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EPO Commercial Production Achieved

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Dragon Pharmaceuticals Inc. is very pleased to announce that a new vector technology has been successfully applied to its EPO production plant at Nanjing Huaxin, China. The yield of the improved EPO cell line has reached 45 mg per liter, well above the Company’s initial expectation.

Optimal annual EPO production from each of the bioreactors is estimated to be over one million doses. With this major technological breakthrough, Huaxin’s annual EPO production capacity can be increased up to five million doses and the direct production cost is being reduced dramatically.

EPO sales in China have increased substantially since the expansion of Huaxin’s marketing network in China. Several high-profile marketing executives were added to Huaxin’s sales team as previously announced.

Huaxin sold approximately 27,000 doses of EPO in China in November. Dragon is working toward establishing a strong marketing team to distribute its EPO produced at Huaxin plant into the international markets. A business to business web site for the marketing of EPO on the internet is currently being investigated to potentially sell Dragon’s EPO to the international market.

The management of the Company is very encouraged by the above major corporate development, which proves the technological platform developed by the Company in China. The Company has achieved the objectives of the first phase of its business plan in a short period of time.

Dragon Pharmaceuticals, the largest EPO producer in China, is currently a leading biotech company focusing on the research, development, production, and marketing of biodrugs throughout China.

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