Sinovac Reports Unaudited Third Quarter 2012 Financial Results - Conference call scheduled for Thursday

Sinovac Reports Unaudited Third Quarter

2012 Financial Results

- Conference call scheduled for Thursday,

November 15, 2012 at 8:00 AM EST-

Beijing - November 15, 2012 -

Sinovac Biotech Ltd. (NASDAQ: SVA), a leading provider of vaccines in China, announced today its unaudited financial results for

the third quarter ended September 30, 2012.

Third Quarter 2012 Financial Highlights

(year-over-year comparisons to third quarter 2011)

Recent Business Highlights

Both Bilive sales and Healive sales in the private

pay market continued to exhibit solid year-over-year growth in the third quarter compared to the same period of 2011. In addition

to the private pay market sales growth, Sinovac continues to execute its sales plan in the public market. In the past few months,

the Company was awarded multiple provincial tender awards for both Healive and Anflu. Besides the tender awards in Gansu Province,

Beijing, and Shanghai previously announced, in October, Sinovac was selected by Jiangsu Centers for Disease Control and Prevention

(Jiangsu CDC) as one of the two vaccine manufacturers to supply inactivated hepatitis A vaccine for the EPI in Jiangsu province

in 2013. In the third quarter, total sales were mainly impacted by the decrease of Healive revenue in the public market, and sales

are expected to increase in the coming quarters after vaccine delivery.

The EV71 vaccine Phase III clinical trial is progressing

on schedule. The hand, foot and mouth disease (HFMD) case surveillance is ongoing, and documentation collection, data input, data

review, and quality control on the database are well underway and progressing on schedule.

In the third quarter, Sinovac Biotech received Good

Manufacturing Practices (GMP) certification from the China SFDA for the Company's dedicated mumps vaccine production plant at its

Sinovac Dalian facility.

August 22, 2012, Sinovac held its 2012 Annual General Meeting of shareholders. During the meeting, four proposals, including the

2012 Share Incentive Plan were approved, while a fifth, a proposal to

amend the Company's by-laws, was not approved.

Weidong Yin, Chairman, President and CEO of Sinovac, commented, "During the third quarter 2012, our hepatitis vaccine business

grew in the private pay market, while the Healive sales in the public market decreased compared to the same period of last year,

impacting our total sales. In the coming quarters we expect sales of Healive in the public market will pick up,

as we continue to improve our capabilities and expand our presence in that market."

Yin continued, "We expect the commercialization of our EV71 vaccine to become

our key future growth catalyst. Currently, the Phase III clinical trial of our EV71 vaccine is being executed smoothly and moving

forward well on schedule. We remain in close communication with the relevant authorities and experts on the expected schedule for

trial conclusion and data unblinding, and we will share that information

Dr. Yin concluded, "Our cash position and credit line facilities

with local commercial banks provide us with the resources to commercialize our EV71 vaccine being developed for HFMD. We

are in the position to drive the future growth of our business with a combination of commercialized vaccines and

vaccine candidates."

Financial Review for Third Quarter Ended

An analysis of sales and gross profit is as follows:

Total sales in the third quarter of 2012 decreased

7.0%, compared to $15.4 million in the same period of 2011.

The decrease in total third quarter 2012 sales were

primarily due to decreased Healive sales to the public market and reduced Anflu sales that started later this year. This was partially

offset by the increase of both Healive and Bilive sales in the private pay market. The Company ended the quarter with a net total

sales decrease of $1.1 million, or 7.0%, compared to the same quarter of last year.

vaccines sales for the nine months period ended September 30, 2012, increased 6.0% to $29.6 million, compared to $28.0 million

in the same period of 2011. Despite a 29.0% increase in Bilive sales, total sales decreased 17.0% to $29.6 million, compared to

$35.7 million in the same period of last year. The decrease was mainly affected by non-core government stockpiling of the pandemic

flu H5N1 vaccine sales of $7.7 million in the 2011 period, as there

were no government stockpiling sales in the current fiscal year to date. Please refer to note 1 below for the sales analysis for

the nine months period ended September 30, 2012.

Gross margin in third quarter of 2012 was 52.6%, compared to

56.8% in the same period of last year. The lower quarterly gross margin was mainly due to the increased provision for expired H1N1

inventory costs and overhead allocated to cost of goods sold arising from seasonal excess capacity. After deducting depreciation

of land use rights, amortization of licenses and permits, the gross margin was 52.4% and 56.5% for the third quarter of 2012 and

Selling, general and administrative expenses as a percentage

of third quarter 2012 sales were 54.9%, compared to 49.8% for the same quarter of the prior year. The increase in the year-over-year

quarterly SG&A expenses was mainly due to the ongoing preparation costs for the GMP upgrade and the Changping site validation.

Research and development expenses for the third quarter were

$3.8 million, a $1.4 million increase over the same period in 2011, mainly due to the ongoing EV71 clinical trial development.

The increase in depreciation of property, plant and equipment

and amortization of licenses and permits for the third quarter of 2012 was mainly due to the assets at Changping site that were

in use in the quarter.

As of September 30, 2012, cash and cash equivalents totaled

$82.0 million, compared to $104.3 million as of December 31, 2011. The Company utilized $1.1 million and $6.5 million of its

cash resources in the third quarter and nine months period, respectively, to contribute to its ongoing clinical trial for its proprietary

EV71 vaccine. The Company intends to provide the trial with approximately an additional $3.4 million during the remaining quarter

of the year and $1.5million in 2013. During the quarter and the first nine months period, $3.7 million and $8.7 million, respectively,

were spent for the ongoing capital needs of the Changping site development, which were in part covered by the credit line arrangements

already in place. Capital expenditure payments to complete the Changping site, which are in part covered by the credit line arrangements,

are estimated up to $7.0 million in the remaining quarter of 2012 and $8.7 million in 2013. The cash position and credit line facilities

with local commercial banks provide the Company with the resources to commercialize the EV71 vaccine being developed for

HFMD. The Company is in the position to drive the future growth of the business with a combination of commercialized vaccines

and vaccine candidates.

Sales Analysis for the Nine-month Period ended September 30,

Conference Call Details

The Company will host a conference call on Thursday, November

15, 2012 at 8:00 a.m. EST (November 15, 2012 at 9:00 p.m. China Standard Time) to review the Company's financial results and provide

an update on recent corporate developments. To access the conference call, please dial 1-877-407-4018 (USA) or 1-201-689-8471 (International).

A replay of the call will be available from 11 a.m. EST on November 15, 2012 to November 29, 2012 at midnight. To access the replay,

please dial 1-877-870-5176 (USA) or 1-858-384-5517 (International) and reference the replay pin number 403079.

A live audio webcast of the call will also

be available from the investors section on the corporate web site at www.sinovac.com. A webcast replay can be accessed on the corporate

website beginning November 15, 2012, and the replay will remain available for 30 days.

Sinovac Biotech Ltd. is a China-based biopharmaceutical company

that focuses on research, development, manufacturing and commercialization of vaccines that protect against human infectious diseases

including hepatitis A and B, seasonal influenza, H5N1 pandemic influenza and mumps, as well as animal rabies vaccine. In 2009,

Sinovac was the first company worldwide to receive approval for its H1N1 influenza vaccine, Panflu.1, and has manufactured it for

the Chinese Central Government, pursuant to the government-stockpiling program. The company is also the only supplier of the H5N1

pandemic influenza vaccine to the government-stockpiling program. Sinovac is developing a number of new pipeline vaccines including

vaccines for enterovirus 71 (against hand, foot, and mouth disease), of which the EV71 vaccine is currently in Phase III clinical

trials, pneumococcal conjugate, pneumococcal polysaccharides, varicella and rubella. Sinovac sells its vaccines mainly in China

and exports selected vaccines to Mongolia, Nepal, and the Philippines.

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.