PegBio Co., Ltd. — Capital/Financing Update 2012

Feb 2, 2012

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)

RIGHTS ISSUE ON THE BASIS OF FIVE RIGHTS SHARES FOR EVERY ONE CONSOLIDATED SHARE HELD ON THE RECORD DATE WITH BONUS WARRANTS ON THE BASIS OF ONE BONUS WARRANT FOR EVERY FIVE RIGHTS SHARES TAKEN UP

COMMENCEMENT OF DEALINGS IN THE CONSOLIDATED SHARES ON AN EX-ENTITLEMENT BASIS

Reference is made to the circular of the Company dated 13 January 2012 (the “ Circular ”) in relation to, among others, the proposed Rights Issue and Bonus Warrant Issue of the Company on the basis of five Rights Shares for every one Consolidated Share held on the Record Date with Bonus Warrants on the basis of one Bonus Warrant for every five Rights Shares taken up. Unless provided otherwise, capitalized terms used in this announcement have the same meanings as those defined in the Circular.

Pursuant to the expected timetable set forth in the Circular, the last day of dealings in the Consolidated Shares on a cum-entitlement basis was Thursday, 2 February 2012. Based on the closing market price of the Consolidated Shares of HK$0.530 per Consolidated Share as quoted on the Stock Exchange on Thursday, 2 February 2012, the theoretical ex-rights price of the Consolidated Shares will be approximately HK$0.197 per Consolidated Share.

Dealings in the Consolidated Shares on an ex-entitlement basis shall commence on Friday, 3 February 2012.

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Dealings in the Rights Shares in the nil-paid form are expected to take place from Monday, 20 February 2012 to Monday, 27 February 2012 (both days inclusive). Shareholders and potential investors should note that dealings in the Consolidated Shares and/or nil-paid Rights Shares will take place while not all the conditions to which the Underwriting Agreement is subject are fulfilled. If the conditions of the Underwriting Agreement are not fulfilled or the Underwriting Agreement is terminated by Chung Nam, the Rights Issue and the Bonus Warrant Issue will not proceed. Any dealings in the Rights Shares in their nil-paid form between Monday, 20 February 2012 to Monday, 27 February 2012, both days inclusive, are accordingly subject to the risk that the Rights Issue and the Bonus Warrant Issue may not proceed.

By Order of the Board Suen Cho Hung, Paul Chairman

Hong Kong, 2 February 2012

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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