build and operate an international standard hospital in Wenzhou and to upgrade the medical standards of the city and the surrounding regions – southern Zhejiang and northern Fujian Provide high quality international standards of patient-focused treatment, care & service that promotes value and wholistic healthcare and composes an integral part of the community, in order to meet the special needs of the wealthier classes and the expatriates living in Wenzhou Provide good investment returns to our investment partners while minimizing the risks Promote the Gospel missionary in an environment of service-central hospital Our campaign slogan: “ 港安国际医院, 你自己的医生 ! ” Respect, Compassion, Integrity & Teamwork During the development stage: The Development Stage covers the first five years of the project. During this stage, it is important to ensure promptness in getting various level of governmental approvals to maintain steady progress. The objectives for this stage are as follows: –Securing the land –Firming the Business Plan to ensure adequate financing is secured –Approval from Governmental Agencies –Organizing and appointing the Development Team –Signing off of Design Briefs –Preparing of Tendering Documents –Tedering bids –Ground Breaking Ceremony –Construction –Level-off Ceremony –Commissioning –Soft Opening

25. 2007-01-03Ver 1125 Mission and Objectives (2/3) In short term after operation (1-5 years), provide medical and healthcare services to 1/3 of the upper income group (about 600,000 people) and 1/10 of the average and low-income citizens (about 1 million) in the greater Wenzhou area and also open the hospital to public investors on the Chinese or overseas stock exchange marketIn short term after operation (1-5 years), provide medical and healthcare services to 1/3 of the upper income group (about 600,000 people) and 1/10 of the average and low-income citizens (about 1 million) in the greater Wenzhou area and also open the hospital to public investors on the Chinese or overseas stock exchange market In middle term (6 th to 10 th year), expand the services to the entire southern Zhejiang and northern Fuijan province on the same client bases with a clientele of about 1 million in the upper class and 2 million in the lower class. A new branch hospital is expected to be built in the regionIn middle term (6 th to 10 th year), expand the services to the entire southern Zhejiang and northern Fuijan province on the same client bases with a clientele of about 1 million in the upper class and 2 million in the lower class. A new branch hospital is expected to be built in the region In long run (within 15 th years till 2025), develop the name of “ Gangan ” into a well-know hospital brand throughout China and expand the hospital management group nationwide by acquiring the middle level hospitals and clinics and also by fundraising through IPOs in China and overseas. It is expected to become on of the 10 largest hospital and healthcare groups in China. Annual turnover will be about 20 billion RMB and net profit about 2 billion RMB, with about 100 hospitals around the country, each province with two to three.In long run (within 15 th years till 2025), develop the name of “ Gangan ” into a well-know hospital brand throughout China and expand the hospital management group nationwide by acquiring the middle level hospitals and clinics and also by fundraising through IPOs in China and overseas. It is expected to become on of the 10 largest hospital and healthcare groups in China. Annual turnover will be about 20 billion RMB and net profit about 2 billion RMB, with about 100 hospitals around the country, each province with two to three. Also refer to HBP_03Mission.doc

26. 2007-01-03Ver 1126 Mission and Objectives (3/3) Milestones:Milestones: –Before the financing is completed: Identify & secure the Yangpushan land: completedIdentify & secure the Yangpushan land: completed Establish a Development Office in Wenzhou: several people are already working there, mainly for the government relations.Establish a Development Office in Wenzhou: several people are already working there, mainly for the government relations. Appointment of a Lead Architect & Project Manager: end October 2006: the project transit team already established located at Calilee ’ s headquarters in HangzhouAppointment of a Lead Architect & Project Manager: end October 2006: the project transit team already established located at Calilee ’ s headquarters in Hangzhou Hospital Development Standards: to be decided before Dec.31, 2006Hospital Development Standards: to be decided before Dec.31, 2006 Fundraising: business plan to be finished by end June, final contract with investors to be concluded at end November. or early December 2006Fundraising: business plan to be finished by end June, final contract with investors to be concluded at end November. or early December 2006 –After the financing: Tendering for design, construction shall be preparedTendering for design, construction shall be prepared Personnel employment and staffing shall beginPersonnel employment and staffing shall begin

27. 2007-01-03Ver 1127 Wenzhou Concept: Wenzhou and people of Wenzhou are unique in China. The city is dominated by private economy (96%), the people are richer than most of the other regions of China, they are better skilled in doing business, trade and manufacturingWenzhou Concept: Wenzhou and people of Wenzhou are unique in China. The city is dominated by private economy (96%), the people are richer than most of the other regions of China, they are better skilled in doing business, trade and manufacturing Adventist Church Missionary Hospital: except one, all of the 12 board members are either leaders, founders or members of the Adventist churches in the United States, Hong Kong or mainland China. While earning money to meet the investment return targets, their mission is also to promote the Christianity in China. Wenzhou: China ’ s Jerusalem. People of Wenzhou not only spread their market economy ideas and invest their money in all corners of the country – perhaps also of the world, they also bring the gospel to the nation. Much of the Christian churches are built by people of Wenzhou.Adventist Church Missionary Hospital: except one, all of the 12 board members are either leaders, founders or members of the Adventist churches in the United States, Hong Kong or mainland China. While earning money to meet the investment return targets, their mission is also to promote the Christianity in China. Wenzhou: China ’ s Jerusalem. People of Wenzhou not only spread their market economy ideas and invest their money in all corners of the country – perhaps also of the world, they also bring the gospel to the nation. Much of the Christian churches are built by people of Wenzhou. Supermarket Mode for Low-Income People: for people with low incomes, the hospital will provide an aid fund to release their fear and financial burden faced by fatal or severe illnesses, and to reduce the medical cost and to improve the medical efficiency (by cutting of the waiting time), a supermarket mode of medical services for light diseases will be introduced, which is unique and unpracticed until now in China. This new service is expected to significantly reduce the waiting time and cut off the prices for medical treatment as well as to improve the medical treatment efficiencySupermarket Mode for Low-Income People: for people with low incomes, the hospital will provide an aid fund to release their fear and financial burden faced by fatal or severe illnesses, and to reduce the medical cost and to improve the medical efficiency (by cutting of the waiting time), a supermarket mode of medical services for light diseases will be introduced, which is unique and unpracticed until now in China. This new service is expected to significantly reduce the waiting time and cut off the prices for medical treatment as well as to improve the medical treatment efficiency Uniqueness

28. 2007-01-03Ver 1128 Status of Project Development Signing ceremony with the Wenzhou Municipal Government’s Bureau of Health for the authorization of the construction project was held on Nov.28, 2005 in Wenzhou, with the presence of major Liu Qi ( 刘奇 ) and vice major Meng Jianxin ( 孟建新 ). The hospital project is one of the 10 major foreign investment projects of the municipal government in 2005, and once completed, it will become the first large-scale joint venture hospital in the city.Signing ceremony with the Wenzhou Municipal Government’s Bureau of Health for the authorization of the construction project was held on Nov.28, 2005 in Wenzhou, with the presence of major Liu Qi ( 刘奇 ) and vice major Meng Jianxin ( 孟建新 ). The hospital project is one of the 10 major foreign investment projects of the municipal government in 2005, and once completed, it will become the first large-scale joint venture hospital in the city. Government approval: application for business license is going on at Ministry of Health and Wenzhou Municipal Development & Reform Commission and is expected to be completed before end of the year. Zhejiang Provincial Health Bureau has already OKed the projectGovernment approval: application for business license is going on at Ministry of Health and Wenzhou Municipal Development & Reform Commission and is expected to be completed before end of the year. Zhejiang Provincial Health Bureau has already OKed the project Land acquisition: land will be transferred by the government to the project company free of charge, price for the dismantling of the existing buildings and the compensation for the residents and organizations was settled with the government Land cleanup and dismantling have already been initiated with the government orders.Land acquisition: land will be transferred by the government to the project company free of charge, price for the dismantling of the existing buildings and the compensation for the residents and organizations was settled with the government Land cleanup and dismantling have already been initiated with the government orders. 2007 Development Plan: Government licensing, Land disposal, Locating of foreign partner, Design Tender, Construction, Employment of People will be carried out soon2007 Development Plan: Government licensing, Land disposal, Locating of foreign partner, Design Tender, Construction, Employment of People will be carried out soon

29. 2007-01-03Ver 1129 Clientele Upper income groups: entrepreneurs, private businessmen, white collars, management personnel, foreign expatriates and other high earning people with an annual income of over RMB 200,000.Upper income groups: entrepreneurs, private businessmen, white collars, management personnel, foreign expatriates and other high earning people with an annual income of over RMB 200,000. They are about 2 million of such people in Wenzhou alone, many more in the neighboring cities, towns and villagesThey are about 2 million of such people in Wenzhou alone, many more in the neighboring cities, towns and villages Those with severe illnesses and otherwise will travel to New York, Shanghai, Beijing or even Hangzhou, about 5% of the patientsThose with severe illnesses and otherwise will travel to New York, Shanghai, Beijing or even Hangzhou, about 5% of the patients Those who are native of Wenzhou but are doing business nationwide or even worldwide, about 2 mio. in all with a total asset of over RMB 200 billion and a per capita asset of 100,000 RMB YuanThose who are native of Wenzhou but are doing business nationwide or even worldwide, about 2 mio. in all with a total asset of over RMB 200 billion and a per capita asset of 100,000 RMB Yuan In all, the wealthier population served is about 4 million. We try to cover 1/3 of them, that is 1.33 million people, enough for a 700 bed hospital.In all, the wealthier population served is about 4 million. We try to cover 1/3 of them, that is 1.33 million people, enough for a 700 bed hospital. Those without medical insurances: 80 of the 5 million rural residents and 40% of the another 5 million urban people, all together: 6 million non-insured people. We try to attract 10% of them, or 600,000 people a yearThose without medical insurances: 80 of the 5 million rural residents and 40% of the another 5 million urban people, all together: 6 million non-insured people. We try to attract 10% of them, or 600,000 people a year If the above two classes are combined, we expect a client base of 1.93 million people in Wenzhou alone.If the above two classes are combined, we expect a client base of 1.93 million people in Wenzhou alone. Extended geographical service range: Wenzhou (10 mio.) and the neighboring regions, incl. Taizhou (6.5 mio), Lishui (3 mio.) and part of northern Fujian province (5 mio.), total 24.5 million people. Suppose 10% of them are classified as the upper income group, they are about 2.45 million.Extended geographical service range: Wenzhou (10 mio.) and the neighboring regions, incl. Taizhou (6.5 mio), Lishui (3 mio.) and part of northern Fujian province (5 mio.), total 24.5 million people. Suppose 10% of them are classified as the upper income group, they are about 2.45 million.

30. 2007-01-03Ver 1130 Markets (1/2) Definition of our business line: medical treatment and healthcare services of the entire health industry within the hospitals and its branches and clinics throughout the region, but excluding the production of medical equipments, medicine and pharmaceuticalsDefinition of our business line: medical treatment and healthcare services of the entire health industry within the hospitals and its branches and clinics throughout the region, but excluding the production of medical equipments, medicine and pharmaceuticals Size and demand of the healthcare industry: Its current market volume is about RMB 830 billion (2005) or per capita RMB 630. In Zhejiang this was RMB 965 (2004), in Wenzhou this will be higher (we have no data yet). We estimate the total healthcare market value of Wenzhou alone is about RMB 10 billion.Size and demand of the healthcare industry: Its current market volume is about RMB 830 billion (2005) or per capita RMB 630. In Zhejiang this was RMB 965 (2004), in Wenzhou this will be higher (we have no data yet). We estimate the total healthcare market value of Wenzhou alone is about RMB 10 billion. Market growth: we presume this part of the market has huge potential. It has been developing at a rate of 15% over the last 25 years, and will be maintaining that speed in the next years.Market growth: we presume this part of the market has huge potential. It has been developing at a rate of 15% over the last 25 years, and will be maintaining that speed in the next years. Profitability of the healthcare industry: 1/3 of them earn profits, 1/3 just make a balance and the rest of 1/3 losing moneyProfitability of the healthcare industry: 1/3 of them earn profits, 1/3 just make a balance and the rest of 1/3 losing money Typical investment return figure: 15%/year for a profitable hospitalTypical investment return figure: 15%/year for a profitable hospital Refer to HBP_08Market.doc and HBP_13OpMarketing.doc

31. 2007-01-03Ver 1131 Markets (2/2) Targeted market: the upper income groups in Wenzhou and the surrounding regions, with a client population of about 2.5 million among the 24.5 people in Wenzhou, Taizhou, Lishui and north Fujian. These groups will be further divided into several other levels: the very top, the wealthier entrepreneurs and the middleclass. Currently the first group is much treated by hospitals outside Wenzhou, while the second group is also unsatisfied with the current medical services-the environment, the service quality, the technology etc and the third group is expecting a more convenient access to the services and technologiesTargeted market: the upper income groups in Wenzhou and the surrounding regions, with a client population of about 2.5 million among the 24.5 people in Wenzhou, Taizhou, Lishui and north Fujian. These groups will be further divided into several other levels: the very top, the wealthier entrepreneurs and the middleclass. Currently the first group is much treated by hospitals outside Wenzhou, while the second group is also unsatisfied with the current medical services-the environment, the service quality, the technology etc and the third group is expecting a more convenient access to the services and technologies Why this kind of market segmentation: as a for-profit hospitals, we face strong competition from the state-woned and non-profit hospitals, as well as private hospitals, clinics and even private medical doctors. The main problems with the local healthcare market is the non-availability of high- quality, specialized medical services for the upper income gourps of Wenzhou, and this is what we determine to solveWhy this kind of market segmentation: as a for-profit hospitals, we face strong competition from the state-woned and non-profit hospitals, as well as private hospitals, clinics and even private medical doctors. The main problems with the local healthcare market is the non-availability of high- quality, specialized medical services for the upper income gourps of Wenzhou, and this is what we determine to solve Market volume, profit and earning, growth rate of the segmented medical services:Market volume, profit and earning, growth rate of the segmented medical services: Targeted revenues and profit forecasting and market shares:Targeted revenues and profit forecasting and market shares:

32. 2007-01-03Ver 1132 Services & Technologies (1/2) Targeted clients: upper income groups with annual income of over 200,000 RMB in Wenzhou. They are about 1.5 to 2 million in Wenzhou.Targeted clients: upper income groups with annual income of over 200,000 RMB in Wenzhou. They are about 1.5 to 2 million in Wenzhou. These people are willing to pay for quality and special medical services. Wewill provide the following services to them:These people are willing to pay for quality and special medical services. Wewill provide the following services to them: VIP medicare and healthcare center/Family doctor system: services devoted to the social elite, incl. medical treatment, inspection, healthcare, subhealth rehabilitation medical instructions and consultancy, remote medical treatment from around world. Through the extended services, a private doctor team will be formed.VIP medicare and healthcare center/Family doctor system: services devoted to the social elite, incl. medical treatment, inspection, healthcare, subhealth rehabilitation medical instructions and consultancy, remote medical treatment from around world. Through the extended services, a private doctor team will be formed. Membership service: services provided to the upper income grousp. Members enjoy routine medical inspections, appointed and private medical services, free selection of doctors, helathcare planning and consultancy, healthcare data storage and retrieval via Internet. Services in different levels will be designed for those with different membership fees.Membership service: services provided to the upper income grousp. Members enjoy routine medical inspections, appointed and private medical services, free selection of doctors, helathcare planning and consultancy, healthcare data storage and retrieval via Internet. Services in different levels will be designed for those with different membership fees. Medical insurance: in cooperation with major international insurance companies, patients are paid through their own insurance system in their home countriesMedical insurance: in cooperation with major international insurance companies, patients are paid through their own insurance system in their home countries Outpatient full-time services: medical guidance over the entire medical treatment upon arrival of the patient, and chief doctor responsibility system and other services to help reduce the waiting time of the patients to provide a family like medical environmentOutpatient full-time services: medical guidance over the entire medical treatment upon arrival of the patient, and chief doctor responsibility system and other services to help reduce the waiting time of the patients to provide a family like medical environment Philip adds more intro, also refer to HBP_06Service.doc

33. 2007-01-03Ver 1133 Services & Technologies (2/2) A combination of free medical and scheduled medical services, incl. telephone, fax and Internet based appointment with the doctorsA combination of free medical and scheduled medical services, incl. telephone, fax and Internet based appointment with the doctors Remote medical and healthcare services and consultancy: with the Internet and other telecommunications and network technologies, registration and preliminary diagnosis will be done via Internet, as well as with SMS. Some free of charge.Remote medical and healthcare services and consultancy: with the Internet and other telecommunications and network technologies, registration and preliminary diagnosis will be done via Internet, as well as with SMS. Some free of charge. Community and at-the-door medical services: services provided to specified communities, mostly in socalled noble communities where the wealthy agglomerate. Contractual medical, healthcare services will be provided, possibly through a long-term medical service agreement with the ownership of the communities. Health symposiums, consultancy, medical inspections, visits will be held in order to understand their medical needs.Community and at-the-door medical services: services provided to specified communities, mostly in socalled noble communities where the wealthy agglomerate. Contractual medical, healthcare services will be provided, possibly through a long-term medical service agreement with the ownership of the communities. Health symposiums, consultancy, medical inspections, visits will be held in order to understand their medical needs. Normal medical services for the low-income groups as well as for the large population at a price 30% lower than the market price. Possible a supermarket or shopping mall style of medical service mode will be employed.Normal medical services for the low-income groups as well as for the large population at a price 30% lower than the market price. Possible a supermarket or shopping mall style of medical service mode will be employed. We differ from others in that we provide a full-time healthcare and rehabilitation of the clients Our community service systems will assure the greatest care of the clients once they have left the hospital after the inpatient treatmentsWe differ from others in that we provide a full-time healthcare and rehabilitation of the clients Our community service systems will assure the greatest care of the clients once they have left the hospital after the inpatient treatments

34. 2007-01-03Ver 1134 The Hospital (1/9) Location: Yangfushan at the north of Lucheng district, close to the future CDB and the new municipal administration center of Wenzhou. This area will be developed into a secondary downtown area with commerce, trade, and public services. To the north is the Wenzhou International Exhibition Center and the Shangri-La Hotel under construction and also the landscape band along the Oujiang River, and to the south is the Wenzhou Economic Development Zone. Type: general acute care hospital with its own primary and secondary care facilities in- house, providing a fully integrated healthcare service system, with a common podium and two separate in-patient towers. Class: top level hospital according to Chinese classification, with international standards Category: profitable hospital, able to regulate the prices autonomously without government intervention Total beds: 700, where 320 beds for phase one: (lack of 7800 beds according to the minimal standard of 2.09 beds/1000 persons in 2005 in Wenzhou, see chapt. Wenzhou Health) Why we design 700 beds ? Explain. Establishment of satellite polyclinics throughout Wenzhou such as Rui'an ( 瑞安 ), Yueqing ( 乐清 ) and Cangnan ( 苍南 ) Total investment: RMB 450 mio., or US$ 57 mio. Philip leads this part of the presentation Also refer to HBP_07Hospital.doc

35. 2007-01-03Ver 1135 The Hospital (2/9) Integrated special services: pulmonary, gastroenterology, cardiology, endocrinology, allergy, immunology, neurology, general surgery, orthpeadic, urology, thoracic surgery, cardiovascular, plasticIntegrated special services: pulmonary, gastroenterology, cardiology, endocrinology, allergy, immunology, neurology, general surgery, orthpeadic, urology, thoracic surgery, cardiovascular, plastic Mother & child program: providing a comprehensive range of maternal, women, and child health programsMother & child program: providing a comprehensive range of maternal, women, and child health programs Cardiological center with 100 beds and state-of-the-art treatment facility that includes procedure rooms, two cardiac catheterization laboratories and one vascular interventional procedure rooms with imaging equipment, and a ninth room with a multi-splice CT scanner for both diagnosis and treatment which works on both heart vessels as well as peripheral blood vessels.Cardiological center with 100 beds and state-of-the-art treatment facility that includes procedure rooms, two cardiac catheterization laboratories and one vascular interventional procedure rooms with imaging equipment, and a ninth room with a multi-splice CT scanner for both diagnosis and treatment which works on both heart vessels as well as peripheral blood vessels. Cancer center with 200 beds:Cancer center with 200 beds: Dental centerDental center Joints & bones: providing a wide range of orthopedic services including comprehensive rehabilitative services for the elderly population and the many of the accident victims/cases.Joints & bones: providing a wide range of orthopedic services including comprehensive rehabilitative services for the elderly population and the many of the accident victims/cases. Explain the reasons for the establishment of these special services and centers

36. 2007-01-03Ver 1136 The Hospital (3/9) Inpatient facilities – wards Wards will be divided into 5 categories: VIP room, single room, twin- room, triple room and deca-room.Wards will be divided into 5 categories: VIP room, single room, twin- room, triple room and deca-room. Ward size will range from 40-60 beds, depending on various mixes of private, semi-private or bigger wards. Care will be given to efficient layout considering man-power deployment, logistical conveniences, patients' comfort, privacy and safety. Adequate space will be provided to patients, caregivers, guests and relatives.Ward size will range from 40-60 beds, depending on various mixes of private, semi-private or bigger wards. Care will be given to efficient layout considering man-power deployment, logistical conveniences, patients' comfort, privacy and safety. Adequate space will be provided to patients, caregivers, guests and relatives. The bed allocation will be decided from time to time depending on demand by the Patient Business Office. All beds are interchangeable and accordingly the exact bed allocation from time to time may be different from that planned.The bed allocation will be decided from time to time depending on demand by the Patient Business Office. All beds are interchangeable and accordingly the exact bed allocation from time to time may be different from that planned.

37. 2007-01-03Ver 1137 The Hospital (4/9) Outpatient ClinicsOutpatient Clinics –On the main hospital campus, a very large outpatient clinics of at least 40 consultation rooms providing primary & secondary care and act as a referral center of patients for the hospital. –Break-down of specialty services: Wellness CenterWellness Center Emergency MedicineEmergency Medicine Women ’ s clinicWomen ’ s clinic Corporate Physical ExaminationCorporate Physical Examination Retail outlets for eye glasses, hearing aids and medical supplies, OTC drugsRetail outlets for eye glasses, hearing aids and medical supplies, OTC drugs –ratio of out-patient daily visits vs. # of beds, thus, if there are 700-bed, the estimated OPD daily volume shall be 2,100 visits. –To protect the privacy of the patients, the clinics are all designed as single room and doctors are able to serve the clients individually. In the maternal clinics, suites will be provided for their families as well Satellite Clinics : Satellite clinics throughout Wenzhou be established to provide the much needed convenience to the patients it serves and further enhancing the catchment net. This will also provide a structural means to create a brand recognition within greater Wenzhou.Satellite Clinics : Satellite clinics throughout Wenzhou be established to provide the much needed convenience to the patients it serves and further enhancing the catchment net. This will also provide a structural means to create a brand recognition within greater Wenzhou.

38. 2007-01-03Ver 1138 The Hospital (5/9) Clinical Supporting Services As a general acute care hospital with emphasis of two signature specialty programs namely in maternity & child health and heart program, the following clinical supporting programs are considered: 12 operating theaters;12 operating theaters; 2 specialized minimun invasive surgery rooms for larporascopy procedures2 specialized minimun invasive surgery rooms for larporascopy procedures Day surgery Center for endoscopy procedures _____bedsDay surgery Center for endoscopy procedures _____beds 30 ICU/CCU/NICU beds30 ICU/CCU/NICU beds 12 LDRs;12 LDRs; 40-bed nursery;40-bed nursery; ____ isolation suites____ isolation suites Clinical laboratory & pathology;Clinical laboratory & pathology; Diagnostic Imaging Services ranging from general x-ray, mammogram, DEXA, CT, MRI, ultrasounds & Echo;Diagnostic Imaging Services ranging from general x-ray, mammogram, DEXA, CT, MRI, ultrasounds & Echo; 2 Cath Laboratory;2 Cath Laboratory; EKGs, Treadmills, 24-hour holtersEKGs, Treadmills, 24-hour holters Rehabilitative Services such as physical therapy, occupational therapy and speech therapy.Rehabilitative Services such as physical therapy, occupational therapy and speech therapy. Central Supply & Sterilization DepartmentCentral Supply & Sterilization Department Dietary & Food ServicesDietary & Food Services Exchange Center with auditorium for seminars and conferencesExchange Center with auditorium for seminars and conferences

39. 2007-01-03Ver 1139 The Hospital (6/9) Layout General layout Five zones: 1) outpatient/emergency/Five zones: 1) outpatient/emergency/ technical area, 2) inpatient, technical area, 2) inpatient, 3) rehabilitation, 4) administration and 5) logistics 3) rehabilitation, 4) administration and 5) logistics Main buildings outpatient/emergency: 14200m ², inpatient: 35000m ², technical facilities: 21000m ², administrative: 4000m ², ancillary buildings: 8800m ², public funeral hall: 300m ² 。Main buildings outpatient/emergency: 14200m ², inpatient: 35000m ², technical facilities: 21000m ², administrative: 4000m ², ancillary buildings: 8800m ², public funeral hall: 300m ² 。

40. 2007-01-03Ver 1140 The Hospital (7/9) The Grand Hall The Reception The Rest Zone The Nursing Station Illustrative only

41. 2007-01-03Ver 1141 The Hospital (8/9) Outpatient Waiting ZoneVIP Rest Room The Ward VIP Ward Illustrative only

42. 2007-01-03Ver 1142 The Hospital (9/9) Emergency Clinics The Meeting Room The Lifts Illustrative only