INTRODUCTION

1.1.

The Scheme.

The Board of Directors of International Healthway Corporation Limited (the Company or &ldquo IHC and together with its subsidiaries, the &ldquo Group

&rdquo ) is pleased to announce the proposed acquisition (the Acquisition&rdquo ) by the Company of the entire issued and paid up ordinary shares in the capital of

Healthway Medical Corporation Limited (&ldquo HMC and together with its subsidiaries, the &ldquo HMC Group&rdquo ) (the &ldquo HMC Shares&rdquo ). The Acquisition will be effected by

way of a scheme of arrangement (the &ldquo Scheme&rdquo ) in accordance with Section 210 of the

Companies Act, Chapter 50 of Singapore (the &ldquo Companies Act

&rdquo ) and the Singapore Code on Takeovers and Mergers (the &ldquo Code&rdquo ).

1.2.

Implementation Agreement.

In connection with the Acquisition, the Company and HMC

(each, a &ldquo Party&rdquo and collectively, the &ldquo Parties &rdquo ) have today entered into an implementation agreement (the &ldquo

Implementation Agreement&rdquo ) setting out the terms and conditions on which

HMC and the Company will implement the Scheme

for the purposes of the Acquisition

.