Grand Pharmaceutical Group Limited — M&A Activity 2002

Feb 4, 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.

CHINA APOLLO HOLDINGS LIMITED VISION OCEAN INVESTMENTS LIMITED

(incorporated in Bermuda with limited liability) (incorporated in the British Virgin Islands with limited liability)

Unconditional cash offer by

on behalf of

Vision Ocean Investments Limited

to acquire all the issued shares in

China Apollo Holdings Limited

(other than those already acquired by Vision Ocean Investments Limited)

Joint Financial Advisers to Vision Ocean Investments Limited

Baron Capital Limited

Reference is made to the joint announcement of Vision Ocean and the Company on 11th January, 2002.

Under Rule 8.2 of the Takeovers Code, the Offer Document is required to be despatched by Vision Ocean within 21 days from the date of announcement of the terms of the Offer. Accordingly, the Offer Document is required to be released on or before Friday, 1st February, 2002.

Vision Ocean and the Company have applied to the Executive for a waiver from strict compliance with Rule 8.2 of the Takeovers Code to post the Offer Document on or before Monday, 11th February, 2002.

INTRODUCTION

Reference is made to the joint announcement of Vision Ocean and the Company on 11th January, 2002. Terms used herein have meanings attached to them in the Announcement.

WAIVER TO EXTEND THE DATE OF POSTING OF THE OFFER DOCUMENT

Under Rule 8.2 of the Takeovers Code, the Offer Document is required to be despatched by Vision Ocean within 21 days from the date of announcement of the terms of the Offer. Accordingly, the Offer Document is required to be despatched on or before Friday, 1st February, 2002.

As the Company has over 50 properties, although it has given instructions for a valuation report, it has been informed that the valuation report cannot be available in time to permit for posting on or before Friday, 1st February, 2002.

Vision Ocean and the Company has applied to the Executive for a wavier from strict compliance with Rule 8.2 of the Takeovers Code to post the Offer Document on or before Monday, 11th February, 2002.

By order of the board By order of the board

CHINA APOLLO HOLDINGS LIMITED VISION OCEAN INVESTMENTS LIMITED

Raymond Lau Lo Yuk Yee

Director Director

Hong Kong, 1st February, 2002

All the directors of China Apollo jointly and severally accept full responsibility for the accuracy of the information contained in this announcement (other than those relating to Vision Ocean) and confirm, having made all reasonable inquiries, that to the best of their knowledge and belief, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement (other than those relating to Vision Ocean) the omission of which would make any statement in this announcement misleading.

All the shareholders and directors of Vision Ocean jointly and severally accept full responsibility for the accuracy of the information contained in this announcement (other than those relating to China Apollo) and confirm, having made all reasonable inquiries, that to the best of their knowledge and belief, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement (other than those relating to China Apollo) the omission of which would make any statement in this announcement misleading.

Please also refer to the published version of this announcement in the Hong Kong i-Mail.