Sinovac Establishes Joint Venture to Expand Human-Use Vaccine Development and Manufacturing Capabilities -Sinovac to Own 55% in Joint Venture by Year End 2010- BEIJING, Nov. 25 /PRNewswire-Asia/ -- Sinovac Biotech Ltd. (

Sinovac Establishes Joint Venture to Expand

Human-Use Vaccine Development and Manufacturing Capabilities

-Sinovac to Own 55% in Joint Venture by Year

BEIJING, Nov. 25 /PRNewswire-Asia/ -- Sinovac Biotech

Ltd. (Nasdaq: SVA), a leading developer and provider of vaccines, announced

today that it executed a joint venture (JV) agreement to establish Sinovac

(Dalian) Vaccine Technology Co., Ltd. (Sinovac Dalian). The JV will research,

develop, produce and commercialize human-use vaccines. Sinovac will contribute

its expertise and experience in developing and commercializing world-class

vaccines; the other party will bring its land use rights, manufacturing

facilities and established operating infrastructure.

Mr. Weidong Yin, Chairman, President and CEO of

Sinovac, remarked, Sinovac Dalian brings to Sinovac a highly efficient

platform to expand our manufacturing capacity, diversify our production

capabilities and increase our operational scale. By leveraging the favorable

investment environment, Dalian s relatively low operating cost and its existing

facilities, this JV enables Sinovac to cost effectively establish manufacturing

platforms for live attenuated vaccines and vero cell cultured vaccines, thus

adding another important manufacturing site for Sinovac s vaccine products. The

day-to-day operations of the JV will be led by Sinovac management as we

continue to execute our business development strategy to advance and expand our

development pipeline, and increase our manufacturing capacity to meet the

growing domestic and international demand for human-use vaccines.

In conjunction with its formation, Sinovac representatives

will occupy key positions at the JV including Chairman, General Manager, Head

of Research and Development and Financial Director. Sinovac Dalian will be

headquartered in Dalian, Liaoning Province and will occupy a total area of

approximately 1,000,000 square feet. The building area is approximately 200,000

square feet, which is comprised of a nearly 60,000 square foot manufacturing

and R&D facility. The campus currently contains two vaccine production

lines -- one for the vero cell cultured vaccines and one for live attenuated

vaccines -- and has capacity to house approximately six different production

lines. In addition, the headquarters feature quality assurance and quality

control facilities, research laboratory, office building and warehouse.

Based on current projections, Sinovac Dalian s development

pipeline is expected to be comprised of vaccines for rabies, mumps, varicella,

and rubella. The Dalian-based facility has a designed annual manufacturing

capacity of 20 million doses of vero cell cultured vaccines and 20 million

doses of live attenuated vaccines.

Sinovac Biotech through its wholly-owned subsidiary Sinovac

Biotech (Hong Kong) Ltd, shall make an initial cash contribution of 60 million

RMB, or approximately $8.8 million. Dalian Jin Gang Group, the other party,

shall make an asset contribution, inclusive of its manufacturing facilities,

production lines and land use rights, with an appraised value of 140 million

RMB, or approximately $22.5 million. Equity interest is divided 30% and 70%

between Sinovac and Dalian, respectively. Pursuant to the agreement executed

between Sinovac and Dalian Jin Gang Group, Sinovac will increase its equity

shares to 55% in exchange for a cash contribution of 50 million RMB, or

approximately $7.5 million, on or before December 31, 2010.

Biotech Ltd. is a China-based biopharmaceutical company that focuses on the

research, development, manufacture and commercialization of vaccines that

protect against human infectious diseases. Sinovac s commercialized vaccine

products include Healive(R) (hepatitis A), Bilive(R) (combined

hepatitis A and B), Anflu(R) (seasonal influenza), Panflu(TM) (pandemic

influenza (H5N1)), and PANFLU.1(TM) (pandemic influenza A (H1N1)).

Safe Harbor Statement

This announcement contains 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 identified by words or phrases such as will, expects, anticipates,

future, intends, plans, believes, estimates and similar statements.

Among other things, the business outlook and quotations from management in this

press release contain forward-looking statements. Statements that are not

historical facts, including statements about Sinovac s beliefs and

expectations, are forward-looking statements. Forward-looking statements

involve inherent risks and uncertainties. A number of important factors could

cause actual results to differ materially from those contained in any

forward-looking statement. Sinovac does not undertake any obligation to update

any forward-looking statement, except as required under applicable law.