Dragon Pharmaceutical Inc.

Dragon Pharmaceutical Inc.

March 30, 2005 18:20 ET

Dragon Pharmaceutical Announces Proposed Private Offering


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DRAGON PHARMACEUTICAL INC.

TSX SYMBOL: DDD
OTC Bulletin Board SYMBOL: DRUG

MARCH 30, 2005 - 18:20 ET

Dragon Pharmaceutical Announces Proposed Private
Offering

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2005) - Dragon
Pharmaceutical Inc. (TSX:DDD)(OTCBB:DRUG)(BBSE:DRP) announces that it
proposes to offer on a best efforts basis up to $25 million of its
securities in a private placement to accredited investors. The type of
securities, price and completion of the proposed private placement will
depend on, among other things, market conditions. It is anticipated that
the proceeds from the private placement will be used to serve as the
working capital to ramp up the production of the newly operated Chemical
division, to improve the Company's financial structure and to fund the
Company's EPO market development in Europe as well as the relocation of
the Biotech facility within China. The securities proposed to be offered
in the private placement will not be registered under the Securities Act
or any state securities laws, and unless they are so registered, may not
be offered or sold in the United States except pursuant to an exemption
from the registration requirements of the Securities Act and applicable
state securities laws.

About Dragon Pharmaceutical Inc.

On January 12, 2005, Dragon completed the acquisition of Oriental Wave
Holding Limited. As a result of the acquisition, Dragon has transformed
itself into a diversified generic pharmaceutical diversified and growth
oriented pharmaceutical company with three key business units: Chemical
division for bulk pharmaceutical chemical (Clavulanic Acid and 7-ACA),
Biotech division for recombinant drugs (EPO and G-CSF) and Pharma
division for prescription and over-the-counter drugs.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not constitute an
offer, solicitation or sale in any jurisdiction in which such offer,
solicitation or sale would be unlawful.

Cautionary Statement: The Company's statements in this press release
that are not historical facts, and that relate to future plans or
events, are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include the Company's intention to raise proceeds through the
proposed offering and sale of its securities. There can be no assurance
that the Company will complete the proposed offering on the anticipated
terms or at all. The Company's ability to complete the proposed offering
will depend on, among other things, market conditions. 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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