GMP Update

Taihua plc

("Taihua" or the "Company")

GMP Update

Tahua confirms that following a recent audit of the Company's facilities it has once again achieved Chinese Good Manufacturing Practice ("GMP") in respect of its Traditional Chinese Medicines. This GMP certificate has been issued by the Chinese State Food and Drug Administration for a further 5 years.

Nicholas Lyth, Chairman of Taihua plc commented "Following the Chinese Government's decision to temporarily suspend the operations of a large number of Traditional Chinese Medicine manufacturers in 2009 it is particularly pleasing for Taihua to have a renewed GMP for this range of products. We believe that the Chinese Government will continue to vigorously police the TCM manufacturers. This presents an opportunity for those companies like Taihua who have the necessary investment, training and procedures to ensure supply of high quality product into the marketplace."

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