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China Cord Blood Corporation Forms Zhejiang Subsidiary
Date:2/22/2011

HONG KONG, Feb.22, 2011 /PRNewswire-Asia-FirstCall/ -- China Cord Blood Corporation (NYSE: CO) ("CCBC" or "the Company"), the first and largest cord blood banking operator in China, today announced the formation of Zhejiang Lukou Biotechnology Co., Ltd. ("Zhejiang Lukou"), an indirect non-wholly owned subsidiary with the Zhejiang Provincial Blood Center, pursuant to the Company's framework agreement announced in September 2010.  Zhejiang Lukou, which is 90% owned by CCBC, will operate, on an exclusive basis, its cord blood banking services in the Zhejiang province.  

Under China's "One License per Region" policy, only one cord blood bank license is granted per province or municipality.  The Zhejiang cord blood banking license would be the seventh license granted in China and represents the first license issued since 2008.  Operating the Zhejiang subsidiary will broaden CCBC's coverage into the new and previously untapped market of the Zhejiang province.  

Ms. Ting Zheng, Chairperson and CEO of China Cord Blood Corporation, stated, "We continue to make solid progress on the commercialization of our Zhejiang cord blood banking operation, and today's announcement is an important step toward commercializing our services in this previously untapped region.  We are excited about the opening of Zhejiang Lukou, and from there, the next step in developing the Zhejiang market is infrastructure construction and building up our team, followed by a series of pre-marketing initiatives and early-stage market education activities.  By replicating our successes in Beijing and Guangdong, we are confident that the Zhejiang operation will commence in a timely and efficient manner."

Zhejiang is one of the more affluent regions in China, after Shanghai, Beijing and Guangdong, with a birthrate of over 520,000 newborns per annum, according to the Natio
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