Lansen's New Distribution Agreement

Cathay International Holdings Limited

("Cathay" or the "Company")

Lansen's announcement in relation to the non-renewal of an existing distribution agreement and the entering into of a new distribution agreement for leflunomide tablets

Hong Kong, 5 January 2015 - Cathay International Holdings Ltd. (LSE: CTI.L), an investment holding company and a leading operator and investor in the growing healthcare sector in the People's Republic of China, today notes that one of its subsidiaries, Lansen Pharmaceutical Holdings Limited (Lansen), has announced the non-renewal of an existing distribution agreement and the entering into of a new distribution agreement for leflunomide tablets, a disease modifying anti-rheumatic ("DMARD") product used for the treatment of rheumatoid arthritis.

Lansen Medicine (Shenzhen) Company Limited (Shenzhen Lansen), an indirect wholly-owned subsidiary of Lansen, entered into an exclusive distribution agreement with Fujian Huitian Bio-Pharma Co., Ltd for the appointment of Shenzhen Lansen as the exclusive distributor for certain leflunomide tablets branded "Tuoshu" in the PRC in October 2008. Shenzhen Lansen was notified that this agreement would not be renewed upon expiry on 31 December 2014.

In December 2014, Ningbo Lansen Pharmaceutical Company Limited (Ningbo Lansen), an indirect wholly-owned subsidiary of Lansen, entered into an exclusive distribution agreement with Dalian Merro Pharmaceutical Factory for the appointment of Ningbo Lansen as the exclusive distributor for certain leflunomide tablets branded "Hepai" in the PRC for a term of ten years from 1 January 2015 to 31 December 2024.

Lansen is committed to maintaining the leflunomide tablets in its DMARDs product portfolio and its market share in the PRC. The entering into of the Dalian Merro Distribution Agreement will give Lansen the exclusive right to continue to distribute Hepai, another leading brand of leflunomide tablets, replacing Tuoshu, for a term of 10 years in the PRC.

Lansen will market and promote Hepai to the hospitals in the PRC, leveraging on the Lansen's distribution network for its core pharmaceutical products, Pafulin. Lansen, and therefore Cathay, is expected to benefit from the gradual increase in the sales of Hepai in the DMARDs products portfolio.

-ENDS-

For further enquiries, please contact:

Cathay International Holdings Limited

Eric Siu (Finance Director) Tel: +852 2828 9289

Patrick Sung (Director and Controller)

Consilium Strategic Communications

Mary-Jane Elliott/ Amber Bielecka / Matthew Neal / Lindsey Neville Tel: +44 (0) 20 3709 5702

About Cathay

Cathay International Holdings Limited (LSE: CTI.L) is a main market listed investment holding company and a leading operator and investor in the growing healthcare sector in the People's Republic of China ("PRC"). Taking advantage of the strong and growing domestic demand for high quality healthcare products in China, 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 already 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, Haotian Group, a company engaged in the manufacture, marketing and sale of key active ingredients for healthcare products, including dietary supplement inositol and Botai, a company engaged in the development of pharmaceutical products and bringing these to the growing Chinese market.

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 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