Sinovac Announces Receipt of Competing Non-Binding "Going Private" Proposal BEIJING

Receipt of Competing Non-Binding "Going Private" Proposal

BEIJING, February 4, 2016 /PRNewswire/ --

Sinovac Biotech Ltd. ("Sinovac" or the "Company") (NASDAQ: SVA), a leading provider of biopharmaceutical products

in China, today announced that the special committee of its board of directors received on February 4, 2016 a preliminary non-binding

proposal letter, dated February 3, 2016, from a consortium comprised of PKU V-Ming (Shanghai) Investment Holdings Co., Ltd., Shandong

Sinobioway Biomedicine Co., Ltd., CICC Qianhai Development (Shenzhen) Fund Management Co., Ltd., Beijing Sinobioway Group Co.,

Ltd., Heng Feng Investments (International) Limited and Fuerde Global Investment Limited, to acquire all of the outstanding common

shares of the Company for $7.00 in cash per common share. A copy of the proposal letter is attached hereto as Exhibit A.

The special committee of the Company's

independent directors, which was formed to consider the preliminary non-binding proposal letter, dated January 30, 2016, from Mr.

Weidong Yin, chairman, president and chief executive officer of the Company, and SAIF Partners IV L.P. and/or its affiliates will

carefully consider and evaluate both proposals with the assistance of the special committee's independent financial and legal

advisors to be appointed in due course.

The Company's directors caution the

Company's shareholders and others considering trading in the Company's securities that no decisions have been made

with respect to the Company's response to either proposal. There can be no assurance that any definitive offer will be made,

that any agreement will be executed or that either proposal or any other transaction will be approved or consummated. The Company

does not undertake any obligation to provide any updates with respect to these or any other transactions, except as required under

About Sinovac Biotech Ltd.

Sinovac Biotech Ltd. is a China-based biopharmaceutical

company that focuses on the research, development, manufacturing, and commercialization of vaccines that protect against human

infectious diseases. Sinovac's product portfolio includes vaccines against hepatitis A and B, seasonal influenza, H5N1 pandemic

influenza (avian flu), H1N1 influenza (swine flu), mumps and canine rabies. In 2009, Sinovac was the first company worldwide to

receive approval for its H1N1 influenza vaccine, which it has supplied to the Chinese Government's vaccination campaign and stockpiling

program. The Company is also the only supplier of the H5N1 pandemic influenza vaccine to the government stockpiling program. Sinovac's

newly developed innovative vaccine against HFMD caused by EV71 entered the commercialization production phrase and will be launched

into the market by the end of first half of 2016. The Company is currently developing a number of new products including a Sabin-strain

inactivated polio vaccine, pneumococcal polysaccharides vaccine, pneumococcal conjugate vaccine and varicella vaccine. Sinovac

primarily sells its vaccines in China, while also exploring growth opportunities in international markets. The Company has exported

select vaccines to Mexico, Mongolia, Nepal, Tajikistan, Bangladesh, Chile and the Philippines, and was recently granted a license

to commercialize its influenza vaccine in Guatemala. For more information, please visit the Company's website at www.sinovac.com.

Sinovac Biotech Ltd.

Tel: +86-10-8279-9871

Fax: +86-10-6296-6910

Email: ir@sinovac.com

U.S.: 1-646-308-1707

Email: william.zima@icrinc.com

The Special Committee of the Board of Directors (the "Special

Sinovac Biotech Ltd.

No. 39 Shangdi Xi Road,

Haidian District, Beijing 100085

People's Republic of China

Dear members of the Special Committee:

We, PKU V-Ming (Shanghai) Investment Holdings Co., Ltd. (PKU

V-Ming"), Shandong Sinobioway Biomedicine Co., Ltd. ("Shandong Sinobioway"), CICC Qianhai Development

(Shenzhen) Fund Management Co., Ltd. ("CICC Qianhai"), Beijing Sinobioway Group Co., Ltd. ("Sinobioway

Group"), Heng Feng Investments (International) Limited ("Heng Feng"), and Fuerde Global Investment

Limited ("Fuerde", together with PKU V-Ming, Shandong Sinobioway, CICC Qianhai, Sinobioway Group, and Heng Feng,

the "Consortium") are pleased to submit our preliminary non-binding proposal (the "Proposal")

to acquire all of the outstanding common shares of Sinovac Biotech Ltd. (the "Company" or "Sinovac")

in an all-cash transaction for US$7.00 per common share (the "Transaction").

We believe that our Proposal provides an attractive opportunity

to the Company's shareholders and is more favorable to the Company's unaffiliated shareholders than the preliminary

non-binding proposal from Mr. Weidong Yin ("Mr. Yin"), the chairman, president and chief executive officer of

the Company, and SAIF Partners IV L.P. and its affiliates ("SAIF", together with Mr. Yin, the "Insider

Group"), dated January 30, 2016, to acquire all of the outstanding common shares not already owned by the Insider Group

for US$6.18 in cash per common share (the "Insider Proposal").

Our offer price provides compelling value for Sinovac's

shareholders as compared with the Insider Proposal, as our Offer represents an attractive premium of approximately 39.44% to the

unaffected closing price on January 29, 2016, the last trading day before Sinovac publicly announced receipt of the Insider Proposal,

and a premium of approximately 13.3% to the Insider Proposal.

Our Consortium is comprised of a Chinese A-Share listed company,

and several reputable enterprises and private equity funds. Each of us has a strong balance sheet or access to capital to provide

the required funding to expeditiously implement our Proposal. We have agreed to work with each other exclusively in pursuing the

Transaction. We will form an acquisition company for the purpose of executing the Transaction. We intend to finance the Transaction

with equity from the members of our consortium. Debt financing may be provided by loans from third party financial institutions.

We are prepared to promptly enter into discussion with the Special

Committee on the definitive agreements for the Transaction (the "Definitive Agreements"). As the unaffiliated

shareholders own common shares representing more than 70% of the Company's outstanding voting power, we are prepared to structure

the Transaction as a two-step amalgamation - a front-end tender offer followed by a back-end amalgamation - to afford the

unaffiliated shareholders an opportunity to make their own decision and promptly receive enhanced share value in cash regardless

of the Insider Group's position with respect to our Proposal. Subject to the terms of the Definitive Agreements, we are prepared

to commence an offer (the "Offer") to acquire all of the outstanding common shares of Sinovac for US$7.00

per share, in cash.. The Offer will be conditioned, among other customary terms, upon: (i) there being no "poison pill"

plan adopted by the Special Committee or the Board of Directors of Sinovac; (ii) the tender of common shares representing more

than 50% of the voting power (on a fully diluted basis); and (iii) there being no order or injunction which has the effect of making

illegal or otherwise prohibiting the consummation of the Offer. In the event that we receive less than the tender of at least 66.67%

(in voting power) of the outstanding shares of the Company, we are nonetheless committed to proceed with the Offer.

We do not anticipate any substantive issues with respect to

regulatory approvals, nor do we believe that any regulatory approval will impede or delay our ability to quickly and efficiently

consummate the Transaction. We believe that we would be able to promptly consummate the Transaction. Compared with any potential

transaction involving the Insider Group, which will be a "going private transaction" that triggers the SEC's Rule 13e-3

review, our Proposal, especially our Offer, can be closed much more expeditiously.

We have engaged Sidley Austin LLP as our international legal

counsel. We believe that we will be in a position to complete customary due diligence for the Transaction in a timely manner and

concurrently discuss with the Special Committee the terms of the Definitive Agreements. We are flexible on the potential structure

of the Transaction, including working with the Insider Group. Our goal is to expedite the process of delivering maximum value to

the Company's shareholders.

As a member of our Consortium is listed on the Shenzhen Stock

Exchange, it may be under certain legal obligations to disclose this letter and, as such, the Company may also wish to make a public

announcement with respect to the receipt of our Proposal. However, we believe that it is in our mutual interests to proceed in

a confidential manner, unless otherwise required by law, until we have executed the Definitive Agreements or terminated our discussions.

This letter constitutes only a preliminary indication of our

interest, and does not constitute any binding commitment with respect to the Transaction. A binding commitment will result only

from the execution of the Definitive Agreements, and then will be on terms and conditions provided in such documentation. This

letter is governed by, and construed in accordance with, the laws of New York.

About PKU V-Ming. PKU V-Ming is a leading investment

holding company founded by Beijing Sinobioway Group Co., Ltd., Sichuan Tuopai Shede Group Co., Ltd. and other well-known companies.

PKU V-Ming is a capital management company aiming to achieve rapid capital appreciation. PKU V-Ming also provides international

investment banking services for high growth companies. The registered capital of PKU V-Ming is RMB200 million.