Bloks Group Limited — Capital/Financing Update 2002

Oct 3, 2002

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Hong Kong Pharmaceutical Holdings Limited

香港葯業集團有限公司*

(Incorporated in Bermuda with limited liability)

POSSIBLE PLACEMENT OF NEW SHARES AND

RESUMPTION OF TRADING ANNOUNCEMENT

The Board wishes to inform the public and the Shareholders that the Company is in negotiation with an independent third party not connected with the directors, chief executive or substantial shareholder of the Company or any of its subsidiaries or any of their respective Associates in respect of a possible placement of the Shares. The Company initially expects that the proposed placement will be completed in the last few days. However, the Company and the independent third party failed to reach agreement on certain major terms and hence, no definite timetable or terms of the proposed placement has been finalised. Also, no binding agreement in relation to the proposed placement has been entered by the Company. The proposed placement may or may not proceed and Shareholders and investors shall exercise caution when dealing in the Shares.

In view of the price sensitive nature of the information relating to the proposed placement which was initially expected to be concluded on the last few days and in order to ensure a fair market of trading of the Shares, the Company has requested a suspension in the trading of the Shares with effect from 9:30 a.m. on 30 September 2002 until this announcement is duly made by the Company.

An application has been made by the Company to the Stock Exchange for resumption of trading in the Shares with effect from 9:30 a.m. on 3 October 2002.

The Board wishes to inform the public and the Shareholders that the Company is in negotiation with an independent third party not connected with the directors, chief executive or substantial shareholder of the Company or any of its subsidiaries or any of their respective Associates in respect of a possible placement of the Shares. Based on negotiations up to the date of this announcement, the independent third party will not become a new substantial shareholder of the Company. The Company initially expects that the proposed placement will be completed in the last few days. However, the Company and the independent third party failed to reach agreement on certain major terms and hence, no definite timetable or terms of the proposed placement has been finalised. Also, no binding agreement in relation to the proposed placement has been entered by the Company. The proposed placement may or may not proceed and Shareholders and investors shall exercise caution when dealing in the Shares. Further announcement regarding the proposed placement will be made as soon as possible where appropriate.

Save as disclosed above, the Board confirms that there are no negotiations or agreements relating to intended acquisitions or realisations which are discloseable under paragraph 3 of the Listing Agreement, neither is the Board aware of any matter discloseable under the general obligation imposed by paragraph 2 of the Listing Agreement, which is or may be of price-sensitive nature.

SUSPENSION OF TRADING

In view of the price sensitive nature of the information relating to proposed placement which was initially expected to be concluded on the last few days, and in order to ensure a fair market of trading of the Shares, the Company has requested a suspension in the trading of the Shares with effect from 9:30 a.m. on 30 September 2002 until this announcement is duly made by the Company.

RESUMPTION OF TRADING

An application has been made by the Company to the Stock Exchange for resumption of trading in the Shares with effect from 9:30 a.m. on 3 October 2002.

TERMS USED IN THIS ANNOUNCEMENT

“Associate”	has the meaning ascribed thereto under the Listing Rules
“Board”	the board of directors of the Company
“Company”	Hong Kong Pharmaceutical Holdings Limited, a company incorporated in Bermuda with limited liability and the securities of which are listed on the Stock Exchange
“Hong Kong”	the Hong Kong Special Administrative Region of the People’s Republic of China
“Listing Agreement”	the agreement entered into between the Company and the Stock Exchange when the securities of the Company are listed
“Listing Rules”	the Rules Governing the Listing of Securities on the Stock Exchange
“Shares”	the shares of the Company listed on the Stock Exchange
“Shareholders”	the shareholders of the Company
“Stock Exchange”	The Stock Exchange of Hong Kong Limited

By Order of the Board of

Hong Kong Pharmaceutical Holdings Limited

Huang Shuyun

Deputy Chairman and Managing Director

Hong Kong, 2 October 2002

* For identification purpose only

Please also refer to the published version of this announcement in The Standard dated 3 October 2002.