AGM Statement

Taihua plc

("Taihua" or the "Company")

AGM Statement

At the Annual General Meeting of the Company, to be held later today, Nicholas Lyth, the Chairman of the Company, will give the following statement:

"I am pleased to present the following update as to Taihua's activities in the year to date:

Sales Revenue

Taihua's sales in the period from January to May 2010 remain stable. The Company has achieved sales revenue of RMB11.6 million in this period, an increase of RMB5.23 million compared to the same period last year. This represents an 82% increase compared to same period last year.

The Company sold 6.02kg of Paclitaxel in the period from January to May 2010, an increase of 2.32kg compared to the same period last year. This represents a 62% increase. Sales revenue of Paclitaxel from January to May 2010 is RMB4.63 million, an increase of RMB1.78 million compared to the same period last year. The growth rate is 62%.

The Company sold 3.04kg of Hommoharringtonine in the period from January to May 2010, an increase of 1.79 kg compared to the same period last year. This represents a 143% increase. Sales revenue of Hommoharringtonie from January to May 2010 is RMB5.19 million, an increase of RMB3.05 million compared to the same period last year. The growth rate is 142%.

The sales revenue of Traditional Chinese Medicines (TCM) in the period from January to May 2010 is RMB1.78 million, an increase of RMB400,000 compared to the same period last year with an growth rate of 29%.

2 Additional Update

The Company continues to consider a number of acquisition opportunities, and a further announcement will be made in due course if, and when, an acquisition proceeds to completion.

In addition, the Company confirms it is continuing discussions with potential European distribution partners and can provide no further update at this time.

Finally, the Company plans to actively market two of its TCMs (Biantong Tablet and Hugan Tablet) in the second half of this year. The Company has recently completed a pre-marketing survey for these two products. "

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