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

les have been sent to customers with our customers giving us confirmative feedback as to quality. The first commercial production line has been put into operation in October 2007 with a capacity of 10 tons per month, thus Dragon's total annual capacity for 7ACA increases from 600 tons to 720 tons. The Company plans to adopt this technology for all its 7ACA production.

As encouraged by this achievement, Dragon, as it always does, views research and development as a vital driver of its business strategy and is actively engaged in other major R&D activities, such as cephalosporin C fermentation project. As fermentation technology is one of the key factors that affect the costs and quality of its products, Dragon has established long term collaborations with East China University of Science and Technology to improve fermentation yield. This project has been listed as a key project under China National High-tech R&D Program - one major task of which is to develop strategically important technologies for biological and pharmaceutical industries during China's 10th Five-year Plan period. Currently, project team members are already in the critical stage of raw materials substitution test, bacteria selection test and fermentation process optimization.

This press release contains forward looking statements, including but not limited to, that the Company will continue to be able to improve its technology and product quality. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward looking statements. Readers should not place undue reliance on forward looking statements, which only reflect the views of management as of the date hereof. The Company does not undertake the obligation to publicly revise these forward looking statements to reflect subsequent events or circumstances. Readers should carefully review the risk factors and other factors described in its periodic
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SOURCE Dragon Pharmaceutical Inc.
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