Sinovac Biotech Ltd.

Sinovac Biotech Ltd.

January 03, 2005 09:38 ET

Sinovac Biotech Ltd. Reports 2004 Sales Growth of Over 230% and Announces $1.475 Million Private Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SINOVAC BIOTECH LTD.

AMEX SYMBOL: SVA

JANUARY 3, 2005 - 09:38 ET

Sinovac Biotech Ltd. Reports 2004 Sales Growth of Over
230% and Announces $1.475 Million Private Financing

BEIJING, CHINA--(CCNMatthews - Jan. 3, 2005) - Sinovac Biotech Ltd.
("Sinovac") ("the Company") (AMEX:SVA) has recorded 2004 sales growth of
more than 230% according to unaudited management-prepared sales figures.
The Company has sold more than 1 million doses of its Hepatitis A
vaccine, Healive, at a price of 55 RmB (US $6.64) per dose. These 2004
sales thus total more than US $6.6 million, an increase of more than
230% over 2003 sales of US $2.8 million.

Sinovac management is awaiting the final approval of its combined
Hepatitis A&B vaccine, Bilive, by the Chinese FDA and expects to
commence sales of this product shortly after this approval. It is also
anticipated that the Company will start commercial sales of its flu
vaccine in 2005. With further major increases expected in the sales of
Sinovac's proprietary Hepatitis A vaccine and with the other two
vaccines projected to commence sales in 2005, management is predicting
additional significant increases in annual revenues.

The Company is also pleased to announce that it has entered into a
securities purchase agreement for a $1.475 million private placement
with institutional investors for units (each a "Unit") in the capital of
the Company at a price of $3.00 per Unit. Each Unit is comprised of one
share of common stock of the Company (each a "Share") and one common
stock purchase warrant (each a "Warrant"), with each such Warrant
entitling the holder thereof to acquire one additional Share at a price
of US$3.35 per Share from the date of issuance of the Units until the
one year anniversary plus one trading day from the date of issuance of
the Units, and at a price of US$4.00 thereafter until the two year
anniversary date from the date of issuance of the Units. The Warrants
are subject to a call provision in favor of the Company, which may
reduce the expiry date of the Warrants.

These Units are being sold in a private transaction under Regulation D
of the Securities Act of 1933, as amended. The securities being issued
pursuant to this private placement have not been registered under the
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an applicable exemption from
registration requirements of the Securities Act of 1933.

The proceeds of the this transaction are intended to be used for the
acquisition of the additional 20.56% of Sinovac Biotech Co., Ltd., the
Company's majority owned subsidiary, as previously announced, and for
working capital purposes.

About Sinovac Biotech Ltd.

Sinovac Biotech Ltd. specializes in the research, development,
commercialization, and sales of human vaccines for infectious illnesses
such as hepatitis A and hepatitis B, influenza, "SARS", and avian flu.
Sinovac is one of the leading emerging biotechnology companies in China.

Sinovac has three vaccines that have completed all three phases of
clinical trials - Hepatitis A, Hepatitis A&B combined, and influenza
(flu). The Hepatitis A vaccine, Healive™, is currently experiencing
strong sales growth in China and applications have been filed for its
sale in nine other countries to date. Sinovac's Hepatitis A&B combined
vaccine, Bilive™, is expected to receive approval to commence sales
in China soon and to achieve similar sales growth to Healive™. The
flu vaccine completed clinical trials in April 2004 and a New Drug
Application has been filed with the SFDA (Chinese FDA). Approval of
Sinovac's flu vaccine is expected in 2005 upon completion of the flu
vaccine production line. Since demand for a safe and effective flu
vaccine in China greatly outstrips supply, sales are expected to
escalate rapidly. Furthermore, since individuals are vaccinated against
the flu on an annual basis, demand will remain high every year.

Sinovac is currently the only company in the world to be conducting
clinical trials for a vaccine to prevent SARS. The Company is also
developing a vaccine targeting avian flu in partnership with the China
Center of Disease Control (CDC).

For further information please refer to the Company's filings with the
SEC on EDGAR or refer to Sinovac's website at www.sinovac.com.

If you would like to receive regular updates on Sinovac please send your
email request to info@sinovac.com.

This news release may include forward-looking statements within the
meaning of section 27a of the United States Securities Act of 1933, as
amended, and section 21e of the United States Securities and Exchange
Act of 1934, as amended, with respect to achieving corporate objectives,
developing additional project interests, Sinovac's analysis of
opportunities in the acquisition and development of various project
interests and certain other matters. These statements are made under the
"safe harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995 and involve risks and uncertainties which
could cause actual results to differ materially from those in the
forward-looking statements contained herein.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Sinovac Biotech Ltd.
    Investor Relations
    (604) 684-5990 or Toll Free (North America): 1-888-888-8312
    Email: info@sinovac.com
    Website: www.sinovac.com