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Dragon and Oriental Wave Extend the Share Purchase Agreement in Connection with the Proposed Acquisition


Dragon Pharmaceutical Inc. (OTC BB: DRUG; TSX: DDD; BBSE: DRP) announces that the Company and Oriental Wave Holding Limited have agreed to extend the Share Purchase Agreement to February 28, 2005 in connection with the proposed acquisition of Oriental Wave. Under the original terms of the Share Purchase Agreement, the acquisition was to be completed by December 31, 2004, or the agreement could be terminated. As previously announced, Dragon’s stockholders’ meeting has been scheduled for January 11, 2005.

“We believe that the acquisition represents an important strategic step for us that will strengthen our competitive position. Combining the businesses of Dragon and Oriental Wave into one unified organization will expand our range of products, allow us to leverage the marketing network built over the years in China and international markets by both companies and improve our ability to execute our combined business strategy. These benefits will enable us to better capitalize on attractive global market opportunities in the generic pharmaceutical sector as well as the bulk pharmaceutical chemical sector and position us for increased revenue and growth. I urge all our stockholders to vote in favour of the proposed acquisitions together with other proposals.” said, Dr. Alexander Wick, President and CEO.

Each Dragon stockholder as of the record date of November 29, 2004 has been sent a copy of the Definitive Proxy Statement. Dragon Stockholders are strongly encouraged to read the Definitive Proxy Statement and vote on the proposed acquisition among other proposals. Any Dragon stockholder who has not received the Definitive Proxy Statement or has any questions regarding the Definitive Proxy Statement, the Annual General Meeting or the voting process can contact Garry Wong directly at the Vancouver office of the Company.

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