Sinovac Biotech Ltd.

Sinovac Biotech Ltd.

March 01, 2005 15:25 ET

Sinovac Biotech Ltd.: Updates on Warrant Exercise and Healive 2004 Sales Growth


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SINOVAC BIOTECH LTD.

AMEX SYMBOL: SVA

MARCH 1, 2005 - 15:25 ET

Sinovac Biotech Ltd.: Updates on Warrant Exercise and
Healive 2004 Sales Growth

BEIJING, CHINA--(CCNMatthews - March 1, 2005) - Sinovac Biotech Ltd.
("Sinovac") ("the Company") (AMEX:SVA) has extended the expiry date of
warrants issued in the private placement offering closed on February 24,
2004 (the "Warrants"). These Warrants have now been extended until April
30, 2005 in order to raise additional capital. The exercise price of
these warrants, which is currently US$1.70 per share, will increase by
US$.05 each month starting on March 15, 2005. The warrant exercise price
will increase to US$1.75 on March 15, 2005 and US$1.80 on April 15,
2005. To date, Sinovac has received proceeds of more than US$3.4 million
from the exercise of such warrants. If the remaining outstanding
Warrants are fully exercised then another US$3.5 to 3.7 million would be
raised. One of the primary uses of these funds is the construction of
the new influenza vaccine production facilities which is progressing on
schedule.

The Company would like to correct its news release that was issued on
January 3, 2005, which stated "Sinovac has recorded 2004 sales growth of
more than 230%..." and "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." First of all, this statement was intended to reflect 2004
growth of 2.3 times the 2003 sales figure, which would in fact be an
increase of 130% not 230% as previously stated. Furthermore, due to
foreign exchange differences and the inclusion of Chinese government
sales taxes in the previously announced gross figure of US$6.6 million,
the actual figure that will be reflected in the Company's audited
financial statements for 2004 is expected to be in a range between US$6
to US$6.6 million. Calculating the sales growth of Healive™ using the
number of doses sold yields an increase of 2.15 times or 115%. 2004
Healive™ sales were 1,002,106 doses while 2003 sales were 466,010
doses. The gross domestic sales price of Healive™ is 55 RmB per dose,
which at current exchange rates of 8.2815 RmB per US dollar equates to
US$6.64.

An update on the development of Sinovac's human vaccine targeting the
avian flu virus will be released on March 2, 2005. This vaccine is also
known as the "Inactivated New Human Influenza Vaccine" and as the
"Pandemic Influenza Vaccine".

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 now has two vaccines fully approved for sale in China -
Healive™ for Hepatitis A and Bilive™ for Hepatitis A&B combined.
The Hepatitis A vaccine, Healive™, is currently experiencing strong
sales growth in China. Sinovac's Hepatitis A&B combined vaccine,
Bilive™, received approval to commence sales in China in January 2005
and is expected to achieve similar sales growth to Healive™. The
Company's flu vaccine completed clinical trials in April 2004. Approval
of Sinovac's flu vaccine is expected in 2005 upon completion of the new
flu vaccine production line.

Sinovac is currently the only company in the world to be conducting
clinical trials for a vaccine to prevent SARS. Preliminary Phase I
results show that this SARS vaccine is safe and induces
SARS-neutralizing antibodies in the human body. In addition, the Company
is co-developing a human vaccine targeting the avian flu virus in
partnership with China 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.
    Tracey Gabert
    Investor Relations
    (888) 888-8312 or (604) 684-5990 from outside North America
    info@sinovac.com
    www.sinovac.com