Sinovac Biotech Ltd. Enters into Definitive Agreement for Going-Private Transaction BEIJING

Sinovac Biotech Ltd. Enters

into Definitive Agreement for Going-Private Transaction

BEIJING, June 26, 2017 /PRNewswire/ -- Sinovac Biotech

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

today announced that it has entered into a definitive amalgamation agreement (the "Amalgamation Agreement") with Sinovac

(Cayman) Limited ("Parent") and Sinovac Amalgamation Sub Limited ("Amalgamation Sub"), a wholly owned subsidiary

of Parent, pursuant to which Sinovac will be acquired by Parent in a transaction valued at approximately US$401.8 million.

Pursuant to the Amalgamation Agreement, Parent will

acquire the Company for cash consideration equal to US$7.00 per common share of the Company (each, a "Share"). This

represents a premium of 32.1% and 30%, respectively, over the Company's 30- and 60-trading day volume-weighted average price

as quoted by NASDAQ prior to the Company's announcement on February 1, 2016 that it had received a non-binding "going-private"

proposal from Mr. Weidong Yin, the chairman, president and chief executive officer of the Company, and SAIF Partners IV L.P. ("SAIF")

and/or its affiliates to acquire all of the outstanding Shares not already owned by them.

The consideration to be paid to holders of Shares

pursuant to the Amalgamation Agreement also represents an increase of approximately 13.3% from the original US$6.18 per Share offer

price in the "going-private" proposal announced on February 1, 2016.

Immediately following the consummation of the transactions

contemplated by the Amalgamation Agreement, Parent will be beneficially owned by a consortium (the "Buyer Consortium")

comprising Mr. Yin, SAIF, C-Bridge Healthcare Fund II, L.P. ("C-Bridge Capital"), Advantech Capital L.P. ("Advantech

Capital"), Vivo Capital Fund VIII, L.P. and Vivo Capital Surplus Fund VIII, L.P. (together with Vivo Capital Fund VIII, L.P.,

"Vivo Capital"). As of June 23, 2017, the members of the Buyer Consortium beneficially own in the aggregate approximately

29.5% of the issued and outstanding Shares.

Subject to the terms and conditions of the Amalgamation

Agreement, at the effective time of the amalgamation, Amalgamation Sub will be amalgamated with and into the Company, with the

Company continuing as the surviving corporation and a wholly owned subsidiary of Parent (the "Amalgamation"), and each

of the Shares issued and outstanding immediately prior to the effective time of the Amalgamation will be canceled in consideration

for the right to receive US$7.00 per Share in cash, without interest and net of any applicable withholding taxes, except for (i)

6,049,500 Shares held by Mr. Yin and 10,780,820 Shares held by SAIF (collectively, the "Rollover Shareholders"), (ii)

Shares held by Parent, Parent's affiliates, the Company or any of the Company's subsidiaries, which Shares, in each

case, will be canceled without payment of any consideration or distribution therefor and (iii) Shares owned by holders who have

validly exercised and not effectively withdrawn or lost their rights to dissent from the Amalgamation in accordance with the provisions

of Section 191 of the International Business Corporations Act, CAP. 222 of the Revised Laws of Antigua and Barbuda (as consolidated

and revised) (the "IBCA"), which Shares will be canceled at the effective time of the Amalgamation for the right to

receive the fair value of such Shares determined in accordance with the provisions of Section 191(4) or Section 195(2) of the IBCA,

The Buyer Consortium intends to fund the Amalgamation

through a combination of cash contributions from C-Bridge Capital, Advantech Capital and Vivo Capital or their respective affiliates

pursuant to equity commitment letters.

The Company's board of directors, acting upon

the unanimous recommendation of the special committee formed by the board of directors (the "Special Committee"), unanimously

approved the Amalgamation Agreement and the transactions contemplated by the Amalgamation Agreement, including the Amalgamation,

and resolved to recommend that the Company's shareholders authorize and approve the Amalgamation Agreement and the transactions

contemplated by the Amalgamation Agreement, including the Amalgamation. The Special Committee, which is composed solely of independent

directors of the Company who are unaffiliated with Parent, Amalgamation Sub or any member of the Buyer Consortium or management

of the Company, exclusively negotiated the terms of the Amalgamation Agreement with the Buyer Consortium with the assistance of

its independent financial and legal advisors.

The Amalgamation, which is currently expected to

close during the second half of 2017, is subject to customary closing conditions, including approval by an affirmative vote of

holders of Shares representing at least two-thirds of the Shares present and voting in person or by proxy as a single class at

a meeting of the Company's shareholders, which will be convened to consider the authorization and approval of the Amalgamation

Agreement and the transactions contemplated by the Amalgamation Agreement, including the Amalgamation, and the other closing conditions

specified in the Amalgamation Agreement. As of June 23, 2017, the Rollover Shareholders beneficially own in the aggregate approximately

29.5% of the issued and outstanding Shares. Pursuant to a support agreement among the Rollover Shareholders, Parent and Sinovac

Holding (Cayman) Limited, the sole shareholder of Parent, the Rollover Shareholders have agreed to vote all their Shares in favor

of the authorization and approval of the Amalgamation Agreement and the transactions contemplated by the Amalgamation Agreement,

including the Amalgamation. If completed, the Amalgamation will result in the Company becoming a privately-held Company and the

Shares will no longer be listed on NASDAQ.

Duff & Phelps LLC is serving as financial advisor

to the Special Committee. Weil, Gotshal & Manges LLP is serving as U.S. legal counsel to the Special Committee, Leslie-Ann

Brissett Legal Services is serving as Antigua and Barbuda legal counsel to the Special Committee and Haiwen & Partners is serving

as PRC legal counsel to the Special Committee.

Latham & Watkins LLP is serving as U.S. legal

counsel to the Company and Delaney Law is serving as Antigua and Barbuda legal counsel to the Company.

Lazard is serving as financial advisor to the Buyer

Consortium. Kirkland & Ellis is serving as U.S. legal counsel to Mr. Yin and the Buyer Consortium and Roberts & Co is serving

as Antigua and Barbuda legal counsel to the Buyer Consortium. Skadden, Arps, Slate, Meagher & Flom LLP is serving as U.S. legal

counsel to C-Bridge Capital and Advantech Capital. Ropes & Gray LLP is serving as U.S. legal counsel to Vivo Capital.

Additional Information about the Transaction

The Company will furnish to the Securities and Exchange

Commission (the "SEC") a report on Form 6-K regarding the proposed transactions described in this announcement, which

will include as an exhibit thereto the Amalgamation Agreement. All parties desiring details regarding the transactions contemplated

by the Amalgamation Agreement, including the Amalgamation, are urged to review these documents, which will be available at the

SEC's website (http://www.sec.gov).

In connection with the Amalgamation, the Company

will prepare and mail a proxy statement to its shareholders. In addition, certain participants in the Amalgamation will prepare

and mail to the Company's shareholders a Schedule 13E-3 transaction statement that will include the proxy statement. These

documents will be filed with or furnished to the SEC. INVESTORS AND SHAREHOLDERS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY

THESE MATERIALS AND OTHER MATERIALS FILED WITH OR FURNISHED TO THE SEC WHEN THEY BECOME AVAILABLE, AS THEY WILL CONTAIN IMPORTANT

INFORMATION ABOUT THE COMPANY, THE TRANSACTIONS CONTEMPLATED BY THE AMALGAMATION AGREEMENT AND RELATED MATTERS. In addition to

receiving the proxy statement and Schedule 13E-3 transaction statement by mail, shareholders also will be able to obtain these

documents, as well as other filings containing information about the Company, the Amalgamation and related matters, without charge,

from the SEC's website (http://www.sec.gov) or at the SEC's public reference room at 100 F Street, NE, Room 1580, Washington,

D.C. 20549. In addition, these documents can be obtained, without charge, by contacting the Company at the following address and/or

Sinovac Biotech Ltd.

No. 39 Shangdi Xi Road

Haidian District, Beijing, People's Republic

Phone: +86-10-8279-9871

The Company and certain of its directors, executive

officers and other members of management and employees may, under SEC rules, be deemed to be "participants" in the

solicitation of proxies from shareholders with respect to the Amalgamation. Information regarding the persons or entities who may

be considered "participants" in the solicitation of proxies will be set forth in the proxy statement and Schedule 13E-3

transaction statement relating to the Amalgamation when it is filed with the SEC. Additional information regarding the interests

of such potential participants will be included in the proxy statement and Schedule 13E-3 transaction statement and the other relevant

documents filed with the SEC when they become available.

This announcement is neither a solicitation of proxy,

an offer to purchase nor a solicitation of an offer to sell any securities and it is not a substitute for any proxy statement or

other filings that may be made with the SEC should the Amalgamation proceed.

Safe Harbor Statement

This announcement may include certain statements

that are not descriptions of historical facts, but are forward-looking statements. These statements are made under the "safe

harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be