09:25     GUANGZHOU PHAR<00874> - Announcement                                

    The Stock Exchange of Hong Kong Limited takes no responsibility for       
    the contents of this announcement, makes no representation as to its      
    accuracy or completeness and expressly disclaims any liability            
    whatsoever for any loss howsoever arising from or in reliance upon the    
    whole or any part of the contents of this announcement.                   
                                                                              
    Guangzhou Pharmaceutical Company Limited                                  
    (a joint stock company established in the People's Republic of China      
    with limited liability)                                                   
    (Stock Code: 0874)                                                        
                                                                              
    Announcement                                                              
                                                                              
    The directors of the Company (the "Directors") have noted the recent      
    increases in the price of the shares and increase in trading volume of    
    the shares of Guangzhou Pharmaceutical Company Limited (the "Company")    
    and wish to state that the Directors are not aware of any reasons for     
    such increase.                                                            
                                                                              
    The Directors understand that the Company is in the process of            
    negotiating terms of the continuing connected transactions (as defined    
    in the Rules Governing the Listing of securities on the Stock             
    Exchange) with Guangzhou Pharmaceutical Holdings Company Limited, a       
    substantial shareholder holding approximately 60.55% interest in the      
    Company. As the transactions may or may not be proceed. The               
    shareholders are advised to exercise caution when dealing the shares      
    of the Company. Further announcement will be made once the                
    transactions are materialised.                                            
                                                                              
    Save as disclosed above, the Directors also confirm that there are no     
    negotiations or agreements relating to intended acquisitions or           
    realisations which are discloseable under Rule 13.23, neither is the      
    board of Directors (the "Board") aware of any matter discloseable         
    under the general obligation imposed by Rule 13.09, which is or may be    
    of a price-sensitive nature.                                              
                                                                              
    Made by the order of the Board, the Directors collectively and            
    individually accept responsibility for the accuracy of this statement.    
                                                                              
    By Order of the Board                                                     
    Guangzhou Pharmaceutical Company Limited                                  
    He Shuhua                                                                 
    Company Secretary                                                         
                                                                              
    Guangzhou, the People's Republic of China, 25 April 2005                  
                                                                              
    As at the date of this announcement, the Board comprises Mr. Yang         
    Yongming, Mr. Zhou Yuejin, Mr. He Shuhua and Mr. Feng Zansheng as         
    executive directors, and Mr. Wu Zhang, Mr. Wong Hin Wing and Mr. Zhang    
    Heyong as independent non-executive directors.