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Tongjitang Chinese Medicines Company Announces Share Repurchase Program

Posted on: Tuesday, 9 September 2008, 09:00 CDT

Tongjitang Chinese Medicines Company (NYSE: TCM), a leading specialty pharmaceutical company focusing on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China, today announced that the company has been approved, but not obligated, by its board of directors to purchase up to $20 million of its American Depositary Shares ("ADS"), subject to shareholder approval.

The repurchases will be made from time to time on the open market at prevailing market prices, in negotiated transactions off the market, in block trades, pursuant to a 10b5-1 plan (which allows Tongjitang to repurchase its ADSs during periods in which it may be in possession of material non-public information) or otherwise. The timing and extent of any purchases will depend upon market conditions, the trading price of ADSs and other factors, and be subject to the restrictions relating to volume, price and timing under applicable law, including Rule 10b-18 under the Securities Exchange Act of 1934. Tongjitang expects to implement this share repurchase program in a manner consistent with market condition and the interest of the shareholders. Tongjitang plans to fund repurchases made under this program from available cash balance. This share repurchase program may be modified, extended or terminated by the board at any time.

Mr. Xiaochun Wang, Tongjitang's Chief Executive Officer and Chairman of the Board, commented, "The board's decision to buy back our ADSs reflects our firm belief that our ADSs are presently undervalued in the marketplace and represents a sound investment decision at recent trading prices. We are confident in our ability to successfully execute our business plan and generate shareholder value over time and we believe this repurchase program is in the best interest of Tongjitang and our shareholders."

About Tongjitang Chinese Medicines Company

Tongjitang Chinese Medicines Company, through its operating subsidiaries Tongjitang Pharmaceutical, Tongjitang Distribution, Tongjitang Chain Stores, and Tongjitang Planting, is a vertically integrated and profitable specialty pharmaceutical company focused on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China. Tongjitang's principal executive offices are located in Shenzhen, China.

Tongjitang's flagship product, Xianling Gubao, is the leading traditional Chinese medicine for the treatment of osteoporosis in China as measured by sales in Renminbi. In addition to Xianling Gubao, the Company manufactures and markets 18 other modernized traditional Chinese medicine products and 38 western medicines. Please visit www.tongjitang.com for more information.

Source: Business Wire

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