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Biotech / Medical : CHDX--US China Industrial Exchange -- Ignore unavailable to you. Want to Upgrade?

To: Bill Bishop who wrote (53)	8/15/1998 7:28:00 AM
From: WWS	Respond to of 77

Bill, in the 10-Q operations statement $288,000 appears under "Miscellaneous Income/Expenses". My guess is that this is the "missing" revenue from Beijing United. If so, no wonder they'd rather not draw our attention to the fact. If they're charging $6,000 (US) per birth, this is just 98 births for the quarter (about 1 per day), which probably means that they're filling only 2 or 3 of their 20 beds. In other words, operating revenues from Beijing United should be $2.8 million per quarter, 10x what seems to be the case. I think that I will call them today (maybe can talk directly to one of the principals) or Monday if not successful today. Bill.

To: Bill Bishop who wrote (53)	8/17/1998 4:20:00 PM
From: WWS	Respond to of 77

Bill, Larry Pemble, CFO, returned my call this afternoon (I'd left voice mail for him on Saturday). He said that the full 10-Q would soon be posted on EDGAR and that Note 2 (I think) explained the situation with regards to operating revenues from services at Beijing United clinic. He said that the operating revenues (year to date) of the clinic were some $644,000, which he termed still less than "break even", but that this short term short fall "was expected". I'm not sure whether the $644,000 clinic revenues were current, or only up to the end of the quarter April through June. The full 10Q, when posted, should make this clear. Well, at least his call confirms that operations at Beijing United are generating cash. So I'll probably stay invested awhile (at least 'till next quarter's results) and see whether any of the new distributorships, and the clinic, come to fruition. Best Regards, Bill (working at home today).

To: Bill Bishop who wrote (53)	8/18/1998 8:33:00 AM
From: WWS	Respond to of 77

The 10QSB is available on EDGAR (SEC web site) as of this a.m. As Larry Pemble stated, Note 2 does indeed show revenue of $644,000 from "Healthcare Services" (i.e., Beijing United--BU--Clinic, which opened in March) for the first six calendar months of 1998. $1,421,000 in expenses were incurred operating the clinic during the same 6 month period. If we discount a portion of expenses as "one-time" start-up costs, I'd estimate that the first "full" quarter of BU operations generated about 1/2 million in service revenues at a cost of about 1 million. Against this backdrop, next quarter's results will be particularly illustrative in showing how fast revenues ramp up vis a vis expenses. I'd estimate that the revenue potential of a 20 bed obstetrics unit is about $3.6 million per quarter, assuming a stay of 3 days and $6000 charge per birth. Bill.