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Dragon Received Independent Confirmation of High Yield Erythropoietin (“EPO”) Cell Line

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Dragon Pharmaceutical Inc. is pleased to announce that it has received the yield results of an independent test of the EPO cell line constructed by the Company’s Chinese subsidiary using CHO (Chinese Hamster Ovary) cells. The EPO cell line was tested at the Beijing Institute of Microbiology and Epidemiology, an independent lab.

The yield of the EPO cell line was 37 mg/L, calculated by measuring the EPO levels in the harvested media using ELISA. The management of the Company is very encouraged by such a high yield cell line and is confident that the Company’s Chinese subsidiary can produce EPO at much higher yields and at much lower costs than other Chinese EPO producers.

Dragon Pharmaceuticals is the largest producer of EPO in China and plans to apply its vector technology to other biodrug production. The Company has formed a strategic alliance and partnership with Nanjing Medical (Group) Ltd., one of the largest pharmaceutical enterprises in China with extensive experience and expertise in the marketing and distribution of pharmaceutical products in China.

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