BEIJING, July 25, 2012 (GLOBE NEWSWIRE) -- Medical Care Technologies Inc. (OTCBB:MDCE), a growing American company providing Western healthcare products distribution and children's healthcare services in China, released today the following letter to shareholders from its Chief Executive Officer, Ning Chung Wu:
Dear Valued Shareholders,
It has been three months since I last formally addressed you, and it is again important for me to inform you, clarify some of your concerns and share some exciting news. MDCE has been moving forward on many fronts, and I am extremely pleased with our team's progress in building our footprint in China.
Growth Opportunity in Prominent Location
In May a growth opportunity was presented for a new location in one of China's most dynamic cities, and we jumped at that chance. As MDCE's business model for children's private healthcare services in China has been well received by officials and locals alike, your Company was officially invited to apply for a license and to open a health center in Shenzhen. This process that would normally take years, obtaining approval from the Chinese Ministry of Health, took a considerably shorter time to achieve. This is another major milestone for us firstly, to be invited and, secondly, to be granted the license to operate a health center in a major, Tier-1 city.
Shenzhen is China's first and most successful "Special Economic Zone", and is regarded as one of the fastest growing cities in the world with a population of over 10 million people. Shenzhen has grown beyond the borders of the original Zone and now encompasses an area of 790 sq. miles, larger than New York, London or Los Angeles! With a booming economy, Shenzhen has developed very rapidly into a vibrant commercial powerhouse fueled by the ambitions of its upwardly mobile, educated, entrepreneurial inhabitants. For many Chinese, Shenzhen represents China's 21st century future (Business in Asia, March, 2012).
Once license approval was granted, our consultants in Shenzhen moved to quickly select an eminent site for the health center, close to the 2011 Universiade location, in an area of this thriving city which teems with young, urban professional families. I am pleased to tell you that zoning approvals from the city government have also been granted – another major milestone – and renovations can begin immediately. We have already paid the required licenses, bonds and zoning fees.
Our mission became a plan and that plan is fast becoming a reality. Building renovations in China, which adhere to increasingly stringent building standards and encourages the construction of energy-efficient structures, can be completed rather quickly. As we finalize on the Shenzhen construction financing, now in its advanced stages, our project development and qualified construction crews are selected and prepared to work diligently for a rapid on-time project completion and opening of the Shenzhen health center.
Auxiliary Location - Dongguan
Many of you have been wondering when we will be announcing the health center opening in Dongguan. This was our initial site selection and, whilst an excellent choice, Dongguan, for many Chinese, is still considered to have a less prominent profile than Shenzhen. "Dongguan is like a silver medal at the Olympics and Shenzhen is the gold!" stated Peter Verner, Senior Communications Advisor for Medical Care Technologies Inc.
We have renegotiated our lease contracts and maintain our permissions there at no ongoing costs until opened. We have progressed steadily since we announced our presence there last year however, because of MDCE's growing favored player status and reputation for what we are undertaking in children's healthcare in China, the political arena played a very strong role in changing our course. Our official invitation, followed by your Board's decision to set up in Shenzhen has secured a strong, 'first-mover' footing in a Tier-1 city. Our Shenzhen operations must take priority now and we will announce the news on the status of the Dongguan health center in due course. Dongguan remains our supporting and auxiliary site in Guangdong Province.
Reiterating No Reverse Split
I would like to address one of our most common shareholder questions and restate that there is no reverse split planned in the foreseeable future. We have determined that a reverse split would not be in the best interests of MDCE nor our shareholders at this time in our development and will not take place in the foreseeable future.
Looking Ahead To A Bright Future
My primary goal is to create value by positioning MDCE to effect positive change: positive change in health care, as health care is all about people. I firmly believe once we can affect this, a positive change in MDCE's market position will follow. I am confident that you, our shareholders, are going to be greatly rewarded for your astute choice and faith in MDCE.
Sincerely yours and on behalf of the Board,
Ning Chung Wu
Chief Executive Officer
Medical Care Technologies Inc.
About Medical Care Technologies Inc.
Medical Care Technologies Inc. is traded under the symbol MDCE on the OTCBB and is headquartered in Beijing, China. MDCE, through joint ventures or Chinese subsidiaries, develops a network of children's health facilities in the larger urban areas throughout China. Services are geared towards the advancing economic middle-class and upper class Chinese families. Specializing in the care of children between the ages of 3 to 16, MDCE's role is to enhance the overall well-being of the family and community and to expand its pediatric services to include preventative health and wellness education. MDCE, through its children's health facilities, will also distribute a diverse range of industry-leading pharmaceutical and nutraceutical product lines. MDCE's main mission is simple – to become a healthcare service provider leader in children's health. Information on the Company can be found at www.sec.gov and the Company's website at www.medicaretechinc.com.
Safe Harbor Statement
All statements contained in this press release, other than statements of historical fact, are forward-looking statements, including those regarding: MDCE's products, services, capabilities, performance, opportunities, development and business outlook, guidance on our future financial results and other projections or measures of our future performance; the amount and timing of the benefits expected from strategic initiatives and acquisitions or from deployment of new or updated technologies, products, services or applications; and other potential sources of additional revenue. These statements are based on our current plans and expectations and involve risks and uncertainties that could cause actual future events or results to be different than those described in or implied by such forward-looking statements. These risks and uncertainties include those relating to: lack of operating history, transitioning from a development company to an operating company, difficulties in distinguishing MDCE's products and services, ability to deploy MDCE's services and products, market acceptance of our products and services; operational difficulties relating to combining acquired companies and businesses; our ability to form and maintain mutually beneficial relationships with customers and strategic partners; changes in economic, political or regulatory conditions or other trends affecting the healthcare, Internet, information technology and healthcare and pharmaceutical industries, and our ability to attract and retain qualified personnel. Other risks and uncertainties may include, but are not limited to: lack of or delay in market acceptance and fluctuations in customer demand, dependence on a limited number of significant customers, reliance on third party vendors and strategic partners, ability to meet future capital requirements on acceptable terms, continuing uncertainty in the global economy, and compliance with federal and state regulatory requirement. Further information about these matters can be found in our Securities and Exchange Commission filings. We expressly disclaim any intent or obligation to update these forward-looking statements.