Sinopharm Group Co. Ltd. — Capital/Financing Update 2011

May 4, 2011

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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SINOPHARM GROUP CO. LTD. 國藥控股股份有限公司

(A joint stock limited company incorporated in the People’s Republic of China with limited liability and carrying on business in Hong Kong as 國控股份有限公司 )

(Stock Code: 01099)

COMPLETION OF PLACING OF H SHARES

Placing Agents

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The Board is pleased to announce that completion of the Placing took place on 4 May 2011.

Reference is made to the announcement of Sinopharm Group Co. Ltd. (the “ Company ”) dated 22 April 2011 (the “ Announcement ”) in relation to the placement of 138,056,825 H shares of the Company (the “ Placing ”). Unless otherwise defi ned, all capitalized terms used herein shall have the same meanings as defi ned in the Announcement.

Completion of the Placing

The board of directors (the “ Board ”) of the Company is pleased to announce that all conditions precedent to the Placing, as set out in the Placing Agreement, have been satisfi ed (including the obtaining of permission to deal in the Placing Shares from the Stock Exchange), and completion of the Placing took place on 4 May 2011 (“ Completion ”).

Please refer to the Announcement for further details of the Placing.

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Change of Share Capital upon Completion of the Placing

The total number of issued shares of the Company has increased from 2,264,568,474 shares to 2,402,625,299 shares as a result of the issue of the Placing Shares. The total number of H Shares held by the public has increased from 690,284,125 H Shares to 828,340,950 H Shares upon Completion, and the number of Domestic Shares has remain unchanged at 1,574,284,349 Domestic Shares.

The share capital of the Company immediately following Completion is as follows:

Upon Completion Holder of H Shares or Domestic Shares No. of shares Holders of H Shares Public shareholders 828,340,950 Holder of Domestic Shares CNPGC 1,574,284,349 (Note) Total 2,402,625,299	of the Placing Percentage of issued share Capital (%) 34.48 65.52 100.00

Note: CNPGC is interested in 2,728,396 Domestic Shares directly and 1,571,555,953 Domestic Shares indirectly through 國藥產 業投資有限公司 (Sinopharm Industrial Investment Co., Ltd.), which is 51% held by CNPGC.

By order of the Board of Sinopharm Group Co. Ltd. She Lulin Chairman

Shanghai, the PRC

4 May 2011

As at the date of this announcement, the executive director of the Company is Mr. Wei Yulin; the non-executive directors of the Company are Mr. She Lulin, Mr. Wang Qunbin, Mr. Chen Wenhao, Mr. Zhou Bin, Mr. Chen Qiyu, Mr. Deng Jindong, Mr. Fan Banghan and Mr. Liu Hailiang; and the independent non-executive directors of the Company are Mr. Wang Fanghua, Mr. Tao Wuping, Mr. Xie Rong and Mr. Zhou Bajun.

• The Company is registered as a non-Hong Kong company under Part XI of the Companies Ordinance (Chapter 32 of the Laws of Hong Kong) under its Chinese name and the English name “Sinopharm Group Co. Ltd.”

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