Interim Management Statement

Cathay International Holdings Limited

("Cathay" or the "Company")

Interim Management Statement

Hong Kong, 19 November 2012 - Cathay International Holdings Ltd. (LSE: CTI.L), an investment holding company and a leading investor in the growing healthcare sector in the People's Republic of China ("PRC"), today announces its Interim Management Statement for the period from 1 July 2012 to 19 November 2012 in accordance with FSA Disclosure and Transparency Rule 4.3.

Business update

During the period, Lansen has performed in line with management expectations, with continued focus on raising the visibility of Pafulin, Tuoshu and Mycophenolate Mofetil (MMF, an immunosuppressant drug) and developing the product pipeline in its specialty markets. Lansen anticipates the expansion of its Pafulin extract production plant to be completed in early 2013. The Company will benefit from expansion of its facilities, which will drive operating efficiency and thereby place Lansen in a strong position to meet the increasing demand for its products.

In September, Haotian finished its first scaled trial run of inositol and DCP production, at 70% of its designed capacity on an annualized basis. The outcome from the trial showed an improvement in both the production costs and output efficiency and the second scaled trial run will commence later this month. As stated in the interim results issued on 29 August 2012, Haotian's delivery of an improved financial performance has been dependent upon the final phases of the inositol project being completed to plan. Given the status of this project, the contribution from sales of inositol and DCP, in the year ending 31 December 2012 will not be significant.

At Botai, the expansion of the collagen injectable filler production facility is expected to complete in early 2013. In preparation for the launch in China of Botai's collagen injectable filler product, Fillderm, the company is continuing its pre-marketing activities as well as setting up its sales offices and building the sales team. The product has received positive and encouraging feedback from cosmetic and medical professionals.

Financial position

There has been no significant change in the financial position of the Group since the Company's interim results for the six months ended 30 June 2012, reported on 29 August 2012.

Mr. Lee Jin-Yi, CEO of Cathay International Holdings Limited, said: "Cathay remains focused on delivering the objectives set across its portfolio. We are pleased to report that during the period we have made good progress on all fronts and will continue to focus on advancing the Inositol product programme. Our priority for the future will be to continue to deliver operational and financial progress across the Group."

-ENDS-

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About Cathay

Cathay International Holdings Limited (CTI.L), focused on the People's Republic of China ("PRC"), is an investment holding company and a leading investor in the growing healthcare sector in the People's Republic of China ("PRC"). The Group employs more than 2,000 people across the PRC, including over 30 specialist corporate and business development staff based at the holding company's offices in Hong Kong and Shenzhen.

Cathay aims to identify investment opportunities with emphasis on high growth healthcare markets and build them into market sector leaders, with a clear exit strategy. Cathay has demonstrated a strong track record of identifying high-growth potential investment opportunities in this area including: Lansen Group, China's leading specialty pharmaceutical company focused on rheumatology and Haotian Group, a company engaged in the manufacture, marketing and sale of key active ingredients for healthcare products, including inositol. To complement its healthcare portfolio, Cathay has a research and product development business focused on bringing new products to the growing Chinese market.

Cathay also has a private equity investment arm focused on minority investment opportunities and a hotel investment. For more information please visit the Company's website: www.cathay-intl.com.hk.