Lansen signs exclusive agreement with Ethypharm

CATHAY INTERNATIONAL HOLDINGS LIMITED

Cathay's subsidiary Lansen signs exclusive marketing and distribution agreement with Ethypharm for ketoprofen/omeprazole SR in the PRC

Hong Kong, 26 October 2011- Cathay International Holdings Limited ("Cathay", LSE: CTI.L), an investment holding company and leading investor in the growing healthcare sector in the People's Republic of China ("PRC"), is pleased to announce that its subsidiary Lansen Pharmaceutical Holdings Limited ("Lansen" or "the Group") (HKEX: 503) has announced that its wholly-owned subsidiary, Ningbo Lansen Pharmaceutical Co., Ltd, has signed an exclusive agreement with Shanghai Ethypharm Pharmaceutical Co., Ltd and Ethypharm SA (collectively referred to as "Ethypharm"). Lansen is a leading Chinese pharmaceutical company which focuses on disease-modifying anti-rheumatic drugs ("DMARDs").

Under the agreement, Lansen has been granted the exclusive rights for the marketing and distribution of ketoprofen/omeprazole slow-release capsules ("the Drug") in the PRC for more than 10 years. Ethypharm will be responsible for developing the Drug, applying for the Clinical Licence, conducting clinical trials and obtaining the Import Drug Licence ("IDL") from the State Food and Drug Administration ("SFDA") for the Drug in the PRC, while Lansen will be responsible for applying for the Import Drug Repackaging Licence ("IDRL") and repackaging the Drug in the PRC. In accordance with the requirements set by the SFDA for import drugs, Lansen estimates that the Drug will receive IDL and IDRL approvals within the next four to six years.

The Drug is a specialty analgesic and anti-inflammatory product for the treatment of rheumatic autoimmune diseases, the pharmaceutical sector in which Lansen is principally engaged. The Drug is marketed in Europe as Axorid® by Ethypharm's licensee Meda Pharma and is a fixed-dose combination of ketoprofen, a non-steroidal anti-inflammatory drug ("NSAID"), with the proton pump inhibitor omeprazole. Ketoprofen helps to reduce inflammation and pain in rheumatic disorders but, as with all NSAIDS, can also cause gastric irritation and ulceration. Omeprazole inhibits gastric acid production and combining it with ketoprofen helps to prevent the development of NSAID-associated ulcers, ulcer complications and dyspeptic symptoms.

Lansen intends to sell the Drug in the PRC using the Group's extensive distribution network, which currently extends to over 1,000 hospitals in 25 provinces and four municipal cities throughout the PRC.

Lansen is very pleased to have signed this agreement with Ethypharm, which is renowned as the European leader in innovative drug delivery, and which Lansen believes makes an ideal partner. This deal also has great significance for Lansen as it marks its first major agreement with an international pharmaceutical company. Lansen believes that the distribution of ketoprofen/omeprazole slow-release capsules in the PRC will enable it to gain strategic access to the important NSAIDs market with a unique product with attractive characteristics. This will allow Lansen to expand its existing product portfolio and strengthen its market position and brand reputation in rheumatologic diseases, and also bring a significant revenue contribution to it.

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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 China. 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 headquarters 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, a 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 an R&D 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.

About Lansen

Lansen is a leading pharmaceutical company in China which focuses on the rheumatic specialty prescription western pharmaceuticals for the treatment of autoimmune rheumatic diseases. Founded in 2002, the Group is engaged in the manufacture, distribution and development of rheumatic drugs, with a leading position in the disease-modifying anti-rheumatic drugs ("DMARDs") market in the PRC. In addition to 13 non-core medical products, the Group has three rheumatic specialty prescription western pharmaceuticals as its core products, of which Pafulin and Tuoshu rank the first and the fourth respectively in terms of DMARDs' market share. The Group has established an extensive distribution network, covering more than 1,000 hospitals in 25 provinces and four municipal cities. The headquarters for production and administration is located in Ningbo, Zhejiang Province, the PRC, with modern production facilities occupying an area of 64,000 square meters. Apart from the Chinese Government's GSP certification, the Group's operating facilities are GMP-certified by the State Food and Drug Administration and adhere to stringent and closely monitored quality assurance and safety control processes.

About ketoprofen/omeprazole SR

Ketoprofen/omeprazole SR is a specialty analgesic and anti-inflammatory product for the treatment of rheumatic autoimmune diseases, such as osteoarthritis, chronic rheumatoid arthritis, ankylosing spondylitis. It is also designed to prevent gastro duodenal ulcers that are frequently induced by chronic treatment with NSAIDs. The Drug is the first fixed-dose combination which works as an anti-inflammatory analgesic while also reducing gastrointestinal side-effects, thereby achieving better therapeutic effect.

About Ethypharm

Ethypharm SA is a French company based in Saint Cloud, Paris. Founded in 1977, Ethypharm is one of the leading pharmaceutical companies dedicated to the development of innovative drug delivery systems. Its patented technologies offer multiple benefits for patients by improving efficacy, administration, compliance, and reducing side-effects.

Ethypharm provides its clients with solutions for the life cycle management of their drugs. The company has one of the broadest portfolios of technologies to become the worldwide privileged partner of pharmaceutical companies. Ethypharm offers customized solutions for the development of the medicines of the future.

Ethypharm has 800 employees and had turnover of €130 million in 2010.