PegBio Co., Ltd. — M&A Activity 2010

Jan 27, 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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POLY DEVELOPMENT HOLDINGS LIMITED 保興發展控股有限公司[*]

(Incorporated in Bermuda with limited liability)

(Stock Code: 1141)

ANNOUNCEMENT

This announcement is made pursuant to Rule 13.09(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”).

The Company wishes to announce that it is in an advanced stage of negotiations with respect to a proposed acquisition (“Proposed Acquisition”) of, among others, the intellectual property rights pertaining to a medicine aimed at the treatment of patients who have been infected with influenza (including Influenza A (H1N1)), through the acquisition of a Hong Kong incorporated company and its subsidiaries incorporated in the People’s Republic of China. If and when the agreement is signed, the Company will issue an announcement in accordance with the Listing Rules if and to the extent required.

The abovesaid transaction may or may not proceed. Shareholders and investors are advised to exercise caution in dealing in the shares of the Company.

By Order of the Board Suen Cho Hung, Paul Chairman

Hong Kong, 27 January 2010

As at the date of this announcement, the Board comprises Mr. Suen Cho Hung, Paul (Chairman), Mr. Sue Ka Lok (Chief Executive Officer) 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 only