Dragon Pharmaceuticals Subsidiary Acquires Chinese Drug Company, EPO License

Sanhe Kailong Biopharmaceutical Co. Ltd. (Vancouver, BC, Canada), a subsidiary of Dragon Pharmaceuticals Inc. (Toronto), has entered into an agreement to acquire a 75% interest in Nanjing Huaxin Biopharmaceutical Ltd. of China.

Under the strategic agreement, Dragon gains both the drug license and production permit to manufacture and market Erythropoietin (EPO) in China. Kailong will contribute a new vector technology to Huaxin that will allow Huaxin to produce EPO at lower costs and with significantly increased production.

Huaxin was the first company to receive an EPO drug license from China's Ministry of Health and the first to realize commercial production of the drug in China. It now produces approximately 500,000 doses of EPO, making it the largest domestic producer.

As part of the joint venture agreement, the Company has formed a strategic alliance and partnership with Nanjing Medical (Group) Ltd., a Chinese pharmaceutical company.

For more information: Shaun Maskerine, Dragon Pharmaceuticals Inc. Tel: 604-669-8817. Fax: 604-669-4243.