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Sinovac Completes Acquisition Aimed at Expanding Production Capacity

February 15, 2010

BEIJING, Feb. 15 /PRNewswire-Asia/ — Sinovac Biotech Ltd. (Nasdaq: SVA),
a leading China-based vaccine manufacturer, today announced the completion by
its subsidiary, Sinovac Beijing, of the acquisition of buildings and land use
rights. The total consideration for the purchase is approximately RMB120
million
($17.6 million), which will be financed from working capital. The
initial payment of RMB56.5 million ($8.3 million) will be paid before February
20, 2010
and the balance of the purchase price will be paid in three
installments within three years.

Sinovac Beijing is acquiring five existing buildings with a total built-
out area of 32,322.66 square meters on 29,021.61 square meters of land,
located in Changping District, Beijing, about half hour driving away from our
headquarter. The site was previously used to manufacture medicinal products.
Sinovac plans to set up two new production lines with a combined annual
production capacity of approximately 40 million doses, a filling and packaging
line, a warehouse and an animal house. At the site, the Company will
manufacture the enterovirus 71 (EV71) vaccine, which causes hand, foot, and
mouth disease (HFMD), and its other currently marketed flu vaccines.

Mr. Weidong Yin, Chairman, President and CEO of Sinovac, commented, “We
are pleased to complete the acquisition of this previously announced
transaction, which supports our growth strategy. The Changping site will
enable us to expand our production capacity, as the site will house two state-
of-the-art production lines and other necessary supporting functions. We
anticipate that it will take approximately two to three years for the lines to
be set up and production of our commercialized flu vaccines to commence. These
facilities will also support our growth objectives though the introduction of
novel products by housing the production lines for our EV71 vaccine, which is
currently being studied under the first clinical trial application for an HFMD
vaccine submitted in China. If approved, it will be the first vaccine or
antiviral treatment available for HFMD worldwide.”

About Sinovac

Sinovac Biotech Ltd. is a China-based biopharmaceutical company that
focuses on the research, development, manufacture and commercialization of
vaccines that protect against infectious diseases. Sinovac’s vaccine products
include Healive(R) (hepatitis A), Bilive(R) (combined hepatitis A and B), and
Anflu(R) (influenza). Panflu(R) and Panflu.1(TM), Sinovac’s pandemic influenza
vaccine (H5N1) and H1N1 vaccine, have already been approved for government
stockpiling. Sinovac is developing vaccines for a number of different
infectious diseases including enterovirus 71, pneumococcal disease, Japanese
encephalitis, haemophilus influenzae type b (Hib), meningitis, rabies,
chickenpox, mumps and rubella. Sinovac is also conducting field trials for
independently developed inactivated animal rabies vaccine.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical fact in this
announcement are forward-looking statements. These forward-looking statements
involve known and unknown risks and uncertainties and are based on current
expectations, assumptions, estimates and projections about the Company and the
industry in which the Company operates. The Company undertakes no obligation
to update forward-looking statements to reflect subsequent occurring events or
circumstances, or to changes in its expectations, except as may be required by
law.

    For more information, please contact:

    Sinovac Biotech Ltd.
     Helen G. Yang
     Tel:   +86-10-8289-0088 x9871
     Fax:   +86-10-6296-6910
     Email: info@sinovac.com

    Investors

    The Ruth Group
     Amy Glynn/Stephanie Carrington
     Tel:   +1-646-536-7023/7017
     Email: aglynn@theruthgroup.com
            scarrington@theruthgroup.com

    Media

    The Ruth Group
     Janine McCargo
     Tel:   +1-646-536-7033
     Email: jmccargo@theruthgroup.com

SOURCE Sinovac Biotech Ltd.


Source: newswire