09:20     FORTE<02337> - Announcement (2)                                     

    or materially limited on, or by, the Stock Exchange; (iii) trading of     
    any securities of the Company not being suspended on any exchange or      
    in any over the counter market; (iv) a material disruption in             
    securities settlement, payment or clearance services in Hong Kong or      
    the PRC not having occurred; (v) any moratorium on commercial banking     
    activities not<ep;;j> having been declared by the PRC, US federal or      
    New York State or Hong Kong authorities; (vi) there not having            
    occurred any outbreak or escalation of hostilities, declaration of a      
    national emergency or war, or any change in financial markets,            
    currency exchange rates or controls or any calamity or crisis that,       
    in the Placing Agent's judgment, is material and adverse; and (vii)       
    the receipt by the Placing Agent of original executed deeds of            
    undertaking from Existing Shareholders, where each of conditions (i)      
    to (vii) shall have been fulfilled to the satisfaction of the Placing     
    Agent (unless waived by the Placing Agent) by 4 March 2005; and           
    (viii) listing of and permission to deal in all the Placing Shares        
    being granted (subject only to allotment) by the Listing Committee of     
    the Stock Exchange in principle and dealings in the Placing Shares        
    being allowed by the Stock Exchange to commence on the Stock Exchange     
    on or before 2 March 2005 (and such listing and permission not            
    subsequently being revoked). Pursuant to the miscellaneous provisions     
    contained in the Share Placing Agreement, the Placing Agent has the       
    right to terminate the Share Placing Agreement at any time prior to       
    the completion of the Placing if there is any failure or refusal on       
    the part of the Company to comply with the terms of the Share Placing     
    Agreement applicable to it.                                               
                                                                              
    Completion of the Placing                                                 
                                                                              
    Completion of the Placing is expected to take place on the second         
    Business Day after the day on which all the conditions shall have         
    been satisfied but in any event no later than on 4 March 2005 (being      
    the sixth Business Day after the date of the Share Placing Agreement)     
    or such later date as may be agreed by the Company and the Placing        
    Agent.                                                                    
                                                                              
    Mandate to issue the Placing Shares                                       
                                                                              
    The Placing Shares will be allotted and issued under the general          
    mandate granted to the Directors at the annual general meeting of the     
    Company held on 11 June 2004. The exercise of the general mandate and     
    details of the Placing was unanimously approved by written                
    resolutions of the Directors dated 24 February 2005. The issue of the     
    Placing Shares was approved by the CSRC on 26 January 2005. According     
    to the approval issued by the CSRC, the Company is required to carry      
    out the Placing in compliance with all applicable laws, regulations       
    and rules and to submit a report to the CSRC within 15 days after         
    completion of the Placing.                                                
                                                                              
    Ranking of Placing Shares                                                 
                                                                              
    The Placing Shares, when issued and fully paid, will rank pari passu      
    in all respects with the H Shares in issue on the date of allotment       
    and issue of the Placing Shares, including the right to any dividends     
    or distributions.                                                         
                                                                              
    Shareholding structure                                                    
                                                                              
    Set out below is a breakdown of holdings in the share capital of the      
    Company immediately before and after the completion of the Placing:       
                                                                              
    Name of                   Immediately               Immediately           
    shareholders              before the                after the             
                              completion                completion            
                              of the                    of the                
                              Placing                   Placing               
                 Number of    Percentage   Number of    Percentage            
                 Shares       of           Shares       of                    
                 held         shareholding held         shareholding          
                              (%)                       (%)                   
    Holders of                                                                
    Domestic                                                                  
    Shares                                                                    
    Shanghai     577,367,700  26.16        577,367,700  24.53                 
    Fosun High                                                                
    Technology                                                                
    (Group)                                                                   
    Company                                                                   
    Limited                                                                   
    Shanghai     318,292,450  14.42        318,292,450  13.53                 
    Fosun High                                                                
    New                                                                       
    Technology                                                                
    Development                                                               
    Company                                                                   
    Limited                                                                   
    Shanghai     267,217,615  12.11        267,217,615  11.36                 
    Fosun                                                                     
    Pharmaceutical                                                            
    Development                                                               
    Company                                                                   
    Limited                                                                   
    Shanghai     207,260,200  9.39         207,260,200  8.81                  
    Fosun