PegBio Co., Ltd. — Capital/Financing Update 2010

Oct 12, 2010

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

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BEIJING YU SHENG TANG PHARMACEUTICAL GROUP LIMITED 北京御生堂藥業集團有限公司 *

(Incorporated in Bermuda with limited liability) (Stock Code: 1141)

COMPLETION OF THE PLACING OF NEW SHARES UNDER GENERAL MANDATE

Placing Agent

RADLAND INTERNATIONAL LIMITED

The Board is pleased to announce that the Placing was completed on 12 October 2010 in accordance with terms and conditions of the Placing Agreement in which an aggregate of 517,000,000 Placing Shares have been successfully placed to not less than six Placees, who and whose ultimate beneficial owners (where a corporation) are not Connected Persons of the Company and are independent of and not connected with the Company and its Connected Persons, at the Placing Price of HK$0.285 per Placing Share.

Reference is made to the announcement of the Company dated 28 September 2010 (the ”Announcement”) in relation to the Placing. All capitalized terms used in this announcement shall have the same meanings as defined in the Announcement unless otherwise stated.

THE PLACING

The Board is pleased to announce that the Placing Agreement has become unconditional and the Placing was completed on 12 October 2010. An aggregate of 517,000,000 Placing Shares, representing approximately 16.67% of the issued share capital of the Company immediately after completion of the Placing, have been successfully placed to not less than six Placees, who and whose ultimate beneficial owners (where a corporation) are not Connected Persons of the Company and are independent of and not connected with the Company and its Connected Persons, at the Placing Price of HK$0.285 per Placing Share. Also, none of the Placees has become a substantial Shareholder (as defined in the Listing Rules) as a result of the Placing. The net proceeds from the Placing amount to approximately HK$142.9 million which, as disclosed in the Announcement, will be used for the general working capital of the Group.

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SHAREHOLDING STRUCTURE

The shareholding structure of the Company immediately before and after completion of the Placing is as follows:

ShareholdersSubstantial Shareholder:Global Wealthy LimitedDirector:Suen Cho Hung, PaulOther Shareholders:- Placees- OthersTotal	Immediately beforecompletion of the PlacingNumber ofSharesApproximate%437,433,86616.9210,000,0000.39--2,138,045,89482.692,585,479,760100.00	Immediately aftercompletion of the PlacingNumber ofSharesApproximate%437,433,86614.1010,000,0000.32517,000,00016.672,138,045,89468.913,102,479,760100.00

Note: Global Wealthy Limited, a company incorporated in the British Virgin Islands with limited liability, is a wholly owned subsidiary of Excelsior Kingdom Limited, which in turn is wholly owned by Mr. Suen Cho Hung, Paul, an Executive Director and the Chairman of the Company.

By Order of the Board Suen Cho Hung, Paul Chairman

Hong Kong, 12 October 2010

As at the date of this announcement, the Board comprises Mr. Suen Cho Hung, Paul (Chairman), Mr. Sue Ka Lok (Chief Executive Officer), Mr. Bai Jianjiang and Ms. Lee Chun Yeung, Catherine as Executive Directors and Mr. Wong Kwok Tai, Mr. Weng Yixiang and Mr. Lu Xinsheng as Independent Non-executive Directors.

* For identification purpose only

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