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Dragon Closes Acquisition of Nanjing Huaxin Biotech Ltd

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Dragon Pharmaceutical Inc. is pleased to announce that it has completed the acquisition of Nanjing Huaxin Biotech Ltd. (“Huaxin”) in Nanjing City, China as referred to in the previous news release dated July 7, 1999. The closing of this major transaction was marked by the issuance of a new business license by the Chinese government.

The acquisition makes Dragon Pharmaceuticals the largest producer of Erythropoietin (“EPO”) in China. The Company is now proceeding to increase production and sales of EPO by improving the technology at Huaxin. The Company has also 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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