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)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is made by Sinopharm Group Co. Ltd. (the “Company”) on a voluntary basis to keep the shareholders and investors of the Company informed of the latest business development of the Company and its subsidiaries.

Reference is made to the announcements of the Company dated 23 November 2010 and 7 January 2011 and the circular to shareholders of the Company dated 16 December 2010, regarding the proposed issue of medium-term bonds by the Company in the PRC (the “Bond Issue”).

The Company will launch the Bond Issue in the inter-bank bond market in the PRC on 4 May 2011, and the Bond Issue was approved by shareholders of the Company at an extraordinary general meeting held on 7 January 2011. The target investors of the Bond Issue are institutional investors in the inter-bank bond market in the PRC (except for those who are prohibited from investing under relevant laws and regulations of the PRC).

The relevant documents in relation to the Bond Issue have been published on the websites of China Money (http://www.chinamoney.com.cn) and China Bond (http://www.chinabond.com.cn).

The Company will publish another announcement upon completion of the Bond Issue.

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

Shanghai, the PRC

3 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.”