09:38     JIWA BIO-PHARM<02327> - Announcement (4)                            

    In this announcement, unless the context otherwise requires,              
    the following terms shall have the following meaning:                     
                                                                              
    "Board" the board of Directors                                            
                                                                              
    "Capital Injection      the agreement dated 25 May 2005 entered into      
      Agreement"    between Jiwa Rintech and Party A, Party B and Party       
    C in relation to the capital contribution by Party A and Jiwa             
    Rintech in the PRC JV Company                                             
                                                                              
    "Company"       Jiwa Bio-Pharm Holdings Limited, a company                
    incorporated in Bermuda with limited liability and the shares             
    of which are listed on the Stock Exchange                                 
                                                                              
    "Directors"     the directors (including the independent                  
    non-executive directors) of the Company                                   
                                                                              
    "Group" the Company together with its subsidiaries                        
                                                                              
    "Jiwa Rintech"  Jiwa Rintech Holdings Limited, a joint venture            
    company established in the British Virgin Islands with limited            
    liability and is a subsidiary of and owned as to 80% by the Company       
                                                                              
    "PRC JV Company"        * (Jiangsu Dongshun                               
    Pharmaceuticals Company Limited*), a company established in the           
    PRC as a sino-foreign equity joint venture with limited liability,        
    which will be renamed as * (Jiangsu Jiwa                                  
    Rintech Pharmaceutical Company Limited*)                                  
                                                                              
    "Listing Rules" the Rules Governing the Listing of Securities             
    on the Stock Exchange                                                     
                                                                              
    "Party A"       * (Jiangyin Eastern Fine                                  
    Chemical Company Limited*), a Company established in the PRC              
                                                                              
    "Party B"       * (Changzhou Zhonglian Inositol                           
    Company Limited*), a Company established in the PRC                       
                                                                              
    "Party C"       * (Shih Hwa Biotech Company                               
    Limited*) a company established in Taiwan                                 
                                                                              
    "PRC"   the People's Republic of China (for the purpose of this           
    announcement, excludes the Hong Kong Special Administrative               
    Region, the Macau Special Administrative Region and Taiwan)               
                                                                              
    "Stock Exchange"        The Stock Exchange of Hong Kong Limited           
                                                                              
    "HK$"   Hong Kong dollar, the lawful currency of Hong Kong                
                                                                              
    "RMB"   the lawful currency of the PRC                                    
                                                                              
    In this announcement, the exchange rate of HK$1.00 to RMB1.06             
    is used.                                                                  
                                                                              
    By Order of the Board of                                                  
    Jiwa Bio-Pharm Holdings Limited                                           
    Mr. Lau Yau Bor                                                           
    Chairman                                                                  
                                                                              
    Hong Kong, 25 May 2005                                                    
                                                                              
    As at the date of this announcement, members of the Board comprise        
    three executive Directors, namely Mr. Lau Yau Bor, Madam Chan             
    Hing Ming and Mr. Lau Kin Tung and three independent                      
    non-executive Directors, namely Mr. Choy Ping Sheung, Mr. Fung            
    Tze Wa and Mr. Soo Ping Shu, Samuel.                                      
                                                                              
    * For identification purposes only