Sinovac Biotech Ltd (SVA)

[Belugas]

Sinovac Announces Favorable Reduction in Value Added Tax Rate

Sinovac Biotech Ltd. (NASDAQ: SVA), a leading provider of biopharmaceutical products in China, today announced that the value added tax (or "VAT") rate applied to the sales of Sinovac's vaccine products will be reduced to 3% from the current rate of 6%, according to a joint notice on reducing and unifying the value added tax (VAT) rate published by the Ministry of Finance of China and State Administration of Taxation of China. The notification will become effective July 1, 2014.

Mr. Weidong Yin, Sinovac's CEO and President commented, "The notification is favorable news for Sinovac. We expect this new policy will beneficially impact our future financial results including total sales and net income as sales revenue is recognized as the invoiced value of products sold minus VAT."