Tongjitang Pharmaceuticals (TCM)

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Tongjitang Chinese Medicines Comments on Share Incentive Plan
Tuesday December 18, 9:00 am ET

SHENZHEN, China--(BUSINESS WIRE)--Tongjitang Chinese Medicines Company (NYSE: TCM - News), a leading specialty pharmaceutical company focusing on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China, today commented on its employee share incentive plan. The Company recently filed a Form S-8 with the U.S. Securities and Exchange Commission to register the ordinary shares issued or issuable under the Company’s 2006 Share Incentive Plan.

The maximum number of shares that could be issued under the share incentive plan is ten percent of the aggregate issued and outstanding shares at such time. As of now, the Company has granted 5,200,000 share options (equivalent to 1,300,000 ADS), with the exercise price of USD2.91 per ordinary share (USD11.64 per ADS). Approximately one-third of these options had vested in August 2007, and approximately one-third of these options will vest in 2008 and 2009, respectively. Additionally, the Company has granted 1,656,714 restricted shares (equivalent to 414,179 ADS). These restricted shares have a vesting schedule similar to that of the options above.

Xiaochun Wang, Tongjitang’s chief executive officer and chairman of its board of directors, stated, “We are pleased to put into effect our share incentive plan so that we retain and motivate our employees. We live by our goal to make Tongjitang one of China’s leading TCM institutions over the long-term and our seasoned, dedicated employees are the driving force in this pursuit.”

About Tongjitang Chinese Medicines Company

Tongjitang Chinese Medicines Company, through its operating subsidiaries Tongjitang Pharmaceutical, Tongjitang Distribution, Tongjitang Chain Stores, and Tongjitang Planting, is a vertically integrated and profitable specialty pharmaceutical company focusing on the development, manufacturing, marketing and selling of modernized traditional Chinese medicine in China. Tongjitang’s principal executive offices are located in Shenzhen, China.

Tongjitang’s flagship product, Xianling Gubao, is the leading traditional Chinese medicine for the treatment of osteoporosis in China as measured by sales in Renminbi amounts. In addition to Xianling Gubao, the company manufactures and markets 10 other modernized traditional Chinese medicine products and 37 western medicines. Visit www.tongjitang.com for more information.
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