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Benda Pharmaceutical Reports Third Quarter 2008 Financial Results
Date:11/18/2008

trial production and test the production process at the plant, which will be followed by a test of the production results, held by the government bodies. While those tests are performed, the management has been searching for high-margin products that will be accretive once production has fully resumed. -- SiBiono Arbitration: On November 27, 2007, Benda Ebei received an arbitration award from Shenzhen Arbitration Commission which determined that it should purchase a 6.24% stake in SiBiono from Xiaozhi Zhang, one of the shareholders of SiBiono, with the total consideration at RMB12.48 million, plus the penalty and related legal and arbitration expenses, totaling approximately RMB12.8 million. However, following this arbitration award, Benda Ebei found that Xiaozhi Zhang does not own all 6.24% of SiBiono's common stock and actually only owns 3.28%. Therefore, based on this ground, Benda Ebei filed an application to Shenzhen Peoples' Court on May 22, 2008 to terminate the above mentioned arbitration award. The application has been accepted by the Shenzhen Peoples' Court and is waiting for its further investigation. -- Intellectual Property Lawsuit: On August 27, 2008, SiBiono received Case Acceptance Letters from the Guangdong Province Shenzhen City (Middle) Peoples' Court accepting a lawsuit against Zhaohui Peng, one of the shareholders of SiBiono and the inventor of Gendicine, to transfer title of all patents to SiBiono. The patent, "A new method for manufacturing recombinant adenovirus", one of the main patents used to produce Gendicine(R), has been assigned to SiBiono; however, the other 5 approved patents in PRC still have not been assigned to SiBiono. The Company believes that all the above mentioned patents should be rightfully transferred to SiBiono. '/>"/>
SOURCE Benda Pharmaceutical, Inc.
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