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

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

On 25 Aug 2008, the company received a notice from the Hangzhou Intermediate People's Court, stating that the case had been transferred to the No. 1 Intermediate People's Court of Shanghai (NIPCS), which has jurisdiction over Aixiti International Trade, for hearing.

As of the date of this announcement, there were no other lawsuits that the company has been involved in and 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 in the company's shares.

Board of Directors
26 Aug 2008


Source: Securities Times

Date: 26 Aug 2008

CN01/IS/LZ/BT/KM