Simcere Pharmaceutical Group Reports Unaudited First Quarter 20...(share for the first quarter of 2009 were...)

As of March 31, 2009, the Company had cash, cash equivalents and restricted cash of RMB 825.5 million (US$120.8 million), compared to RMB813.8 million as of December 31, 2008.

On January 6, 2009, the Company completed an acquisition of the remaining 10% of the outstanding shares of Shandong Simcere Medgenn Bio-Pharmaceutical Co., Ltd. ("Shandong Simcere") for a cash consideration of approximately RMB30.1 million (US$4.4 million). Following the acquisition, Shandong Simcere became a wholly-owned subsidiary of the Company.

Subsequent event

On April 15, 2009, the compensation committee of the Company's board of directors approved a share option exchange program that offered the Company's eligible employees and directors the right to exchange vested and unvested outstanding share options to purchase ordinary shares of the Company under the 2006 Share Incentive Plan for restricted shares of the Company. The exchange ratio was determined based on the fair value of replacement restricted shares so that the fair value of the replacement restricted shares to be issued upon exchange would be approximately equivalent to the fair value of the share options surrendered by an individual. In addition, these replacement restricted shares are subject to substantially the same vesting schedule as the options that are validly tendered in the exchange offer. The exchange of the share option awards for restricted shares was accounted for as a modification for awards which involves a cancellation of the original award and an issuance of a new award. The replacement restricted shares were granted on May 7, 2009. Management does not expect the effect of this award modification on
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