Full Year Results Year 2001

MASNET Announcement 21-09-01
Health Management International Ltd (Company No. 199805241E)

Full-year financial statement on consolidated results for the year ended 30 June 2001.
These figures have not been audited.

* "nm" is not meaningful

Note :
1."Previous year to 30 June 2000" refers to the corresponding 12-month period.
2. Included in the item 1(c) - "Other income including interest income" under the "Company" column is an amount of $152,000 interest income for loans extended to its principal subsidiary HMI Balestier Hospital Pte Ltd.This was eliminated through consolidation at Group level.
3. "Income tax" for the Group is the provision for 10% foreign tax payable for regional income earned by its principal subsidiary HMI Balestier Hospital Pte Ltd.

Note :
a) Earnings per share for the period ended 30 June 2001 was computed based on the share capital of 191,124,400 shares at $0.05 each. (For the period ended 30 June 2000, computation was based on the weighted average share capital of 181,624,400 shares at $0.05 each).
b) Net tangible asset backing per share as at 30 June 2001 was computed based on the share capital of 191,124,400 shares at $0.05. (For the period ended year 30 June 2000, computation was based on the share capital of 191,124,400 shares at $0.05 each).

5.(a) Amount of any adjustment for under or overprovision of tax in respect of prior years

NIL

5.(b) Amount of any pre-acquisition profits

NIL

5.(c) Amount of profits on any sale of investments and/or properties

NIL

5.(d) Any other comments relating to Paragraph 5

NIL

6. Segmental Results

7.(a) Review of the performance of the company and its principal subsidiaries

The Board of Directors wished to announce the full year results of the Group for the period ended 30 June 2001.

For the financial period under review, the Group reported (i) total turnover of $12.4m compared to FY 2000's $14.1m, and (ii) Group operating profit after tax of $1.2m compared with a loss of $402,000 in the previous year. The Group's operating profit of $1.2m arose out of the gain on disposal of investment and income earned from the management and consulting services but was partly negated by the loss in hospital operations in Singapore. Excellent Strategy Sdn Bhd (ESSB), the owner and operator of Mahkota Medical Centre recorded a higher turnover and improved profit for FY 2001.

7.(b) A statement by the Directors of the Company on whether "any item or event of a
material or unusual nature which would have affected materially the results of
operations of the Group and Company has occurred between the date to which the
report refers and the date on which the report is issued". If none, to include a
negative statement.

In the opinion of the Board of Directors, other than as disclosed in this announcement, the results of the Group and the Company for the period from 30 June 2001 to the date of this announcement have not been substantially affected by any item, transaction or event of a material and unusual nature.

8. Commentary on current year prospects

The Board of Directors is cautious of the business outlook of the Group in view of the global economic slow down as well as the uncertainty resulting from the follow-on effects of the recent terrorists attack in the United States of America.

The Group recognizes that the healthcare industry in Singapore is very competitive with many established players, both in the private and public sectors. Notwithstanding this environment, the Group, continues its restructuring effort and is in the process of focusing its Singapore operations on lifestyle and sports medicine. HMI Balestier Hospital successfully launched the colorectal cancer screening program in March 2001 and is working towards expanding the program.

On the regional front, with the completion of the acquisition of the additional 30% equity interest in ESSB, the Group, through its wholly owned subsidiary, HMI Balestier Hospital Pte Ltd, will now own 40% of ESSB and thus, become the single largest shareholder of ESSB. The Group will continue to concentrate and add value to Mahkota Medical Centre through the introduction of new services, developing quality care programs and aggressive marketing of its services to both the local as well as the regional patients. These initiatives are expected to futher improve the financial performance of the hospital and thus contribute to the Group's earnings.

The Group continues to seek healthcare investment opportunities and hospital management and consulting contracts in the region. The Group is also working on establishing strategic collaboration with other healthcare providers in this region.

9. Dividend

9(d) Date payable

Not Applicable

9(e) Books closing date

Not Applicable

9(f) Any other comments relating to Paragraph 9

NIL

10. Balance sheet

11. Details of any changes in the company's issued share capital

NIL

12. Comparative figures of the group's borrowings and debt securities

(c) Any other comments relating to Paragraph 12

The banking facilities are secured by :-
1. a continuing corporate guarantee from Health Management International Ltd.
2. a fixed and floating charge over the assets of HMI Balestier Hospital Pte Ltd.

BY ORDER OF THE BOARD

Dr Gan See Khem
Chairperson and Managing Director
20 September 2001


Submitted by Dr Gan See Khem, Chairperson and Managing Director on 20/09/2001 to the SGX