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Dragon Announces R&D Achievement in Biotech Manufacturing Process
Date:10/31/2007

VANCOUVER, Oct. 31 /PRNewswire-FirstCall/ - Dragon Pharmaceutical Inc. (TSX: DDD; OTCBB: DRUG; BBSE: DRP) today announced that its biotech method for 7ACA production has been successfully implemented on a new production line. Management believes this achievement validates the Company's research and development efforts to improve its manufacturing technology. This technology would bring immediate benefits to production operations by increasing production efficiency and by eliminating the use of chemicals thus reducing our disposal costs and protecting the environment. Further, we believe that the overall adoption of the technology in our operations will reduce production costs which would enhance the Company's competitiveness in global market.

Environmental protection issues are always challenging to the chemical manufacturers. Investments in waste treatment can provide solutions to comply with discharging regulations, but result in relatively higher high costs. Our implementation of biotech technology can assist in reducing this environmental waste.

7ACA is a key product of the Company and the traditional chemical manufacturing process involves the use of expensive solvents, toxic and pollutant reactants such as methylene chloride, N,N-dimethylaniline and trimethylchlorosilicane, which lead to toxic wastes that are difficult to recycle and costly to be properly discharged. Moreover, it must be operated under severe temperature conditions (-40 degrees C to -60 degrees C) for complex chemical reactions, and thus result in high energy costs.

Under the biotech method, enzymes will be used to catalyze reactions, therefore eliminating the use of expensive solvents and toxic reagents, leading to a considerable reduction in the waste generation. In addition, the biotech process operates at moderate temperature which consumes less energy.

Dragon has been dedicated to this biotech project since mid 2006 and has gone through trials. Further, samp
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SOURCE Dragon Pharmaceutical Inc.
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