Dragon Pharmaceutical Inc.
OTC Bulletin Board : DRUG

Dragon Pharmaceutical Inc.

July 12, 2005 07:30 ET

Dragon Appoints Ernst & Young LLP as Company's Auditor and Intends to Apply for American Stock Exchange Listing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 12, 2005) - Dragon Pharmaceutical Inc. (TSX:DDD)(OTCBB:DRUG)(BBSE:DRP) ("the Company") is pleased to announce the appointment of Ernst & Young LLP ("Ernst & Young") by its Board of Directors as the Company's independent registered public accounting firm. In addition, the Board also approved the filing of a listing application with the American Stock Exchange (AMEX).

The appointment of Ernst & Young is a natural extension of a seven-year business relationship with Moore Stephens Ellis Foster Ltd. ("Moore Stephens Ellis Foster") which has been the Company's independent registered public accounting firm since inception. With the merger of Moore Stephens Ellis Foster in May 2005, Ernst & Young inherits the thorough understanding of Dragon's history and business. The Company believes its international growth strategy will be supported by Ernst & Young's global network and presence.

In addition, the Company's Board also approved the filing of an application to list its common stock with the American Stock Exchange as soon as practicable. This will mark an important step for the Company to gain greater visibility and recognition among the investment community, which will help increase shareholders' value by providing liquidity and a more credible, stable trading environment.

The Company believes that the foregoing events will assist in seeking additional financing from new institutional and strategic investors as disclosed earlier even though the financing has been taken longer time than anticipated. "We are confident in our products and markets. We believe that working with a top-tier auditing firm and applying for a senior stock exchange listing in the U.S. will provide a good foundation for the Company to move forward by enhancing the visibility of the Company, liquidity of our stock and shareholders' value.", said Mr. Yanlin Han, Chairman and CEO of Dragon.

About Dragon Pharmaceutical Inc.

Dragon Pharmaceutical Inc. is an international pharmaceutical company headquartered in Vancouver, Canada, with three key business units consisting of a Pharma division for 44 generic prescription, over-the-counter and sterilized bulk drugs; a Chemical division for bulk pharmaceutical chemicals and intermediates (Clavulanic Acid and 7-ACA, Abamectin); and a Biotech division for recombinant drugs (EPO and G-CSF). The Company has four manufacturing facilities in China (three in Datong city and one in Nanjing city), approximately 1,800 employees, plus over 1,200 sales representatives in China, and approximately 55 key products in 86 different dosages and presentations currently in the market.

This press release contains forward looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward looking statements. No assurance can be given that the Company's application to list its common stock with the American Stock exchange will be approved or that the Company will be able to obtain additional investors. Readers should not place undue reliance on forward looking statements, which only reflect the view of management as of the date hereof. The Company does not undertake the obligation to publicly revise these forward looking statements to reflect subsequent events or circumstances. Readers should carefully review the risk factors and other factors described in its periodic reports with the Securities and Exchange Commission.

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