10:12     WANJI PHARMA<00835> - Announcement (3)                              

    grant of the Options in accordance with the Share Option Scheme.          
                                                                              
    Pursuant to the Share Option Scheme, the Board may at its absolute        
    discretion specify such conditions as it may think fit when               
    granting the options under the Share Option Scheme. With respect          
    to the grant of the Options, there will be no specific conditions.        
                                                                              
    (b)     Subscription Price                                                
                                                                              
    The Options are exercisable at the Subscription Price of HK$0.196         
    per Share. The Subscription Price represents the average closing          
    price of the Shares of HK$0.196 as quoted on the Stock Exchange           
    for the five business days immediately preceding 20 January 2005,         
    being the date of the resolution of the Board for the grant of            
    the Options and represents a premium of approximately 3.16% over          
    the average closing price of the Shares of HK$0.190 as quoted             
    on the Stock Exchange on 20 January 2005, being the date of the           
    resolution of the Board for the grant of the Options.                     
                                                                              
    (c)     Reasons and consideration                                         
                                                                              
    Mr. Yen and Mr. Lam are the executive Director and chief operation        
    officer of the Company respectively and the Options are proposed          
    to be granted to them as part of the market competitive                   
    remuneration and an incentive for their continuing commitment             
    and contribution to the Group in the future. The consideration            
    payable on acceptance of the Options is HK$1.00 for each of Mr.           
    Yen and Mr. Lam.                                                          
                                                                              
    The details of the other terms of the Options will be further             
    set out in the circular to be despatched to the Shareholders              
    shortly.                                                                  
                                                                              
    INFORMATION OF THE OPTIONS GRANTED UNDER THE SHARE OPTION SCHEME          
                                                                              
    As at the date of this announcement, save for the Options to              
    be granted to Mr. Yen and Mr. Lam, the Company has not granted            
    any options under the Share Options Scheme. As at the date of             
    this announcement, Mr. Yen and Mr. Lam are directly interested            
    in 21,769,300 Shares and nil Share respectively and both of them          
    have no existing options. Upon the full exercise of the Options,          
    the equity interests of Mr. Yen and Mr. Lam in the Company are            
    set out as follow:                                                        
                                                                              
                                    Approximate                               
                            Approximate     percentage                        
                            percentage      of Shares held                    
                            of Shares to    upon exercise                     
            Approximate              be issued upon         in full of        
            percentage of           exercise in full        the Options to    
            Shares held             of the Options  the enlarged              
            to the issued           to the issued   issued share              
    Number of       share capital of        Number of       share capital of  
            capital of the                                                    
    Shares held     the Company     Shares to        the Company    Company as
    as at the       as at the       be issued upon   as at the      enlarged  
    by                                                                        
    the                                                                       
    date of this    date of this    exercise in full        date of this      
             exercise in full                                                 
    announcement    announcement    of the Options  announcement    of the    
    Options                                                                   
                                                                              
    Mr. Yen 21,769,300      4%      21,769,300      4%      7.55%             
    Mr. Lam Note 1  0%      10,884,650      2%      1.89%                     
                                                                              
    Note 1  Mr. Lam is interested in approximately 2% of the equity           
    interests of CV Capital Partners Limited, an investment company           
    incorporated in the British Virgin