Sinovac Biotech Ltd. and LG Life Sciences, Ltd., the leading pharmaceutical company in South Korea, entered into distribution agreement last month in which Sinovac will act as LGLS's exclusive distributor for its hepatitis B vaccine in the Peoples Republic of China (PRC).

"Signing this agreement is the beginning of Sinovac's international cooperation with vaccine suppliers. After long, careful analysis, we are very pleased to begin this strategic relationship with LG Life Sciences," said Yin Weidong, CEO of Sinovac. Sinovac and LGLS signed a Letter of Intent on May 12th, 2005 to collaborate their international and sector marketing efforts and vaccine supply.

"Partnering with Sinovac is an exceptional opportunity for LGLS to execute our business strategy; which is to secure global marketing capabilities," said In-Chull Kim, President and CEO of LG Life Sciences. LG Life Sciences is exporting its Hepatitis B vaccine, EUVAX B, to more than 60 countries including UN-sponsored programs.

Dr. Kim continued, "This market is important to us and we are confident in Sinovac's registration and vaccine distribution capability." Sinovac has gained great respect and brand name recognition as a result of its successes in developing vaccines for SARS and pandemic flu (H5N1).