The company has announced that it plans to purchase the equity of Chongqing DaXin Pharmaceutical Co., Ltd., a subsidiary of Beijing PKU International Hospital Group Co., Ltd., from Beijing PKU through a private placement. Beijing PKU is the parent company of Chongqing Southwest Synthetic Pharmaceutical Co., Ltd., the controlling shareholder of the company. Currently the company is discussing detailed work of the company's assets reorganisation with relevant intermediaries. Trading in the company's shares will continue to be suspended.

Source: China Securities Journal

Date: 14 Jul 2008

CN01/RL/MZ/AR/KM