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Dragon Appoints Ernst & Young LLP as Company’s Auditor

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Dragon Pharmaceutical Inc. (OTC BB: DRUG; TSX: DDD; BBSE: DRP) (“the Company”) is pleased to announce the appointment of Ernst & Young LLP (“Ernst & Young”) by its Board of Directors as the Company’s independent registered public accounting firm. In addition, the Board also approved the filing of a listing application with the American Stock Exchange (AMEX).

The appointment of Ernst & Young is a natural extension of a seven-year business relationship with Moore Stephens Ellis Foster Ltd. (“Moore Stephens Ellis Foster”) which has been the Company’s independent registered public accounting firm since inception. With the merger of Moore Stephens Ellis Foster in May 2005, Ernst & Young inherits the thorough understanding of Dragon’s history and business. The Company believes its international growth strategy will be supported by Ernst & Young’s global network and presence.

In addition, the Company’s Board also approved the filing of an application to list its common stock with the American Stock Exchange as soon as practicable. This will mark an important step for the Company to gain greater visibility and recognition among the investment community, which will help increase shareholders?value by providing liquidity and a more credible, stable trading environment.

The Company believes that the foregoing events will assist in seeking additional financing from new institutional and strategic investors as disclosed earlier even though the financing has been taken longer time than anticipated. “We are confident in our products and markets. We believe that working with a top-tier auditing firm and applying for a senior stock exchange listing in the U.S. will provide a good foundation for the Company to move forward by enhancing the visibility of the Company, liquidity of our stock and shareholders value.” said Mr. Yanlin Han, Chairman and CEO of Dragon.

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