Sihuan donates to help victims of earthquake

CONDOLENCE TO THE VICTIMS OF THE SICHUAN EARTHQUAKE;

DONATION OF RMB1 MILLION AND RMB2 MILLION WORTH OF PHARMACEUTICALS TO THE BEIJING RED CROSS

The Board of Directors and management of Sihuan Pharmaceutical Holdings Group Ltd (“SihuanPharmaceutical” or the “Group”) would like to express our deepest sympathy and condolence to the victims of the recent earthquake in Sichuan, the People’s Republic of China (“PRC”). Our subsidiary, Beijing Sihuan Pharmaceutical Co., Ltd, has donated RMB1 million in cash as well as RMB2 million worth of life-saving drugs such as Naloxone to the Beijing Red Cross. Naloxone is one of the emergency drugs used to treat unconscious patients. In addition, we will look at other ways in which we can aid the survivors of this disaster. The Board of Directors wishes to announce that the Group’s operations have not been affected by the earthquake in Sichuan on Monday. The destruction caused by the earthquake was concentrated mainly in the Sichuan rural area, and the Group does not have any operations in the affected area.

ON BEHALF OF THE BOARD

Che Fengsheng

Executive Chairman and Chief Executive Officer

14 May 2008