On 3 Dec 2007 the company filed a petition against Shandong Xinfa Pharmaceutical Co., Ltd. regarding patent infringement with the Hangzhou Intermediate People's Court of Zhejiang Province. An announcement regarding the issue was published in the Securities Times and on the China Info website (www.cninfo.com.cn), dated 5 Dec 2007.

On 29 Mar, 11 Apr, 6 May, 24 Jul and 26 Aug 2008, relevant information regarding progress in the lawsuit was published in the Securities Times and on the China Info website (www.cninfo.com.cn).

On 16 Sept 2008, the company received a notice from the Shanghai No.1 Intermediate People's Court stating that the court has decided to hear the patent infringement case on 13 Oct 2008 at 2:00 pm.

As of the date of this announcement, there were no other issues regarding lawsuits of the company that should be disclosed but remain undisclosed. Relevant information regarding progress in the matter will be disclosed in a timely manner as it becomes available. Investors are advised to exercise caution when dealing with the company's shares.

Board of Directors
18 Sept 2008


Source: Securities Times

Date: 18 Sept 2008

CN01/BJ/JL/BT/KM