11:16     SHINEWAY PHARM<02877> - Announcement (5)                            

    `Independent Board Committee'  an independent committee of                
                                   the Board comprising the                   
                                   independent non-executive                  
                                   Directors of the Company                   
                                   formed for the purpose of                  
                                   advising the Independent                   
                                   Shareholders on the                        
                                   Acquisition                                
    `Independent Shareholders'     Shareholders other than                    
                                   Sinovest and its associates                
    `Listing Rules'                the Rules Governing the                    
                                   Listing of Securities on the               
                                   Stock Exchange                             
    `Option'                       the option granted by                      
                                   Shineway Lang Fang granted to              
                                   the Company to acquire (or to              
                                   nominate a subsidiary to                   
                                   acquire) all or part of                    
                                   Shineway Lang Fang's equity                
                                   interests in Shineway Sales                
                                   during the period of 3 years               
                                   from 20 November 2004 under                
                                   the Option Agreement                       
    `Mr. Li'                       Mr. Li Zhenjiang , an                      
                                   executive Director and the                 
                                   controlling shareholder of                 
                                   Shineway Medical                           
    `Option Agreement'             the option agreement entered               
                                   into between the Company and               
                                   Shineway Lang Fang on 20                   
                                   November 2004 as disclosed in              
                                   the Prospectus and, where the              
                                   context requires, including                
                                   any subsequent amendments to               
                                   the option agreement agreed                
                                   between the Company and                    
                                   Shineway Lang Fang                         
    `PE Ratio'                     the price earnings ratio of                
                                   the Company obtained by the                
                                   following formula:  PE Ratio               
                                   = P / E  Where:  P is the                  
                                   average of the closing prices              
                                   of the shares of the Company               
                                   quoted on the Stock Exchange               
                                   for the 10 trading days                    
                                   immediately preceding the                  
                                   date of the Equity Transfer                
                                   Agreement; and  E is the                   
                                   audited net profit per share               
                                   of the Company after tax and               
                                   extraordinary items for the                
                                   year ended 31 December 2004                
    `PRC'                          the People's Republic of                   
                                   China                                      
    `Prospectus'                   the prospectus dated 23                    
                                   November 2004 issued by the                
                                   Company                                    
    `RMB'                          Renminbi yuan, the lawful                  
                                   currency of the PRC                        
    `Share(s)'                     ordinary share(s) with a                   
                                   nominal value of HK$0.10 each              
                                   in the capital of the Company              
    `Shareholder(s)'               shareholder(s) of the Company              
    `Shineway Lang Fang'            (Shineway Medical Science &               
                                   Technology (Lang Fang) Co.,                
                                   Ltd.), a company established               
                                   in the PRC and owned as to                 
                                   70% by Shineway Medical and                
                                   as to 30% by an Independent                
                                   Third Party                                
    `Shineway Medical'              (Shineway Medical Science &               
                                   Technology Co., Ltd), a joint              
                                   stock company incorporated in              
                                   the PRC and currently owned                
                                   as to approximately 81% by                 
                                   Mr. Li                                     
    `Shineway Sales'                (Shineway Pharmaceutical                  
                                   Sales Co., Ltd.), a company                
                                   established in the PRC with                
                                   limited liability and                      
                                   registered in Hainan Province              
                                   and currently owned as to 80%              
                                   by Yuan Da and as to 20% by                
                                   Shineway Lang Fang                         
    `Shineway Sales 2004 Profit'   The historical net profit                  
                                   after tax but before                       
                                   extraordinary items of                     
                                   Shineway Sales for the                     
                                   financial year ended 31                    
                                   December 2004                              
    `Sinovest'                     Sinovest International                     
                                   Investment Limited, being a                
                                   company incorporated in the                
                                   British Virgin Islands with