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

Jul 14, 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.

==> picture [121 x 52] intentionally omitted <==

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)

EXTENSION OF LONG STOP DATE

The Board hereby announces that as additional time is required for discussions between the parties on the terms of the Definitive Agreement, Beijing YST Holdings and the Proposed Seller have agreed in writing to extend the Long Stop Date for entering into the Definitive Agreement to on or before 20 August 2010.

Shareholders and potential investors are reminded that discussions in respect of the Possible Acquisition are still ongoing and no definitive agreement has been entered into or may ever be entered into. As such, there is no certainty that the Possible Acquisition may proceed. Care should be exercised when dealing in shares of the Company.

Reference is made to the announcement (the “Announcement”) of the Company dated 10 May 2010 in relation to the memorandum of understanding (the “MOU”) entered into between Beijing YST Holdings and the Proposed Seller on 10 May 2010 regarding the possible acquisition of 70% equity interest in the entire shareholdings of NSK (the “Possible Acquisition”). Unless otherwise specified, terms used herein shall have the same meanings as defined in the Announcement.

Pursuant to the terms of the MOU, the definitive agreement (“Definitive Agreement”) in respect of the Possible Acquisition shall be executed by 15 July 2010 (the “Long Stop Date”) or any other date to be agreed between the parties, failing which, the MOU will be terminated.

1

As additional time is required for discussions between the parties on the terms of the Definitive Agreement, Beijing YST Holdings and the Proposed Seller have agreed in writing to extend the Long Stop Date for entering into the Definitive Agreement to on or before 20 August 2010. Unless the parties agree to further extend the Long Stop Date, the MOU will lapse on 21 August 2010. Save for the aforesaid extension of the Long Stop Date, other terms and conditions of the MOU remain unchanged and valid.

Shareholders and potential investors are reminded that discussions in respect of the Possible Acquisition are still ongoing and no definitive agreement has been entered into or may ever be entered into. As such, there is no certainty that the Possible Acquisition may proceed. Care should be exercised when dealing in shares of the Company.

By Order of the Board Suen Cho Hung, Paul Chairman

Hong Kong, 14 July 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 Mr. Chau Chung Tak as Executive Directors and Mr. Wong Kwok Tai, Mr. Weng Yixiang, Mr. Lu Xinsheng and Mr. Xiong Wei as Independent Non-executive Directors.

• For identification purpose only

2