Neusoft Acquires 73.14% Equity of ViewHigh

On January 11, 2011, Neusoft Corporation ("Neusoft", 600718.SH), announced that it has successfully concluded an equity transfer agreement with Beijing ViewHigh Tech Co., Ltd. (ViewHigh). According to this agreement, Neusoft purchases 73.14% equity of ViewHigh, and therefore becomes its controlling shareholder.

This deal will enhance and expand Neusoft's medical ERP product lines based on its existing product and solution offerings, and enable Neusoft to provide customers with comprehensive, high-quality medical care & health management solutions. Also, through the seamless integration of medical IT operations and expansion of the business scale, Neusoft will reinforce its leading position in China's medical care and health service industry.

ViewHigh is a leading application software supplier for medical care and health industry in China. The company also has strong industry expertise, vast talent pool, extensive best practices in industry-specific application and high-quality clients, and is recognized as a leader in medical ERP in terms of technology, products and market share.

According to the agreement, the two companies are subject to restructuring and integration for sharing and leveraging complementary strengths. Through this acquisition, Neusoft intends to optimize its e-hospital solutions by integrating comprehensive operation management (including logistics, finance, cost accounting, budgets, human resources, performance appraisal, etc.), regional medical resource monitor system, and DRG, expand medical IT services, and enrich medical ERP product lines. On the other hand, ViewHigh is going to quickly improve its competitiveness of management informatization in medical institutes, share Neusoft's existing marketing & sales network and extensive product lines, and reinforce the investment in product R&D and marketing & sales network.

Professor Lu Zhaoxia, Senior Vice President of Neusoft, said that, "ViewHigh is an outstanding company devoting to application software development in medical care and health industry. Through the equity transfer, Neusoft hopes to expand our investment in medical IT services and enrich our product lines. This fully shows that Neusoft is confident in the future of this industry, and also demonstrating our determination to provide customers with advanced medical IT solutions and best practices."

Ms. Duan Chenghui, President of ViewHigh, stated that Neusoft is the leading IT solution and service provider in China, and the equity transfer will help us to optimize and integrate our resources to provide more comprehensive, better products and services for our customers. In the future, we will invest more in the R&D, marketing and operation, and improve our competitiveness to reinforce our leadership in China's medical care and health industry.